MUMBAI: Noel Tata, Ratan Tata’s half-brother, has been appointed chairman of the influential Tata Trusts, granting him indirect control over the $165-billion Tata Group, which operates in 100 countries, reports .
Ratan, who chaired the Trusts for three decades, did not designate a successor. Noel, who is half-French and an Irish citizen, was already a trustee of Tata Trusts.The 67-year-old’s appointment, effective immediately, was unanimously decided during a meeting in Mumbai.
Noel said his goal will be “carrying on the legacy of Ratan Tata and the founders of the Tata Group”. In a statement, he said, “I am deeply honoured and humbled by the responsibility that has been cast on me by my fellow Trustees.”
Move upholds tradition of a Parsi heading the Trusts
TOI had reported in its Oct 10 edition that Noel was most likely to helm Tata Trusts. Noel is the 11th chairman of the Sir Dorabji Tata Trust and the sixth at Sir Ratan Tata Trust, the primary entities within Tata Trusts which together own approximately 52% of Tata Sons, the holding company of the group. The appointment upholds the tradition of Parsis heading the Trusts in deference to the Zoroastrian community’s wishes. It also ensures that a founding family member leads the foundations that distributed $56 million (Rs 470 crore) to various social projects in FY23.
Conventionally, the chairman of Tata Sons has also held the position of chairman at Tata Trusts. However, this changed in 2012 when Ratan retired from Tata Sons but stayed on as chairman of Tata Trusts through subsequent leadership changes at Tata Sons. In 2022, Ratan introduced a new governance model, separating the two positions. Consequently, a Tata Sons chairman cannot simultaneously serve as chairman of Tata Trusts and vice versa.
Although the foundations’ influence over the business group is not always evident, the most striking example of that influence is from 2016, when Ratan disagreed with Tata Sons chairman Cyrus Mistry, resulting in the latter’s dismissal. The trusts appoint one-third of the directors to Tata Sons, who possess veto power over board decisions.
Noel is the third family member to lead Tata Trusts after his father Naval, who was chairman of Sir Ratan Tata Trust, and Ratan, who chaired both Sir Ratan Tata Trust and Sir Dorabji Tata Trust. Noel’s other half-brother Jimmy Tata is a trustee of Sir Ratan Tata Trust. Naval was adopted by the daughter-in-law of Jamsetji Tata, founder of the Tata Group. Jamsetji initiated charitable efforts that have since expanded to various sectors, including healthcare, rural development, education, water, and innovation, through more than a dozen trusts. In 2011, there was speculation that Noel would take over from Ratan on his retirement from Tata Sons. However, the position of chairman was given to Cyrus Mistry, Noel’s brother-in-law, and subsequently to N Chandrasekaran, a TCS veteran. With Ratan passing away on Wednesday, a vacancy arose at Tata Trusts. This time, the field was wide open for Noel.