The successor of Ratan Tata, chairman of the $71-billion Tata Group, would be selected by March next year, a top Tata Group official said.
Yesterday, one of India’s most prestigious business groups had said it had formed a committee of five members, including one from outside the group, to steer a selection process for the coveted post.
R K Krishna Kumar, an executive director Tata Sons, the group’s holding company, said the new head would be working with Ratan Tata for six to seven months. He was speaking on the sidelines of the annual general meeting of group company Indian Hotels, in Mumbai.
Krishna Kumar is a trustee of the Sir Dorabji Tata Trust, the Sir Ratan Tata Trust and chairman of Tata Coffee, Infiniti Retail, Tata Realty and Infrastructure, Casa Décor, Tata Housing and Development Company. He is also vice-chairman of Tata Tea and Indian Hotels.
The Tata Group, founded in 1868, runs leading vehicle maker Tata Motors, software services firm Tata Consultancy Services, private sector power producer Tata Power, and the world’s seventh-largest steel maker by output Tata Steel.
Though names of the committee members have not been officially disclosed, people familiar with the development said the committee was likely to include R Gopalakrishnan and R K Krishna Kumar, both executive directors of Tata Sons; N A Soonawala, who retired last month and will represent Sir Dorabji Tata Trust; and A N Singh, managing trustee of Sir Dorabji Tata Trust and J R D Tata Trust. The external candidate is likely to be Nusli Wadia, an independent board member of Tata Steel and Tata Motors, and a long-time friend of Ratan Tata, although the name of former Hindustan Unilever Chairman Keki Dadiseth is also doing the rounds in some circles.
Ratan Tata will play only an advisory role and will not be part of the selection panel.
These announcements come within days of Noel Naval Tata, half-brother of Ratan Tata, being moved into a new role within the group. Noel, who is seen as one of the contenders for the top post, recently resigned as the managing director of retail firm Trent and joined Tata International in the same position.
He was appointed the 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 Tata 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. Noel Tata is one of the strongest contenders for the coveted post of the next chairman.
