Tata Sons, the holding company of over USD 80 billion conglomerate Tata Group, Wednesday announced that Cyrus P Mistry, the 43-year-old Managing Director of Shapoorji Pallonji Group, will succeed Ratan Tata.

"The Board of Directors of Tata Sons at its meeting today appointed Cyrus P Mistry as the Deputy Chairman. He will work with Ratan N Tata over the next year and take over from him when Tata retires in December 2012," Tata Sons said in a statement.

This is as per the unanimous recommendation of the selection committee, it added.

Shapoorji Pallonji Group holds 18 per cent stake in Tata Sons.

Commenting on the appointment, Ratan N Tata, Chairman of Tata Sons, said: "The appointment of Cyrus P Mistry as Deputy Chairman of Tata Sons is a good and far-sighted choice.

"He has been on the Board of Tata Sons since August 2006 and I have been impressed with the quality and calibre of his participation, his astute observations and his humility."

Tata further said: "I will be committed to working with him over the next year to give him the exposure, the involvement and the operating experience to equip him to undertake the full responsibility of the Group on my retirement."

Mistry has been a Director of Tata Sons since August 2006. A Graduate in Civil Engineering from Imperial College, London, he also holds a Masters of Science in Management degree from the London Business School.