Following the passing of Ratan Tata, the honorary chairman of Tata Group, a significant question looms—who will lead the $165 billion conglomerate? Tata Group, a massive entity with a global presence in more than 100 countries, must now determine who will step up to fill the leadership void left by Ratan Tata.
Who Will Take Over Tata Trust?
Tata Sons, which holds ownership rights over all Tata Group companies, is primarily controlled by Tata Trust, which owns over 60% of its shares. With Ratan Tata no longer at the helm, the top position in Tata Trust is now vacant, and the board of trustees is tasked with selecting his successor.
Several names have been floated in the media, but it remains unclear who will take up the role. Noel Tata, Ratan Tata’s step-brother, is considered a likely candidate, although there are speculations that someone from the family of Cyrus Mistry, a former Tata Sons chairman, may also be in the running.
Could Noel Tata Take Over?
Noel Tata, a low-profile but significant figure in the Tata family, has often been seen as a potential successor to Ratan Tata. Currently serving as the chairman of Tata International, Noel has also led Tata Trent and Voltas in the past. His steady leadership style and long-standing experience within the Tata Group make him a strong contender for the chairmanship of Tata Trust.
The Role of Shapoorji Pallonji Group
Another significant player in this unfolding story is the Shapoorji Pallonji Group, which holds an 18.3% stake in Tata Sons. This group’s influence in the Tata Group cannot be overlooked, especially since Cyrus Mistry, from the Shapoorji Pallonji family, had served as the chairman of Tata Sons from 2012 to 2016. While the relationship between the two families has soured in recent years, the Shapoorji Pallonji Group’s stake gives it the power to sway board decisions.
Major Challenges for the Next Chairman
Whoever takes over as chairman of Tata Trust will face several significant challenges. One of the most pressing issues is the possible listing of Tata Sons on the stock exchange, following new Reserve Bank of India regulations. Another major task will be maintaining the group’s core values and business practices, which have been carefully nurtured by Ratan Tata.
Restoring relations with the Shapoorji Pallonji family could also be a priority for the new chairman. Easing the tension between the two sides could help alleviate internal conflicts and ensure smoother operations within the group.
In a world without Ratan Tata, the leadership of Tata Group is at a crucial turning point, and the selection of his successor will have a long-lasting impact on one of India’s most iconic business empires.
