Following the demise of Ratan Tata, the Tata Group began a new chapter with the appointment of Noel Naval Tata as Chairman of the Tata Trust.  Noel is an Indian-born Irish businessman. Noel Tata’s leadership will include the ruling power of Tata Trusts, Trent, and Tata Investment Corporation. He is now also the managing director of Tata International and the vice chairman of Titan Company and Tata Steel. Noel Tata's leadership is expected to shape the future of the Trust and the Tata Group's broader philanthropic activities.

Who is Noel Tata?

Noel Tata, born in Mumbai in 1957, is the half-brother of Ratan Tata. While Ratan is the son of Industrialist Naval Hormusji Tata's first wife, Sooni Commissariat, Noel is the son of Naval Tata's second wife, Simone Tata (born in Switzerland). Noel, despite his Irish citizenship, has devoted his career primarily to the Tata Group, demonstrating a deep commitment to Indian business.

Career

Noel Tata's career has left a trail of significant accomplishments, especially in the retail sector. As chairman of Trent Limited, the retail arm of the Tata Group, he transformed the company from a few single stores to 700 stores across India. His strategy of emphasizing profitability over rapid expansion ensured that each store operated sustainably before considering further growth. Before joining Tata, he gained valuable experience and honed his business skills at Nestlé in the UK.

Education

Noel Tata's educational journey began in Mumbai, where he completed his early schooling. He then moved to the UK to commence his college life and earned a degree from the University of Sussex. To further hone his business acumen, he attended an International Executive Program at INSEAD Business School in France.

On the family front, Noel is married to Aloo Mistry, daughter of the late Indian business tycoon mogul Pallonji Mistry, and their marriage brings together two influential families, further entwining the legacies of the Tata and Mistry families. Interestingly, Aloo’s brother, Cyrus Mistry, succeeded Ratan Tata as chairman of Tata Sons until his removal in 2016, leading to Ratan Tata's temporary return.

Noel and Aloo Tata have three children: Leah, Maya, and Neville. Leah started her marketing career at Taj Hotels, while Maya gained experience at Tata Opportunities Fund and now works at Tata Digital. Neville has worked in the retail sector at Trent and is married to Mansi Kirloskar, a key figure in Kirloskar Technologies.

More about Tata Trust

Tata Trusts wields considerable influence within the Tata Group. It possesses a 65.9 percent stake in Tata Sons Pvt Ltd, the parent company of the Tata Group, whereas 12.87 percent is held by various Tata Group firms, and 18.4 percent is owned by the Shapoorji Pallonji family. Tata Sons manages 30 companies across a wide range of sectors, such as consumer goods, hospitality, automotive, and aviation.

Tata Trusts, which oversees 14 different trusts, holds control over Tata Sons. The Sir Dorabji Tata Trust and Sir Ratan Tata Trust are the two main trusts that collectively own over 50 percent of Tata Sons. Although Tata Trusts does not directly run Tata Sons, it exerts influence through an executive committee it appoints, which Ratan Tata chaired. This committee comprises members Venu Srinivasan, Vijay Singh, and Mehli Mistry. Tata Trusts is also responsible for appointing one-third of the board members of Tata Sons, who hold veto rights on significant decisions. A former advisor remarked that Tata Trusts had maintained significant power over the operations of Tata Sons, operating discreetly behind the scenes.

How Noel Tata was chosen to chair Tata Trusts?

Noel Tata was once viewed as a likely candidate to succeed Ratan Tata as the leader of Tata Sons during his retirement in 2012. However, Cyrus Mistry, who is his brother-in-law, was selected for the position instead. In 2016, after a conflict arose between Ratan Tata and Mistry, Mistry was removed from his role as chairman and was succeeded by Natarajan Chandrasekaran. Mistry tragically passed away in a car accident in 2022. Recently, Noel Tata was “unanimously” appointed to lead Tata Trusts during a meeting held in Mumbai. An executive from Tata noted that "many long-time members" of the organization backed his selection to manage the Trusts.

Tata Sons, Tata Group, and Tata Trusts

The structure of the Tata Empire is intricate and challenging to grasp, comprising Tata Sons, Tata Group, and Tata Trusts. To clarify, Tata Sons serves as the parent company for the Tata Group, which encompasses over 100 operational companies. Tata Sons is overseen by Tata Trusts, which possesses a 66 percent share of the company through a network of 14 trusts.

Essentially, Tata Sons functions as a holding company with extensive assets, including land, tea plantations, and steel factories. Its main revenue sources are dividends and brand loyalty fees sourced from its subsidiaries.

 

At present, Tata Trusts is overseen by 13 trustees. This group includes trustees from both the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust. Five individuals occupy trustee positions in both trusts: former Defense Secretary Vijay Singh, Venu Srinivasan from the TVS Group, Noel Tata, businessman Mehli Mistry, and lawyer Darius Khambata. Other trustees such as Pramit Jhaveri, the former CEO of Citi India, and Jimmy Tata, Ratan Tata's younger brother, are also part of the board of trustees. Due to its controlling interest, Tata Trusts effectively wields complete authority over Tata Sons, the organization that oversees the Tata Group. Hence, no major decision can be made by Tata Sons without receiving approval from Tata Trusts, establishing it as the supreme governing entity of the Tata conglomerate.

Tata Group’s Rules

Under the group's rules, the two primary trusts are allowed to nominate one-third of the directors for Tata Sons. They possess the ultimate authority to appoint or dismiss these directors. These significant powers were conferred upon the two trusts when Ratan Tata revised the group's regulations after stepping down in 2012. Such amendments were enabled by the Indian government's revision of the Companies Act, which permitted Tata Trusts to vote directly on the board matters of Tata Sons. As chairman of Tata Trusts, Noel Tata now wields considerable influence over Tata Sons, particularly since the Trusts hold a controlling interest in the company. However, it is important to emphasize that Noel Tata does not personally possess these 66 percent shares in Tata Sons; they belong to the Trusts. His ownership stake in the company is a different issue altogether.