"The Phantom of Bombay House" or Pallonji Shapoorji Mistry is one of those unsung heroes of the Indian business who build an empire from nothing over generations. Like Tatas, the story of his family is one of dedication, hard work and razor sharp focus. It's a pity that very little is known about this reclusive billionaire and most of the details are based on the stories Bombay house old timers like to fondly share with anyone interested in the legendary history of Tata empire.
Mistry family's legendary story begins around the same time when Jamshedji Tata was starting off Tata & Sons along with his sons and nephew. That was when Pallonji Shapoorji Mistry (Cyrus' great grandfather) established Littlewood Pallonji Construction business in Mumbai. His son Shapoorji Pallonji Mistry (Cyrus' grandfather) grew the business taking advantage of the construction boom witnessed during the growth of Mumbai and grew the firm into one of the leading construction companies in the country rechristening it- Shapoorji Pallonji Constructions. His son Pallonji Shapoorji Mistry (Cyrus' father) gave the firm a global footprint by executing multiple projects in Middle East along with superior commercial and residential work in India. His son Shapoorji Pallonji Mistry (Cyrus' brother) and Cyrus Pallonji Mistry further expanded the footprint to Africa and diversified into more complex projects like ports. Quite like the phantoms, who are unrecognisable in their deeds and identity over generations; the Mistrys have also toiled with single minded focus in growing their empire. The family practice of giving first born sons their father's name and the Parsi practice of using father's name as their middle name ends up giving an impression that the generations of Mistrys is the same person, quite like the Phantom.
Mistry's association with Tatas goes back to the years when Tatas were metamorphosing into an industrial empire and implementing Jamshedji's vision of industrialising India. Shapoorji (Cyrus' grandfather) helped the Tatas build Taj Mahal Hotel, Tata Steel factories and Tata Hydel Power plants with their construction expertise. The association didn't stop there and this is where it get tricky. The onerous investments on Tata Steel and Tata Hydro nearly bankrupted the group and Dorabji Tata had to heavily borrow money from their main financier FE Dinshaw. FE Dinshaw, an old friend of Tatas were completely invested into the Tata vision of industrialisation and was part of the board. The borrowed money which was never paid back was converted to 12.5% equity of Tata Sons. FE Dinshaw later in his life became close to Shapoorji Mistry when he hired him to build his palatial home in Pune. It is believed that Shapoorji saw value in Dinshaw's holding in the group and thus acquired it from Dinshaw's heirs. Ironically, the mansion Shapoorji build for Dinshaw today is Tata Management Training Centre (TMTC), the LBS IAS Academy Mussorie fashioned training centre for the new TAS batches. Shapoorji continued his buying of Tata Sons shares from the disgruntled siblings of JRD and steadily took his shareholding to over 18% over a period of time. It is said that JRD was deeply incensed by this intrusions of Mistry into his family heirloom but was powerless then to do anything.
After the death of Shapoorji, Pallonji Shapoorji Mistry aka the Phantom of Bombay House chose to mend bridges with JRD and gave him a free hand to run the empire without any interference. Like a seasoned investor who just found the right CEO, Pallonji might have found the arrangement perfect- a capable captain in JRD growing his wealth manifold. He confined himself to one board seat knowing well that it will be impossible to challenge JRD. Rather he focused on his construction empire building it from strength to strength; some time at the expense of Tatas. All construction contracts of Tata factories were a monopoly of Shapoorji Pallonji Construction. Pallonji's firms even had the right to first refusal on businesses Tatas were disinvesting; Forbes India was taken over through this agreement. With his omnipresence in the background and boardroom and obsessive reclusiveness, Pallonji soon acquired the sobriquet of the Phantom of Bombay house. When JRD decided to step down and pass the mantle to RNT, Pallonji steadfastly supported the successor helping him immensely in his battle against the satraps Rusy Modi (Tata Steel), Durbari Seth (Tata Chemicals) etc who wanted one of them as the next chairman.
The Phantom's handiwork didn't end there; it is said that it was Pallonji who coerced RNT to take TCS publish. TCS being private would have given Tata chairman free hand on how to use its large profits while a listed TCS would have vastly increased the wealth of its holding company Tata Sons. It is said that RNT agreed to take TCS public only after Mistry agreed to participate in a share buyback deal of Tata Sons thus bringing his shareholding to 18% which exists even today.
"There are countless such incidents when Phantom's signature was visible in the monumental decisions taken by that Tata board and chairman" vouched a Bombay House old timer over a streaming cup of coffee during our days when the first Starbucks store was getting set up at Elphinstone building below my TRIL office. "But his finest hour was when his son Cyrus took over from RNT. I am sure he was coerced into it. Otherwise why will a person who was earlier entrusted to search for RNT's successor become the candidate all of sudden. Mistry's think the power is finally theirs but RNT is still the chairman of the Trusts and that is where the power truly rests." As we saw from the incidents which followed a few years later, true power was indeed with RNT and he exercised it when he felt it was needed. Is the Phantom lurking in the shadows, preparing for the next battle, only time will tell!
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