Pallonji Mistry’s Master Class in Managing Family Business
Where others have failed, Mr. Pallonji Mistry has proved to be a visionary. The business world has always hailed the foresight and acumen of business leaders like Late Dhirubhai Ambani, Mr Ram Prasad Goenka (R P Goenka) and other illustrious names who have built empires from humble beginnings. Mr Pallonji Mistry built on the business that his grandfather started in a small way (Ratan Tata’s successor: Spirit of enterprise runs deep in Cyrus Mistry’s family). Today, Shapoorji Pallonji group has over 23,000 employees and a turnover of US $ 2.5 billion, with presence across real estate, construction, infrastructure, agriculture, consumer products, textiles, engineering, shipping and logistics. Beside this it is the largest single investor in the Tata Sons, the holding company of the Tata group.
All these business leaders have created vast amounts of wealth for themselves and their children to inherit. Then what has Mr. Pallonji Mistry done differently that we can actually stand and salute him?
In one master stroke he has done what others could not do. He has crafted a succession plan that effectively takes care of the aspirations of both his sons and has insured that there shall be no warring in future. Most siblings end up squabbling for a larger share in the inheritance not because of the quantum that each begets but for their desire to lead the flagship business. All family succession have met the same fate.
In this case, what has been achieved is not short of a master class in managing relationships and ensuring that the family stays together. The elder son gets to drive the Shapoorji Pallonji business whereas the younger on, Cyrus Mistry shall head the Tata empire. They shall remain as one happy family……
