Noel Tata Steps Up As New Chairman Of Tata Trusts Amid Leadership Transition

Noel Tata, is the half-brother of Ratan Tata who died at the age of 86 in Mumbai on October 9, emerged as a prominent figure in the transition. Noel Tata, currently the Chairman of Tata International, was being seen as a strong contender for the top role due to his deep ties to the family and his successful leadership of Tata International, Tata Trent, and Voltas. His experience managing various businesses within the group positions him as a key candidate

Tata Trusts has appointed Ratan Tata's step brother Noel Tata as its new chairman to head the philanthropic entities that hold the key to the sprawling Tata empire. The move was decided after a meeting on Friday morning to nominate a successor to late Ratan Tata.

The passing of Ratan Tata had created a leadership void at Tata Trusts, the philanthropic entities that control a large portion of Tata Sons, the holding company of the conglomerate. With the responsibility of choosing a successor now rested on the trustees, one name that had sparked widespread speculation was Mehli Mistry. A long-time associate of Ratan Tata, Mistry’s potential leadership has drawn attention due to the controversy surrounding him, particularly his tense relationship with the Mistry family and his alleged involvement in key disputes within the Tata Group.

Talking to Bizz Buzz, Tamal Majuimdar, an author, said: “He deserves the post and he is capable too for the same. The companies under him are doing well. Tata Investment and Voltas all are doing well. Moreover, he is already associated with two TATA trusts - Sir Dorabji Tata Trust and Sir Ratan Tata trust.

Noel Tata, is the half-brother of Ratan Tata who died at the age of 86 in Mumbai on October 9, emerged as a prominent figure in the transition. Noel Tata, currently the Chairman of Tata International, was being seen as a strong contender for the top role due to his deep ties to the family and his successful leadership of Tata International, Tata Trent, and Voltas. His experience managing various businesses within the group positions him as a key candidate.

Noel also has connections to the Mistry family, with Shapoorji Mistry, Chairman of the Shapoorji Pallonji Group (SP Group), being his maternal uncle. If Noel assumes leadership, there may be a chance for reconciliation between the Tatas and Mistrys, whose relationship has been strained since 2016. The rift began when Cyrus Mistry, a member of the SP Group, was abruptly removed as chairman of Tata Sons, leading to a prolonged and public legal battle that culminated in a Supreme Court ruling in Tata Sons' favor. This feud, which left relations between the two families severely damaged, has persisted despite the Mistrys holding an 18.37 per cent stake in Tata Sons.

Ratan Binani, a stock market expert said, “There will be no change in the working of the group. And it will go on the existing path as shown by Ratan Tata. We have full faith in the new leadership.”

For the SP Group, mending ties with the Tata family could provide a way to regain influence without the acrimony of recent years. With Ratan Tata no longer leading, there may be greater openness within Tata Trusts and Tata Sons to engage in dialogue and move past the conflict. The Indian business community may also view a potential reconciliation as a stabilizing force for Tata Sons, allowing the conglomerate to refocus on growth rather than disputes.

Arun Kejriwal a capital market expert and founder of KRIS said, “It’s business as usual as the house of Tatas as they have appointed a new chairman within 24 hours of the sad and untimely demise of Ratan Tata. From available names in the family to succeed Ratan, Noel was the most eligible candidate. His appointment comes as no surprise and would be well accepted by all stakeholders. We wish the best. ‘

Another name being speculated for leadership is Mehli Mistry, a long-time associate of Ratan Tata. However, his potential candidacy has drawn controversy due to his tense relationship with Cyrus Mistry and allegations involving his business dealings with Tata Power. However, Mehli Mistry has denied claims that his firm, M PALLONJI & Co, was awarded contracts by Tata Power without proper tender processes. Given his past with Cyrus Mistry, Mehli’s selection may not sit well with the SP Group which holds the second-largest stake in Tata Sons.