Shapoor Mistry & his family has been associated with Tata group for many years. Now the next generation also has stakes in Tata Sons.
Shapoor Mistry, the eldest son of the late Pallonji Mistry, now oversees the Shapoorji Pallonji Group, a 159-year-old conglomerate known for its engineering and construction expertise. With a revenue of $30 billion, the group is a major player in the industry. However, Shapoor’s journey has been marked by personal and professional challenges, including managing the family’s debt-laden business and dealing with profound losses.
Shapoor Mistry Personal and Family Background
Shapoor Mistry was born in 1964 to Pallonji Mistry and Patsy Perin Dubash. He has two sisters and a younger brother, the late Cyrus Mistry. Following the deaths of Pallonji Mistry in June 2022 and Cyrus Mistry in September 2022, Shapoor became the head of the family and its business empire.
Shapoor shares the family’s fortune with his brother’s heirs, Firoz and Zahan Mistry. Together, they manage their most valuable asset—an 18.4% stake in Tata Sons, the $165 billion holding company of the Tata Group. This stake, valued at approximately $130 billion, has long been a cornerstone of the Mistry family’s wealth.
Mistry family And Tata Group Relations
The Mistry family’s connection with Tata Sons dates back decades, but their relationship soured in 2016 after a major corporate dispute. Shapoor’s younger brother, Cyrus Mistry, was appointed chairman of Tata Sons in 2012, marking a new chapter in the family’s influence over the Tata Group. However, his removal from the position in 2016, orchestrated by Tata Trusts, led to one of India’s most significant corporate battles.
Shapoor Mistry is the brother-in-law of Noel Tata, and the two are related through their marriage to Aloo Mistry who is Noel Tata’s wife. Ratan Tata is brother in law of Shapoor’s sister Aloo Mistry.
The fallout ended years of collaboration between the two families, with legal battles dominating headlines. Pallonji Mistry, known as the “Phantom of Bombay House” for his quiet but powerful influence, remained at the center of the controversy until his passing.
Restructuring Shapoorji Pallonji Group
In recent years, the Shapoorji Pallonji Group has faced financial difficulties, particularly concerning cash flow and debt repayment. Shapoor, along with his late brother Cyrus, initiated significant restructuring efforts to stabilize the business.
In FY21, the family reorganized operations by creating two separate entities like S.P. Finance which is focused on infrastructure ventures. S.C. Finance is edicated to real estate investments.
These changes aimed to streamline operations and improve cash flow, addressing challenges posed by long-term investments in infrastructure and real estate.
Shapoor Mistry has also taken steps to involve the next generation in managing the family’s vast empire. His son and Cyrus’s two sons, Firoz and Zahan, are being groomed for leadership roles within the group, ensuring continuity and the family’s legacy.
Despite personal losses and professional hurdles, Shapoor Mistry is restructuring the business and fostering a new generation of leaders, ensuring the family’s storied legacy continues to thrive in a rapidly changing business landscape.