Challenges ahead for new Tata chief

Cyrus Mistry, who took charge yesterday at Tata, India's biggest business group, may face an uphill battle if he is to meet his predecessor's vision of boosting revenue fivefold to US$500 billion in the next decade.

Mistry, 44, becomes chairman of Tata Sons, the holding company for the salt-to-software group, just as slower economic growth dampens demand for products from steel to cars.

Ratan Tata, who steps down on turning 75 after two decades at the helm, built the business into a US$100 billion global conglomerate through acquisitions including Britain's Corus Group and Jaguar Land Rover. Tata succeeded his uncle in 1991 as India's economy was opening up.

"It is not an easy task to grow fivefold in this global economic scenario," said Shishir Bajpai, senior vice-president at IIFL Wealth Management in Mumbai. "The bar is set high for Mistry to deliver. Ratan Tata took a group well known in the domestic markets global, now Mistry has to take it forward."

The change of guard marks a rare opportunity to shape the group of more than 100 companies, whose expansion has mirrored India's emergence as a global economic power and ranks Tata above Japan's Panasonic and Swiss food giant Nestle by sales.

At stake is the equivalent of about 6 per cent of India's gross domestic product, and the future of firms including Tata Steel, India's biggest producer of the alloy, and Tata Motors, the nation's No1 carmaker by revenue.