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I was interested in ACC, but Guj Ambuja had a better offer: Mistry

The skyline of several Indian cities in India, and even outside, is dotted with constructions of Shapoorji Pallonji & Co. From Hotel Taj Intercontinental in Mumbai to the Indira Gandhi International Airport in New Delhi, from the Telco industrial complex in Pune to the Palace complex of His Majesty, the Sultan of Oman.

Its low-profile Chairman Pallonji Mistry hit the headlines in recent years for several reasons: being the largest shareholder in Tata Sons with an 18 per cent stake, to becoming the chairman of ACC to finally buying out the Tatas from Forbes Gokak.

In one of his rare interviews (his first in five years), Mistry spoke to Arijit De and Reeba Zachariah on Forbes Gokak, ACC, the Tatas and more.

What were the reasons for acquiring the Tatas' stake in Forbes Gokak?

I have been holding around 8 per cent stake along with the Tata group's holding of 14 per cent in the company. Then the Tatas decided they would not like to remain in the textile business as it was not one of their core areas. On the other hand, I always had a liking for the company right from the beginning and also as it has a good asset value. So, I told Ratan (Tata) that I would acquire the group's stake in Forbes Gokak.

With Pawan Kumar Sanwarmal making a counter offer, were you hesitant at any point?

Even when Sanwarmal came into the picture, it did not affect me because when I decide on a particular thing, I am determined to go after it and get it. Today, we hold about 69.5 per cent in the company.

Do you intend to bring any changes in the working structure/style of the company?

No. With the Tatas exiting the company, their nominees have stepped down from the board. I have taken over as the chairman of the company. My son Shapoor was already on the board while my other son Cyrus will soon be joining the board.

However, we will be hands off and Forbes Gokak will continue to be professionally managed as it always was. We will not interfere.

What would happen to the company's textile business? Obviously the Tatas do not see much future in it.

That is their (Tatas') decision. Even though the textile business is going through a rough patch, I think it has a bright future.

I will support it completely and will make whatever necessary investments that are required in the future.

But most see future only in the branded apparels business?

Forbes Gokak has Campbell Knitwear in its fold. We will take the necessary steps in due course.

What are your plans for Eureka Forbes? You are looking at buying out Electrolux's 40 per cent stake.

Another major attraction for Forbes Gokak was certainly Eureka Forbes. The company is doing very well and has a huge potential for growth.

Is there any way you can unlock value in Forbes Gokak?

Few people know that Forbes Gokak has huge real estate assets. We could easily unlock value in these assets.

It has a large chunk of land in the centre of Baroda city. Swadeshi Mills also has a lot of land in Mumbai and after the problems are resolved, we can make money there also. Remember, our core competence is construction.

You were once interested in ACC, and the cement business is related to the construction business. So would you be looking at it again?

No. That is a closed chapter - I don't hold any shares in ACC any more. I was interested initially in ACC, but when Gujarat Ambuja offered the Tatas such a good price... I think Rs 370 against the market price of Rs 120! I myself told the Tatas to sell their stake to Gujarat Ambuja.

You have been a close friend of Ratan Tata. With the Tatas identifying and exiting their non-core businesses, would you be keen on picking up other companies as well?

It all depends upon the activities of different companies. I do not hold any stake in other companies of the Tata group except in Tata Investment Corporation, where my holding is below 5 per cent.

To answer this specific question, my answer would be in the negative as their businesses don't quite fit with our core competence.

You are the largest shareholder in Tata Sons. Would you be looking at divesting your stake in the company?

No. It has been a very good investment. And look at the valuation now! With Tata Consultancy Services planning to go public at some stage the returns would be even better.

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