Noel Naval Tata, 67, half-brother of the late Ratan Tata, has been unanimously appointed as chairman of all Tata Trusts, effective immediately. The appointment was made in a meeting of all the trustees of the Tata Trusts held here today.
“I am deeply honoured and humbled by the responsibility that has been cast on me by my fellow trustees. I look forward to carrying on the legacy of Ratan N Tata and the founders of the Tata Group. Founded more than a century ago, the Tata Trusts are a unique vehicle for undertaking social good. On this solemn occasion, we rededicate ourselves to carrying on our developmental and philanthropic initiatives and continuing to play our part in nation building,” Noel Tata said in a statement after the meeting.
In a separate meeting held earlier in Mumbai, the trustees of all Tata Trusts also condoled the demise of Ratan N Tata, chairman, Tata Trusts, and recalled his yeoman service not only to the Tata Group but also to nation building.
The Tata Trusts currently own a 66 per cent stake in Tata Sons, the holding company of the Tata group of companies. Noel, who is a trustee of key Tata Trusts including Sir Ratan Tata Trust and Sir Dorabji Tata Trust, is married to Aloo, daughter of the late billionaire Pallonji Mistry, whose family owns an 18.4 per cent stake in Tata Sons. Ratan Tata and the late Cyrus Mistry, former chairman of Tata Sons and son of the late Pallonji Mistry, engaged in a contentious legal battle following Mistry’s removal as chairman of Tata Sons in October 2016. The dispute ended in 2021 when the Supreme Court ruled in favour of the Tatas, affirming that Mistry’s removal was legal.
Noel remained neutral during the Tata-Mistry fight, and his appointment as chairman of Tata Trusts is anticipated to improve relations between the two families. “We have to wait and watch how the relations between the two families go from here. With the change in leadership, this may change for good,” said a Tata family friend, asking not to be quoted.
Noel is currently chairman of retail major Trent Ltd, which has seen a sharp jump in its share prices by 6,000 per cent over the past decade as the company expanded across India, riding the wave of consumption. Noel is also a director on the boards of Tata Steel and Voltas.
“Noel is the right choice to lead the Tata Trusts. I am expecting him to be inducted onto the board of Tata Sons soon. He has done a good job in creating the retail business of the Tata Group. Going forward, his children Leah, Maya, and Neville should also be inducted into the main Tata Trusts,” said HP Ranina, noted lawyer and a prominent voice of the Parsi community.
“As Noel will be busy with Trent and Voltas, I believe Mehli Mistry, a Tata Trusts trustee, will take additional responsibilities for the day-to-day running of the Trusts,” Ranina said.
The Tata Trusts wield considerable influence over Tata Sons, the holding company of the Tata Group. The Tata Trusts have the rights to nominate three representatives on the board of Tata Sons and enjoy veto power on all decisions.
At present, TVS Group chairman emeritus Venu Srinivasan, and Vijay Singh, a former bureaucrat, represent the Trusts on the Tata Sons board. Noel’s children, Maya, Neville, and Leah were appointed as trustees of Tata family-linked charities in 2022.
Interestingly, when the Tata Group was looking for a successor to Ratan Tata in 2011, Tata hinted to a foreign newspaper that Noel lacked the necessary work experience, which contributed to him not being considered for the top position.
In the financial year ended 2024, Tata Trusts received its highest-ever dividend of Rs 933.4 crore from Tata Sons, compared to Rs 466.7 crore received in financial year 2023 – a jump of 100 per cent. The Trusts allocate their dividend income to various charitable initiatives, including healthcare, water access, rural development, and education. According to the Tata Trusts’ 2023 annual report, the Trusts distributed 48.5 per cent of their funds for healthcare, 16.9 per cent for rural upliftment, and 16.5 per cent for education. Another 10.4 per cent of the funds were allocated to institutions, with the rest for water, urban poverty alleviation, and energy.
With Noel at the helm of Tata Trusts and N Chandrasekaran as executive chairman of Tata Sons, the group is currently investing billions in new ventures, including semiconductors, airlines, and financial services. Additionally, they are planning to list their financial services subsidiary, Tata Capital. The group is also working to achieve profitability in its airline and online retail businesses.
Set up in 1892 by Tata Group founder Jamsetji Tata, Tata Trusts have spent heavily in the fields of education and healthcare. Of the 66 per cent stake in Tata Sons, Sir Dorabji Tata Trust owns 27.98 per cent, while Sir Ratan Tata owns 23.56 per cent. The RD Tata Trust owns 2.19 per cent, and the Tata Education Trust and Tata Social Welfare Trust own 3.73 per cent each. The JRD Tata Trust owns a 4.01 per cent stake in Tata Sons.
First Published: Oct 11 2024 | 6:30 PM IST