Noel Tata Is New Tata Trusts Chairman, Takes Over Philanthropic Leadership

Noel Tata has been appointed as the Chairman of Tata Trusts, people familiar with the development told NDTV Profit. With an experience of 40 years under his belt, he will take up the mantle after the group's patriarch Ratan Tata passed away.

The unanimous decision was made during a board meeting of Tata Trusts in Mumbai, where discussions focused on the succession plan for the philanthropic organisation, the aforementioned persons told NDTV Profit.

"In due course you will get to know who Noel was. I have very little doubt that in 15 years people will say Noel Tata was a towering guy. I think he is a low profile guy, he gets on with work, he is a persistent guy and he reaches his goal. The journey of Trent is an evidence of that," R Gopalakrishnan, former director of Tata Sons, told NDTV.

Gopalakrishnan said Noel sets his mind on the right thing to do, does his homework, and then goes about it. "Earlier people were saying Tatas were not in the retail, 10 years ago there were small bazar, big bazar, all sorts of other names were there, and now he has created a wonderful company that has gotten into Nifty 50."

Noel, the half-brother of the late Ratan Tata, emerged as a key figure within the Tata Group, having played significant roles in various Tata companies. He currently chairs several entities, including Trent, Tata International Ltd., and Voltas Ltd. As vice-chairman of Tata Steel Ltd. and Titan Co., Noel has been instrumental in driving the conglomerate's growth since he joined the Tata Group in the early 2000s.

Going ahead, he will chair the Tata Trusts, which own 65.3% of Tata Sons. Of the 14 trusts that make up Tata's philanthropic arm are two primary trusts— Sir Ratan Tata Trust and Sir Dorabji Tata Trust. Together, these entities hold over 50% of ownership in Tata Sons, reinforcing their influence over one of India's largest conglomerates.

Tata Trusts operates under a corporatised structure that includes an executive committee overseeing its functions, supported by a team of management professionals. Previously chaired by Ratan Tata, the committee now includes Venu Srinivasan and Vijay Singh as Vice Chairmen, along with trustee Mehli Mistry.

"In my limited understanding, practically nothing changes for the company with Noel stepping in—66% held by trust, 1% held by Noel Tata," said Neeraj Aggarwal, senior vice president of Vistra India, in a telephonic conversation with NDTV Profit.

Technically speaking, as chairman of the trusts, he will look into the objective of the trust, meaning what dividends will come in and how they will be used for the benefit of the society, Aggarwal explained.

"Apparently, he is in a very good relationship with the chairman of Tata Sons which means collectively both of them will work, Tata Sons will govern how the business will grow and how to work in the interest of the shareholders, so I think nothing is changing, and will see the next phase of growth under Noel Tata," he added.

On the topic of changes for Tata Group, Sanjay Asher of Crawford Bayley said "This is a very good step for Tata as a whole. Noel is a family man who understands the philosophy, as well as, is mature enough to take Tata Group to the next level. In my mind it is an excellent decision for Tata Group."

Noel Tata's three children—Leah, Maya, and Neville—were earlier appointed as trustees in multiple trusts associated with the Sir Ratan Tata Trust and Sir Dorabji Tata Trust earlier this year.

Leah Tata is currently vice-president at The Indian Hotels Co., while Maya is associated with Tata Capital, and Neville is involved in Trent and the leadership team at Star Bazaar.

In the fiscal year 2022-23, the Tata Trusts made significant contributions to various initiatives, totaling Rs 581.52 crore in grant disbursements. This funding was primarily channeled through two main umbrella trusts, Sir Ratan Tata Trust, which contributed Rs 456.42 crore, and the Sir Dorabji Tata Trust, which disbursed Rs 125.10 crore.