Towering legacy: Pallonji Mistry's business achievements span continents

They called him the “phantom of Bombay House” — his powerful presence felt rather than seen in the Tata Group headquarters. Pallonji Mistry, the man who was the biggest shareholder of Tata Sons outside of Tata Trusts and whose Mumbai-headquartered construction conglomerate, Shapoorji Pallonji (SP) Group, left its footprint across continents, died early Tuesday morning. He was 93.

The billionaire philanthropist had been ailing for a long time, SP Group officials said. Mistry, who passed away peacefully at his Mumbai residence, is survived by his wife Patsy, daughters Laila Rustom Jehangir and Aloo Noel Tata, and sons Shapoor Mistry and Cyrus Mistry.

The patriarch of the over 155-year-old construction empire held an 18.4 per cent stake in Tata Sons, Tata Group’s holding company. Through the years, his influence over Tatas’ affairs remained strong. The family’s public and bitter showdown with the Tata Group would also be remembered as one of the biggest corporate battles of recent times. The Mistry and Tata families are also related through marriage: Mistry’s daughter, Aloo, is married to Noel Tata, the half-brother of Tata patriarch, Ratan Tata.

An Irish citizen since 2003, after his marriage to Dublin-born Patsy, Mistry was briefly the chairman of Associated Cement Companies (ACC), which was a Tata company in the 1990s, but he quit soon after the Tatas exited the cement business. As a director on Tata Sons board till 2004, he is said to have had a cordial relationship with Ratan Tata, supporting the latter in all his decisions, including those that involved buying companies overseas and exiting some businesses.

Mistry had divided his shares in Tata Sons and his business equally between his sons a few years ago. His younger son, Cyrus, was made the chairman of Tata Sons in 2012, but was ousted in October 2016 after a bitter fallout with Ratan Tata.

A large part of the Mistry family wealth is attributed to the stake in Tata Sons. The sharp rise in Tata Group shares increased Mistry’s wealth by several billion dollars in the last five years. According to Bloomberg Billionaires Index, Mistry had a net worth of almost $29 billion — making him one of the richest men in India and Europe.

Mistry’s legacy stands on strong foundation — literally. Under him, the Shapoorji Pallonji Group, which was founded in 1865, built some of Mumbai’s most recognisable landmarks: the Taj Mahal Palace, Hong Kong Bank, Grindlays Bank, Stan­dard Chartered Bank, the Reserve Bank of India and the Oberoi Hotel buildings. The group also built Famous Studios at Mahalaxmi. But it itself operated from Colaba in South Mumbai out of a nondescript, single-storey old textile factory building — in keeping with the family’s philosophy of staying away from the limelight.

A less known trivia is that Mughal-e-Azam, the biggest blockbuster of its time in Hindi cinema, was produced by Mistry’s father, Shapoorji Pallonji Mistry, and was re-released by the family after it was digitally coloured in 2004. The family, however, did not invest in the movie business after that.

Born in 1929, Mistry went to school and college in Mumbai and joined the family business, Shap­oorji Pallonji & Company Ltd, in 1947. He was 18. He quickly learned the ropes, under the watchful eyes of his father, experiencing the ups and downs as Indian businesses evolved post-Independence. In 1975, after his father’s death, he took over the company.

An astute businessman, Mistry was quick to spot new opportunities that India’s industrialisation and growing economy presented.

Forward-looking, confident and determined, he had already ventured abroad by the end of the 1960s. At that time, the construction sector in West Asia, fuelled by petrodollars, was booming. The company bid for, and won, a tender to build the Palace of Sultan Qaboos bin Said al Said in Muscat.

When the sultan opened his palace to visitors in 1975, not only did it establish Shapoorji Pallonji as the first Indian construction company to have completed a project abroad, but the palace also became a showpiece of Indian capabilities to the world.

Hailed as a construction marvel, the Muscat palace became the gateway of trust and opportunity for other Indian companies to dream beyond Indian shores. It also made the Indian government look afresh at the country’s potential and policies.

For the SP Group, the project served as a launch pad to consolidate its presence in West Asia and thereafter foray successfully into Africa, where it went on to execute several landmark projects: the Presidential Office of Ghana, the National Assem­bly of Gambia, to name some. There is also the Ebene IT Park in Mauritius. All these projects won recognition and accolades internationally and have provided employment and exposure to Indian labour and engineers. The group has over 70,000 employees worldwide.

Under Mistry’s chairmanship, the company grew substantially in the later decades of the last century. He also acquired strategic stakes in other companies — such as Sterling and Wilson, United Motors, Forbes Gokak and Afcons Infrastructure — and brought them within the fold of the SP Group.

Over the years, he served on the boards of several organisations: Union Bank of India, W H Brady Group of Companies, ACC and, of course, Tata Sons.

In early 2012, Mistry stepped down as chairman of Shapoorji Pallonji & Company Pvt Ltd, the operating and holding company of the SP Group, and handed over the chairmanship to his elder son, Shapoor Mistry.

In 2016, in recognition of his enormous contribution to Indian industry and nation-building over six decades, he was awarded the Padma Bhushan.

Along with his wife, Mistry had in 2006 funded and set up a home for senior citizens of the BD Petit Parsee General Hospital, Mumbai. His personal philanthropy over the decades has also been significant. Always given privately and without fanfare, it was in keeping with his style — understated, impactful.

He made monumental contributions: Modi

“Saddened by the passing away of Shri Pallonji Mistry. He made monumental contributions to the world of commerce and industry. My condolences to his family, friends and countless well-wishers. May his soul rest in peace.”

Narendra Modi, Prime Minister

“I am sad to learn that Pallonji Mistry is no more. He was doyen of infrastructure and building industry. His contribution to wealth creation and nation building will be long remembered. Condolences to his family & friends.”

Ram Nath Kovind, President