Ratan Tata, who passed away on Wednesday, did not appoint a successor to lead the trusts, which are committed to the founders’ mandate of using philanthropy as a means for social transformation.
Speculation is rife at Bombay House regarding the future leadership of the Tata Trusts, which collectively possess a 66 percent stake in Tata Sons, the holding entity of the $165 billion Tata group. This leadership will significantly influence the trajectory of the diverse conglomerate, spanning industries from salt to software.
Ratan Tata, who passed away on Wednesday, did not designate a successor to oversee the trusts, which are committed to the founders’ vision of utilizing philanthropy as a means for social change.
Nevertheless, sources indicate that his half-brother, Noel Tata, aged 67, has emerged as the frontrunner for the chairmanship of the two primary trusts: the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust. He currently serves on the board of trustees for both organizations.
Noel Tata joined the board of the Sir Ratan Tata Trust in 2019 and became a trustee of the Sir Dorabji Tata Trust three years later. His relatively recent appointments suggest he may have been prepared for this leadership role. Ultimately, the decision will rest with the boards of trustees of the two trusts.
Currently, Vijay Singh and Venu Srinivasan of the TVS Group serve as vice-chairmen of the Sir Ratan Tata Trust. In addition to Noel Tata, the trust’s members include J.N. Tata, H.C. Jehangir, Mehli Mistry, and Darius Khambata.
Singh and Srinivasan also hold the position of vice-chairmen at the Sir Dorabji Tata Trust. Alongside Mistry and Khambata, Pramit Jhaveri, the former CEO of Citibank India, is among the trustees.
Following the controversy surrounding Cyrus Mistry’s abrupt dismissal as chairman of the Tata Group in October 2016, Ratan Tata initiated efforts to develop a new governance framework aimed at preventing any individual from gaining unchecked authority over the group.
Consequently, in August 2022, the shareholders of Tata Sons ratified an amendment to a significant provision in its Articles of Association, establishing the requirement for distinct chairmen for the Tata Trusts and the holding company.
The revision to Article 118, which pertains to the selection of the chairman of Tata Sons, stipulates that “an individual serving as chairman of either the Sir Dorabji Tata Trust or the Sir Ratan Tata Trust, or both, shall not simultaneously be eligible to hold the position of chairman of the board of directors of Tata Sons.”
Prior to 2012, Ratan Tata held the chairmanship of both Trusts as well as the holding company. He relinquished his executive roles within the group upon reaching the age of 75.
The principle of power-sharing was articulated in the Articles of Association to prevent any individual from concurrently overseeing both the Trusts and the holding company in the future.
Following the amendment in 2022, Ratan Tata continued as chairman of the Tata Trusts, while N. Chandrasekaran assumed leadership of Tata Sons.
Noel Tata, who has maintained a low profile and is recognized for his modest leadership approach, was once considered a candidate to lead Tata Sons after Ratan Tata’s retirement as chairman of the group. However, he did not secure that role, which ultimately went to Cyrus Mistry.
Noel has been affiliated with the Tata group for over four decades and currently serves as chairman of Trent, Voltas, Tata International, and Tata Investment Corporation. Additionally, he holds the position of vice-chairman at Tata Steel and the Titan Company.
In Trent, he was appointed as a non-executive director in August 2010 and thereafter as chairman of the company in March 2014. Before that, he served as managing director of the company for more than 11 years, when he was responsible for the growth of Trent across formats.
He was associated with Tata International Ltd as managing director from August 2010 to November 2021, and helped the company raise its turnover from $500 million to over $3 billion.
