Half-brother Noel to succeed Ratan as chairman of all-powerful Tata Trusts

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MUMBAI: Noel Tata (67), half-brother of legendary late Ratan Tata, has been appointed the new chairman of Tata Trusts, the largest public charitable foundation of the country that collectively owns a controlling 66 per cent stake in Tata Sons, the holding and promoter firm of the diversified Tata Group.

Recognised for his understated leadership style, Noel is also the chairman of Tata Trent and vice-chairman of Tata Steel. Tata Trusts comprises two main charities, Sir Ratan Tata Trust and Sir Dorabji Tata Trust, which oversee 12 other allied trusts.

Noel is already a trustee of Sir Ratan Tata Trust and Sir Dorabji Tata Trust. “I am deeply honoured and humbled by the responsibility 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 said after his appointment as the chairman. Ratan Tata, who passed away two days ago at the age of 86, never married and didn’t even name a successor at Tata Trusts, which approved Noel’s appointment today.

Analysts believe Noel’s appointment is a sign of continuity as someone from the Tata family is back at the helm of the $165 billion salt-to-software conglomerate. The analysts said the leadership of Tata Trusts was crucial not only for its philanthropic efforts, but also for shaping the future direction of Tata Sons. Tata Trusts earns dividends from Tata Sons, but has no direct say over its operations. However, it appoints one-third of the directors to Tata Sons who have the veto power over board decisions.

Noel’s journey with the Tata Group began in 1999 and he has since played a pivotal role in expanding its retail arm Trent, besides focusing on international operations.

As Noel steps into his new role, the combination of his leadership with that of Tata Sons chairman Natarajan Chandrasekaran is being seen as a powerful force to steer the Tata legacy forward.

According to economist Omkar Goswami, “The choice (Noel) was obvious as he is from the founding family, experienced as well as knows the legacy.”