Mehli Mistry and Noel Tata in race for Tata trusts chairmanship: Report
As a trustee, Noel Tata already has a 66% share in Tata Sons, the Tata Group's holding company, through the Sir Dorabji Tata and Sir Ratan Tata Trusts.
PTC News Desk: The Tata Trusts, the philanthropic backbone of the Tata Group, are on the verge of appointing a new chairman following the passing of Ratan Tata. A critical meeting is scheduled for Friday, where Noel Tata, Ratan Tata's stepbrother, is anticipated to be the frontrunner for the prestigious role. The Tata Trusts play a vital role in the governance of the Rs 165 billion Tata Group.
Noel Tata: A strong contender for chairmanship
Noel Tata, a trustee of the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust—entities that collectively hold a commanding 66 per cent stake in Tata Sons, the group's holding company—is well-positioned for the chairman role. His extensive background within the Tata Group spans over four decades, and he currently holds several key positions, including Chairman of Tata International Limited, Voltas, and Tata Investment Corporation. Additionally, he serves as Vice Chairman of Tata Steel and Titan Company Limited.
Known for his understated leadership style, which contrasts with the more public persona of Ratan Tata, Noel has been instrumental in expanding the group's international presence, particularly in retail. As the former Managing Director of Trent, he transformed the company into a Rs 2.8 lakh crore retail giant. At Tata International, he significantly boosted the company's turnover from $500 million to over $3 billion.
Noel's involvement with the Tata Trusts has deepened in recent years; he became a trustee of the Sir Ratan Tata Trust in 2019 and joined the board of the Sir Dorabji Tata Trust in 2022, indicating a growing leadership role within the Trusts.
Mehli Mistry: Another key candidate
Mehli Mistry, a businessman and a close ally of Ratan Tata, has also emerged as a strong contender for the chairmanship. As the first cousin of the late Cyrus Mistry, he has been a steadfast supporter of Ratan Tata, especially during the controversial ousting of Cyrus Mistry as chairman of Tata Sons in 2016.
Involved with Tata Trusts for several years, Mehli was appointed to the boards of both the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust in 2022. His increased visibility and influence within the Trusts make him a significant figure in the race for leadership.
Mehli is a director at the M Pallonji Group, which operates in diverse sectors such as painting, dredging, logistics, shipping, finance, auto dealerships, and life insurance. His business acumen and longstanding relationship with the Tata Trusts enhance his candidacy.
The role of Tata trusts
The Tata Trusts are not merely philanthropic organizations; they hold a controlling stake in Tata Sons, which grants them substantial influence over the Tata Group's strategic direction. The Trusts play an essential role in governance and decision-making.
Ratan Tata, the last individual to simultaneously serve as chairman of both Tata Sons and Tata Trusts, made significant strides in the group’s global expansion. However, following amendments to the Articles of Association in 2022, the roles of chairman of Tata Sons and Tata Trusts will now be separated.
Decision-making process
The selection of the new chairman will be determined by consensus among the trustees of Tata Trusts. The current board includes two vice-chairmen: Venu Srinivasan, an industrialist from the TVS Group, and Vijay Singh, a former defense secretary, both of whom have been in their roles since 2018.
The new chairman will be tasked with balancing the philanthropic objectives of the Trusts with the commercial interests of Tata Sons. If Noel Tata is appointed, he will continue the tradition of having a Tata family member lead the Trusts, a practice supported by the Parsi community, which favors appointments within the Tata lineage.
Noel’s extensive experience and deep-rooted connections to the group position him as a likely candidate. His family's involvement with the Tata Group is also noteworthy. His son, Neville Tata, joined Trent in 2016 and now heads Star Bazaar, signaling the rise of the next generation.
His daughters, Leah and Maya Tata, are actively engaged with Tata Group companies, with Leah overseeing the Gateway brand at Indian Hotels and Maya working in new-age analytics and technology at Tata Digital. All three of Noel's children have been appointed trustees of various Tata Trusts, solidifying the Tata family's integral role in shaping the future of the group.
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