Cyrus Pallonji Mistry has been appointed as the group's deputy chairman immediately and will take over as chairman after Ratan Tata retires when he turns 75 in December 2012, India's biggest business conglomerate by revenue said. Ratan Tata said the appointment is a good and far-sighted choice.

Tata Group had been trying to find a replacement for Ratan Tata for more than a year. The 43-year-old Mr. Mistry will be the sixth chairman of the group, which was founded by Jamsetji Nusserwanji Tata in 1868 and now comprises more than 100 companies in businesses such as steel, automobiles, telecommunications, beverages and information technology. The group has operations in more than 80 countries across six continents, and its companies export products and services to 85 countries.

Cyrus Mistry is the younger son of Pallonji Mistry, whose construction firm Shapoorji Pallonji & Co. is the biggest shareholder of Tata Sons with a stake of about 18%. Cyrus, who has been on the Tata Sons board since August 2006, is managing director of Shapoorji Pallonji. Mr. Mistry said in a statement he will legally dissociate himself from the management of his family businesses to avoid any conflict of interest. Mr. Mistry is a civil engineering graduate from Imperial College London and holds a masters degree in management from the London Business School.