Noel Tata appointed chairman of Tata Trusts

Ratan Tata, who passed away earlier this week, had served as chairman of the Tata Trusts, which hold a 66 per cent stake in Tata Sons, the group’s holding company.

• EasternEye
• 11 October, 2024

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By: EasternEye

NOEL Tata, the half-brother of the late Indian tycoon Ratan Tata, was appointed on Friday as the new chairman of Tata Trusts. The philanthropic institutions under Tata Trusts hold indirect control over the £126 billion Tata Group, which Ratan Tata helped transform into a global conglomerate.

Ratan Tata, who passed away earlier this week, had served as chairman of the Tata Trusts, which hold a 66 per cent stake in Tata Sons, the group’s holding company. Tata Sons oversees the operations of key companies within the group, including Tata Consultancy Services and Tata Motors, which owns Jaguar Land Rover.

A statement released by Tata Trusts announced Noel Tata’s appointment, effective immediately. Noel Tata, who has been associated with the group for decades, expressed his gratitude, stating that he was “deeply honoured and humbled by the responsibility” and looked forward to continuing his half-brother’s legacy.

Noel Tata is known for his role as chairman of Trent, the conglomerate’s successful retail venture, and is also a trustee of Tata Trusts. Tata Trusts, founded in 1892, plays a key role in philanthropic efforts, funding initiatives in healthcare, housing, and education, but does not influence the day-to-day operations of the Tata group’s listed companies.

Tata Sons, the parent company, oversees 30 firms across various sectors, including consumer goods, automobiles, airlines, and hospitality. Under its umbrella are brands like Jaguar Land Rover, Tetley Tea, and Tata Consultancy Services. Although Tata Trusts holds a majority share in Tata Sons, it does not have a direct say in operational matters, but its influence is significant.

Noel Tata has also served as vice chairman of Tata Steel and is credited with leading Tata International to expand its turnover from £381 million to over £2.29 billion. Despite maintaining a low public profile, Noel Tata is regarded as highly knowledgeable about the group’s operations.

Sanjay Singh, a former Tata Sons executive, praised Noel’s leadership, saying, “He has kept a low profile so the outer world doesn’t know him well, but he is quintessential Tata.”

The role of Tata Trusts is not always visible, but its power was highlighted in 2016 during a dispute between Ratan Tata and then-chairman of Tata Sons, Cyrus Mistry, which eventually led to Mistry’s ouster. Noel Tata, who is married to Mistry’s sister, also has familial ties within the business.

Tata Trusts plays a powerful role in selecting board members at Tata Sons, with trustees having veto power over key decisions. Despite not being obligated to consult the Trusts, Tata Sons has a history of coordination between its leadership and the philanthropic arm.

The Tata family, part of India’s Parsi community, has long been involved in charity work, with much of the group’s dividends going to philanthropic causes. The Tatas, who follow the Zoroastrian faith, have embedded principles of charity and service into the group’s ethos since its founding by Jamsetji Tata in 1868.