Shapoorji steps down as chairman of Afcons

Mumbai: In a broader indication of a succession plan at the 160-year-old Shapoorji Pallonji Group, Shapoorji Mistry, 61, has stepped down as the chairman of the group's "crown jewel" Afcons Infrastructure, while his son Pallon Mistry, 33, has been inducted into the board of the listed company.

The foundation for the succession plan was laid a few years ago when Pallon, the fifth-generation family member, was appointed to the board of the main firm Shapoorji Pallonji and Company (SPCL), expanding his responsibilities within the construction and real estate group. Pallon, who holds a masters from London's Imperial College, joined the SP Group in 2015. Shapoorji, who is the chairman of the SP Group, will be the chairman emeritus of Afcons, an honorary non-board position without any remuneration or fees.

The SP Group is equally owned by Shapoorji and his two nephews, Firoz Mistry and Zahan Mistry, children of his late brother and former Tata Sons chairman Cyrus Mistry. While both Firoz and Zahan hold directorships in SC Finance, one of the two holding companies of SPCL, their roles within the group are limited. The duo, who split their time between London and Mumbai, are involved in some finance and operational aspects of the business, sources said.

Their limited involvement is also influenced by Cyrus's decision to step down from his executive position at SP Group in 2012 after becoming Tata Sons chairman. Even after Tata Sons removed Cyrus from the chairman's position in 2016, he never returned to a formal role in SP Group. Shapoorji is the owner of the other holding company of SPCL, SP Finance. While Shapoorji did not specify the reason for stepping down from the chairmanship of Afcons, he emphasised that Afcons has always been the crown jewel of the SP Group.

"Looking back, I feel humbled by how far Afcons has come since its takeover by SP in 2000 - from a domestic player to an infrastructure company of global repute," he said.Shapoorji was on the board of Afcons for over 25 years, serving as chairman for 13 years. The SP Group acquired Afcons from ICICI Bank in 2000 and took the company public in Nov 2024. It now has a market cap of over Rs 15,500 crore. Afcons elevated Subramanian Krishnamurthy, who has been on the board since 2002 and previously served as vice-chairman, as its new chairman. On Pallon's board appointment at Afcons, Shapoorji said: A next-generation from the Shapoorji Pallonji family, "his close engagement with the board will strengthen the alignment of Afcons' long-term strategy with the SP Group's vision thereby paving way for deeper promoter involvement in shaping Afcons' future, while preserving the professional independence of its leadership". In addition to his roles at SPCL and Afcons, Pallon is a trustee of the Breach Candy Hospital. He previously served on the board of Sterling and Wilson Renewable Energy but stepped down after the family sold a stake to Reliance Industries.