Resigns as Trent MD to become non-executive vice-chairman, appointed MD of Tata International.
Noel Naval Tata, 53, today added another interesting chapter to the Tata Group’s succession story. The half-brother of Ratan Tata has resigned as the managing director of retail firm Trent, and joined Tata International, which handles the group’s overseas trade, in the same position.
Tata International did not have an MD so far and was led by Chairman B Muthuraman. Noel will also continue to be Trent’s non-executive vice-chairman, another newly-created position. Today’s move comes a month after he was appointed non-executive chairman of Tata Investment Corp. Ltd, a listed investment firm that has a substantial holding in Tata Group companies. He had taken over from N A Soonawala, a trusted lieutenant of Ratan Tata.
Noel is a graduate of Sussex University and has an MBA from Insead in Fountainbleau, Paris. He is the son-in-law of Pallonji Mistry, the largest single shareholder in Tata Sons, the controlling arm of the diversified Tata Group, with an 18 per cent stake. Mistry’s sons, Shapoor and Cyrus, are on the boards of Indian Hotels and Tata Power. Cyrus is also a director of Tata Sons.
Observers said Noel is as low-profile and introverted as Ratan Tata was before being forced into the limelight, and prefers to spend much of his time on the shop floor rather than board rooms. He also hates suits and pin-stripes and his standard response to most invitations to corporate dos is a polite 'no’.
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Ratan Tata’s move to the corner office in the Tata Group was also a long one. He was assigned to various companies before being appointed director-in-charge of the National Radio & Electronics Company (Nelco) in 1971. It took him 10 more years to become chairman of Tata Industries and another 10 years for taking over the chairmanship of Tata Sons from J R D Tata.
Ratan Tata has said many times in the past that he would not continue beyond December 2012 when he reaches the age of 75, the group’s retirement age for non-executive chairmen. Meanwhile, speculation about his successor just refuses to die down. Earlier this month, at the annual general meeting of Tata Consultancy Services, Tata said in reply to a shareholder’s query that he was also human and would like to move on and give others a chance to take his place.
| STEADY CLIMB # Half-brother of Ratan Tata and son-in-law of Pallonji Mistry, the largest single shareholder of Tata Sons with 18% stake # Graduate of Sussex University with an MBA from Insead in Fountainbleau, Paris |
| CURRENT ASSIGNMENTS Noel Naval Tata Non-Executive Vice-Chairman of Trent, Chairman of Tata Investment Corp and MD of Tata International |
| PREVIOUS ASSIGNMENTS December 1997: MD of Lakme Exports March 1999: MD, Trent October 2003: Director, Voltas November 2003: Director, Titan Industries |
A press release issued by the Tata Group said Noel has overseen the profitable growth of Trent from a single-store company in 1998 to over 90 stores across its retail formats. Under his leadership, the consolidated turnover of Trent has increased from Rs 8 crore in 1998-99 to Rs 1,137 crore in 2009-10. Noel will continue to remain on the board as non-executive vice-chairman and, consequently, will continue to be involved in the overall management. A new chief executive will be appointed “as soon as possible,” the release said.
Tata International is in a wide range of businesses including leather and trading of a variety of products like minerals, steel, ferroalloys and engineering products. Through its 100 per cent subsidiary, Tata Africa Holdings, it is present in 11 countries in Africa. The company is engaged in distribution and marketing of commercial vehicles and other products and acts as the lead arm to help other Tata Group companies enter the growing African market. Tata International is also present in China, South East Asia and West Asia.
Under Noel, Tata International is expected to take on an aggressive growth path, strengthening its leather business by organic expansion and through acquisitions, the statement said. The company will acquire resources and trade in minerals, consolidate and grow its position in Africa and enter new geographies, it added.
The Tata Group has over 90 companies, of which 28 are publicly listed. The group has operations in over 85 countries.