Will Noel Tata take the mantle at Tata Trusts?

It could well now only be a matter of time before Noel Tata, Ratan Tata’s half-brother, steps into the chairmanship at two key Tata Trusts that controls the majority stake in Tata Sons, which is the holding company of the Group. 

While N Chandrasekaran’s will continue his leadership position as the chairman of Tata Sons, a role he has held since 2017, the focus certainly shifts to two key Trusts – Dorabji Tata Trust and Ratan Tata Trust, where Ratan Tata was the chairman after retiring from the holding company in 2012.

Noel Tata, Ratan Tata's half-brother, already serves as a trustee on the boards of both Sir Ratan Tata Trust and Sir Dorabji Tata Trust. There are other members who are Ratan Tata loyalists.

Sources suggest that one of the existing trustees may take over as chairman in the interim before Noel Tata assumes the role, or the trustees themselves could decide to nominate Noel directly for the top position.

“Noel is not a person who will assert his authority or insist on his name,” say sources.

Currently, Tata Trusts control 66% of the stake in Tata Sons. The Trusts are involved in philanthropic activities, including education and healthcare.

Ratan Tata, after retiring as chairman of Tata Sons in 2012, assumed the chairmanship of Tata Trusts. In fact, many say he was calling the shots from the Trusts. The late Cyrus Mistry had also mentioned about the dual power centers issue when he was dismissed as chairman of Tata Sons.

Noel Tata's name had often come up as a potential successor to Ratan Tata as chairman of Tata Sons, but he was overlooked because of his limited experience within Tata's operating companies.

When the selection committee was screening potential candidates, Ratan Tata himself acknowledged in an interview that Noel lacked sufficient experience. Finally, the late Cyrus Mistry emerged as a consensus candidate after the selection committee struggled to identify a suitable expatriate or internal Tata professional.

Noel Tata, currently the chairman of Tata International Limited, has been part of the Tata Group for four decades. He serves on the boards of various Tata Group companies, including as chairman of Trent, Voltas, and Tata Investment Corporation, and as vice-chairman of Tata Steel and Titan Company Limited.

Noel Tata is also the brother-in-law of the late Cyrus Mistry, as he is married to Mistry’s sister. At Tata Sons, the Mistry family has 18% plus stake, which gives them a voice to select the chairman. Cyrus was a part of the selection committee to choose Ratan Tata's successor.  Later, when he became the candidate, he recused himself.

Noel's son, Neville Tata, is also involved in some of the Tata Trusts as a trustee. Should Noel Tata assume the top position at Tata Trusts, it could pave the way for Neville to be a candidate to take charge of Tata Sons at some point in the future.

There are occasions in Tata’s history when a non-Tata has assumed the role of chairmanship of the Group. Between 1932 and 1938, Sir Nowroji Saklatwala took over as the chairman. Later in 2012, Cyrus Mistry came in, but his tenure was cut short in 2016. Currently, Tata Sons is under N Chandrasekaran’s leadership.