Ratan Tata will now be chairman emeritus of Tata Group and chairman of Tata Trust, which has interests in charity and social service.
Mistry has been associated with Tata Group since 2006 and has been serving on the board of Tata Sons. Mistry comes at the helm of Tata Group with experience gained from running his family-owned $ 2.5 billion Shapoorji Pallonji Group, which is the leading shareholder of Tata Sons.
Industry leaders are optimistic that Mistry can carry forward Ratan Tata's legacy.
"Cyrus’s selection to head the Tata Group by the most distinguished business icons stands testimony to his abilities. His biggest challenge will be to preserve the legacy of the Tata brand while keeping the growth momentum going, which Ratan Tata initiated. His real asset is the fine quality of people that Tata employs," said Harsh Goenka, chairman, RPG Group.
Adi Godrej, chairman, Godrej group, said: “I feel Cyrus will be a worthy successor and will uphold the strong tradition of growth, globalisation and values of the Tata Group.”