In a significant move, Noel Tata has joined the Tata Sons board as a nominee of Tata Trusts, marking the first time in 13 years a Tata family member holds a position in both Tata Trusts and Tata Sons. This transition follows the recent passing of Ratan Tata, who held a unique role as chairman of Tata Trusts and chairman emeritus of Tata Sons. Noel Tata’s appointment indicates a new phase for the Tata Group as it redefines its leadership strategy.
Noel Tata, aged 67, now serves alongside TVS Chairman Emeritus Venu Srinivasan and former defense ministry official Vijay Singh as one of Tata Trusts’ three nominee directors on the Tata Sons board. This comes after an online resolution was passed during a virtual Tata Sons meeting held just before Diwali.
A Shift in Leadership Dynamics
Ratan Tata’s death has left a legacy, and Noel Tata’s inclusion on the board brings a refreshing yet familiar presence. Ratan Tata was instrumental in shaping Tata’s expansive reach and was highly involved in both Tata Trusts and Tata Sons. However, in 2022, the board amended its Articles of Association to prevent the same individual from leading both entities. This update ensures that leadership roles are more balanced across Tata’s diversified businesses, and Noel Tata’s appointment reflects this balanced approach.
Noel Tata has previously held prominent positions in Tata Group companies, including his current roles as non-executive director and chairman of Tata Investment Corp, Trent, and Voltas. His responsibilities also extend to Titan and Tata Steel, where he serves as vice-chairman and non-executive director.
A First in Over a Decade: Family Returns to Dual Tata Roles
Noel Tata’s appointment on the board of Tata Sons marks the return of a Tata family member to such dual roles for the first time since 2011. This move gives the Tata family a renewed role in the governance of Tata Trusts, which holds a 66% stake in Tata Sons.
According to Tata Sons’ Articles of Association, Tata Trusts can nominate one-third of the directors to the Tata Sons board. Currently, Tata Sons’ nine-member board includes two executive directors, including Chairman N Chandrasekaran, three non-executive directors, and four independent directors. Noel Tata’s dual position allows him to contribute more effectively to both Tata Trusts and Tata Sons, ensuring aligned goals across the group.
A Proven Track Record in Tata’s Retail and Consumer Sectors
Noel Tata’s journey with Tata Group companies spans decades and has been marked by significant achievements. Since 2014, when he became chairman of Trent, the retail segment of Tata Group has seen substantial growth under his leadership. Trent’s revenue grew by over 430%, from ₹2,333 crore in FY2014 to ₹12,375 crore in FY2024, with the company also transitioning from a ₹19 crore loss to a robust profit of ₹1,477 crore.
Similarly, since assuming the chairmanship of Voltas in 2017, Noel Tata has overseen a two-fold increase in the company’s revenue, which went from ₹6,404 crore in FY2017 to ₹12,481 crore in FY2024. This growth is reflected in the company’s stock performance, which has surged by almost 300% during this period.
Tata Investment Corp, another company where Noel Tata holds a non-executive chairmanship, focuses on investments in listed and unlisted equities. It has delivered a remarkable 705% return over the past five years, outperforming the Nifty’s 102% gain in the same timeframe.
Tata’s Approach to Retirement and Continuity
While the Tata Group mandates executives to step down from executive roles at 65 and board positions at 70, there are no age limits for trustees or chairpersons in Tata Trusts. Noel Tata, who stepped down from executive roles upon reaching 65, continues to serve in non-executive positions, ensuring continuity without breaching Tata Group’s retirement rules. Experts close to the group note that his non-executive role does not raise any legal concerns, allowing him to continue his contributions to Tata Group’s growth.
What Noel Tata’s Appointment Means for Tata Group’s Future
With Noel Tata’s appointment, Tata Group is set to benefit from his experience and deep understanding of the family’s legacy. His track record in retail and consumer-focused segments offers valuable insights as Tata Sons navigates an era of digital transformation and expansion in diverse sectors. His influence over Tata Trusts and Tata Sons brings a coherent vision to the group’s businesses, which now encompass a range of industries, from retail to technology to investments.
Noel Tata’s role in this new phase of Tata Group’s evolution signals stability and a continued commitment to the principles that have defined Tata’s journey. As the group transitions post-Ratan Tata, Noel Tata’s influence could be instrumental in both preserving Tata’s legacy and fostering innovation for future growth.
