Building a world enterprise

Friends and business associates describe him as "an excellent gentleman,” philanthropic, humble, self-effacing. Yet his name figures on the Forbes list of world billionaires, ranked at number 170, with a net worth of $ 3.2 billion. But for Pallonji S. Mistry, unlike most billionaires, mammon has never been the sole motivator, nor does he surround himself with the arrogance of affluence.

Mistry heads the Shapoorji Pal­lon­ji (SP) group. His flagship company, Shapoorji Pallonji and Company Limited, is a colossus in construction, having built power plants, airports, highways, industrial townships, palaces, corporate buildings, residences... Originally known as Littlewood Pallonji and Company founded by his grandfather Pallonji, it obtained its first contract way back in 1865. The SP group has shown a remarkable ability to adapt to changing technologies and the mantras of the new millen­nium — incorporating over the years the efficient energy of Sha­poorji Pallonji Power Company Limited, the good credit of Sha­poorji Pallonji Finance Limited, the sheen of SP Aluminium Sys­tems Private Limited, the high rise of SP Real Estate, the high tech of BPO (business process outsourcing), the clicking of online lottery...

The group has just completed the construction of an IT (Information Technology) Park in Mauritius; a hotel in Kabul will soon be ready, a new order has been bagged for the construction of a cricket stadium in Guyana in South America.

To the fourth estate, Mistry has remained somewhat of a mystery. The media focus not on his flamboyance or page three draw, but on the rock-solid foundations of his companies. "I was 18 when I joined my father Sha­poo­rji in the business. In 1971 it was my initiative to take the company abroad (obtaining a pres­ti­gious contract for the building of a palace for the Sultan of Oman as well as ministerial buildings, the first by an Indian construction company abroad). The move has fructified well. We have never looked back. I’m semi retired now. My two sons, Sha­poor and Cyrus, are looking after the business. I’m happy, I’m contented,” 75-year-old Mistry told Parsiana in a fleeting inter­view, moments after he had been felicitated by the World Zar­athushti Chamber of Commerce (WZCC) who bestowed on him its honorary membership at a well-attended dinner meeting on April 6, 2005 at the West End Hotel in Bombay sponsored by Hilla Builders Private Limited.

"This singular honor (conferment of honorary membership of the Chamber) is bestowed on only one eminent Zarathushti busi­nessman (annually) worldwide... For the year 2004 several nomina­tions were received and the unanimous vote of the board of direc­tors was in favor of Mistry,” notes a WZCC communiqué. Earlier awardees were Nadir Godrej (in 2000, the first year of the award), Alayar Dabastani (2001), Minoo Shroff (2002) and Fali Nariman (2003).

"The genesis of the word ‘wealth’ is to be found in the word ‘weal’ which means well-being, welfare, happiness,” stated Kersi Limathwalla, Mumbai chapter chair in his opening remarks. "If wealth means welfare of community and country, Mistry epitomizes this. He gives without asking. And having given, politely asks if it is enough. He demonstrates greatness in humility.”

In a brief address, Jamshyd Godrej, chairman of Godrej and Boyce Manufacturing Company Limited, made a plea for "sustainable development.” The Mistry family had contributed greatly to the development of Bombay city, he noted, with several landmark buildings (Reserve Bank of India, State Bank of India, Tata Memorial Hospital, Tata Institute of Fundamental Research, Taj Intercontinental and Oberoi Hotels...) built by the group dotted across Bombay. President of the World Wide Fund for Nature, Godrej touched upon a subject close to his heart — degradation of the environment. Compared to China, which is also a fast developing nation, India has been able to keep its head above water, due mainly to the pressures exerted by the NGOs (non-governmental organizations), an open Press and the courts, Godrej remarked.

"As a community we (Parsis) have been greatly involved in building the city and country. We need to get together and build on what we have achieved, despite demographics being against us,” asserted Godrej. "Lead the next generation on. You will give direction to our community,” he exhorted Mistry.

Speaking with emotion about his "lifelong friendship over 70 years and more” with Mistry, noted radiologist Dr Jimmy Sidhva recalled that their friendship began "after an epic fight (in St Xavier’s School playground), when he bashed my head into an iron grating! He grew up to become a captain of industry; I have spent my life looking into people’s insides,” Sidhva quipped.

Describing Mistry as "a gentleman to the core,” low-key and reticent who "must be shuddering even now at all the attention,” Sidhva asserted that Mistry must have given "lakhs and crores in charity.” Not a single person who is genuine is turned away without a good contribution, said Sidhva, adding that Mistry’s only request is maaru naam nahi avé (my name should not appear). Sidhva touched upon the industrialist’s immense love for his family — wife Patsy and four children, Shapoor, Cyrus, Aloo Noel Tata and Laila Rustom Jehan-gir and their families. Whenever he is abroad he would often be on the phone inquiring about the family’s well-being.

Terming the international businessman a "great Zarathush­trian” who has a deep affinity and love for his religion and who prays daily, Sidhva recalled an occasion when Mistry flew into Bombay in the early hours of the morning, bathed, changed and moved straight on to Udvada, returning to Bombay the same evening to fly out again. If it is Meher roz and he is in Bombay, he would be at a particular agiary, Sidhva declared.

"Though born with a silver spoon, it is Mistry’s own busi­ness acumen that has led him to success,” opined Bombay Parsi Punchayet (BPP) chairman Minoo Shroff who has known Mistry since his college days, both having entered St Xavier’s College in the same year. Shroff ascribed Mistry’s business prosperity to "his great knack for picking the right advisors, his nose for oppor­tunity, his ability to exit unviable businesses at the right time and his non-overbearing, very approachable manner.”

"I am overwhelmed by the praises. I do not think I deserve them,” said Mistry in his response. "I wish I were young again. There are exciting opportunities in India and abroad.” The WZCC provides an appropriate platform for budding Zoroastrian en­trepreneurs and at the request of the BPP, "we have contributed a sum of Rs 50 lakhs to the Venture Capital Fund to encourage young Zoroastrians to venture into industry.” Uphold the name of the community in business and in the professions, as we have in the past, maintaining high standards of business ethics, Mistry stated. Vague proposals for entrepreneurship are not enough. Be bold, be risk takers, be flexible, intuitive, trust your gut feelings. Commitment, hard work and dedication to your goals will take you forward, Mistry counselled.

With the WZCC felicitation providing an opportunity to television channels to bring the billionaire into the limelight, NDTV Profit, among other channels, aired a brief profile later that night: "His work talks more than his interviews... Construc­tion is his first love,” the channel stated. Over the years, Mistry has been the focus of much market buzz as the largest individual shareholder (with an over 18 percent stake) in Tata Sons, the holding company of the multi million rupee Tata group. "His relations with the Tatas are a well-kept secret... Is he friend, business partner or merely the largest shareholder... he doesn’t talk about it. Neither of his sons found a place on the board of Tata Sons when he stepped down on turning 75,” the NDTV reporter analyzed. When asked why this was so, Mistry quietly responded that perhaps that was "a question you should ask the Tatas.”

The SP group has acquired in recent years a substantial stake in Forbes Gokak Limited, which has businesses in textile, engineering goods, home appliances and shipping agencies, and in Afcons Infrastructure Limited which undertakes large infrastruc­ture projects in India and abroad. A long-time member of the ACC (Associated Cement Companies) board as well as its chairman on two occasions, Mistry has also been a director of the Union Bank of India, Bombay Dyeing and Manufacturing Company Limited and the W. H. Brady group, among others.

While SP property development has been known to build beautiful buildings, an ongoing project which has generated much heat and dust is the construction of two of India’s tallest buildings at Tardeo — the 60-storey each, SD Towers (named after SD Corporation which is a joint venture between the Sha­poorji Pallonji group and promoter Dilip Thakker). To be con­structed as part of the larger MP Mill compound slum rehabilita­tion project, involving the rehabilitation of 2,500 slum fa­milies, the project has proceeded in fits and starts, amidst much heated debate about the safety of spiraling structures standing at the base of a hillside.

Though the philanthropy of the family has largely been appreciated, the SP group was catapulted into controversy last year within the Zoroastrian community by the proposed development by Shapoorji Pallonji and Company on the premises of the venera­ble Dadysett Atash Behram at Fanaswadi, where the family have been devotees for generations. The Rs 2.5 crore project to con­struct a seven-storey building in place of the old two-storey Dady­sett House was slated to be a gift to the cash-strapped Dady-sett Charity Trust, to house lower income Parsi families and mobeds on leave and license basis. Subsequent to the vociferous public meeting and high decibel levels of an orthodox section of the community, the SP group dropped in disgust their offer. "The community needs to be more broad based (broad-minded), otherwise we will more or less disappear,” Mistry said to Parsiana.