If Ratan Tata loves flying supersonic jets in azure skies, his stepbrother, Noel, likes to drive at 240 km/hour on the Mumbai-Pune expressway, to the utter disbelief of his co-passengers. Not surprisingly, the journey is complete in one hour and twenty minutes, against the usual three hours.
In their businesses too, both have covered significant ground in the last few years. While Ratan spread the Tata business across the globe, 51-year-old Noel has built Trent into a profitable retail player with the Westside apparel chain and Star Bazaar hypermarkets.
Unlike many other retailers, who opened stores and then closed them equally fast, Noel, the managing director of Trent, has grown his business slowly but steadily. “We may not be as fast as others, but we are among the only few profitable retailers in the country today,” said a company official.
However, on the merger and acquisition front, Noel, married to reclusive billionaire Pallonji Mistry’s (who owns 18 per cent in Tata Sons) daughter, has shown that he can be nimble-footed and move more swiftly than others: He acquired Landmark book and music store in 2005 beating others like Kishore Biyani, inked a deal with Benetton to bring the premium brand Sisley in India and has now tied up with the UK’s largest retailer Tesco for back-end support for his retail stores.
Both Ratan and Noel have similar personalities, say Tata group insiders – media-shy, low-key, no-nonsense, sharp and in love with speed. More important, both “do the right things at the right time”.
“When RNT (as Ratan is called within the group) became Tata Sons Chairman in 1991, Tata group seniors and outsiders were sceptical as to how he will run the behemoth. Look at how he built the empire,” said a Tata official. “Similarly, Noel was seen as a reluctant man in the corporate world. See, how he has transformed Trent from the time he took over, in 1999.”
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The tie-up with Tesco was a coup of sorts for Noel. The retailer had held discussions with a dozen Indian bigwigs such as Bharti and DLF, but decided to tie-up with Trent. Noel and a team of about 25 worked on the deal. “Everybody worked together but in a confidential manner. We did not disclose it even to our wives,” said a person close to him.
Looking ahead, Noel, who is on the board of several Tata companies such as Voltas, Titan and Tata Investment Corp, believes it is the right time for Trent to grow with value-for-money products to beat inflation. The logic is sound but contrarian as most retailers have decided to go slow on expansion, thanks to high interest rates, the rise in inflation and economic slowdown.
Within a year, Trent will open 11 new Westside stores, six Landmark stores and 50 new Star Bazaars with an investment of Rs 2,050 crore. It has already announced 30 franchisee stores to deal with the problem of soaring rentals and real estate shortage.
With his plans on fast track, there is a good chance that Noel may come out of his shell. At the opening of a recent Star Bazaar in Mumbai and at the Tesco tie-up, he appeared to be more forthcoming with the media and gave confident sound bytes.
Noel, son of Simone (the founder of Lakme and Trent) and Naval Tata, is also in the reckoning as the successor of Ratan. “He is the right contender. Like Ratan, he has a great eye for detail and believes in his people and makes them truly empowered. Only time will prove his worth,” said a Tata group veteran.
People working with him vouch for his leadership: “Even when other retailers are offering top-dollar salaries, we like to stick to the group due to the emotional bond we have with him and the company,” says a colleague.