 "Noel Tata joins Tata Sons board, first to hold dual positions since 2011")
In a notable shift within the Tata Group, Noel Tata was appointed to the board of Tata Sons on Friday (Nov 1). This appointment comes after Noel Tata was recently named chairman of Tata Trusts, the controlling entity of Tata Sons. The decision was finalised through an online resolution during a virtual Tata Sons board meeting held on Diwali eve, reported The Economic Times citing sources.
Noel Tata’s appointment is noteworthy because he became the first family member since 2011 to concurrently serve on the boards of both Tata Trusts and Tata Sons. As the Tata Trusts hold a commanding 66 per cent stake in Tata Sons, this dual role signals an era of closer family oversight over the sprawling conglomerate’s operations.
Noel Tata’s background and relationship with Ratan Tata
Noel Tata, 67, is the half-brother of the late Ratan Tata and has long been recognised for his business acumen and success in steering Tata Group’s retail and investment ventures. As chairman of Trent and Voltas, and vice-chairperson of Titan and Tata Steel, Noel Tata has played a pivotal role in expanding the group’s retail and consumer-facing sectors.
He first joined Trent, retail arm of the group, in 2014, where he led an impressive transformation, increasing revenue by 430 per cent over a decade. His stewardship of Voltas since 2017 has similarly yielded growth, with revenue doubling and stock prices surging by nearly 300 per cent.
Transition and governance at Tata Group after Ratan Tata
Ratan Tata, who passed away recently, left a legacy of prudence and expansion, both as chairman of Tata Sons and as chairman emeritus of Tata Trusts. His leadership principles are expected to continue shaping the group, with Tata Trusts nominating a third of the board of Tata Sons as per the Articles of Association. This legacy endures as Noel Tata steps into the governance structure, meeting Tata Sons Chairman N Chandrasekaran to establish what insiders describe as a “healthy working relationship.”
The Tata Sons board, now composed of nine directors, includes two executive directors, three non-executive directors, and four independent directors. Alongside Noel Tata, Tata Sons board members nominated by Tata Trusts include TVS Chairman Emeritus Venu Srinivasan and former defence ministry official Vijay Singh. These individuals, along with industrialist Mehli Mistry, comprise the executive committee overseeing Tata Trusts, which influences the direction of Tata Sons.
A proven record of leadership and vision
Noel Tata’s accomplishments in the Tata Group companies reflect his strategic approach to business expansion and shareholder returns. Under his leadership, Trent saw a revenue leap from Rs 2,333 crore in FY14 to Rs 12,375 crore in FY24, transforming a Rs 19 crore loss into a Rs 1,477 crore profit. His chairmanship of Voltas has seen revenues climb from Rs 6,404 crore in FY17 to Rs 12,481 crore in FY24. Tata Investment Corp., which he also chairs, focuses on long-term equity investments, delivering a 705 per cent return over five years compared to a 102 per cent return from the Nifty index.
As Noel Tata, now 67, transitions further into a non-executive capacity in line with Tata Group’s age policies, he is expected to bring stability and continuity to the group’s governance. Notably, there are no age limits for Tata Trusts' trustees or chairpersons, allowing him to remain influential in the group’s strategic decision-making without the constraints applied to executive roles.