(Bloomberg) -- Tata Trusts, a collective of charities that indirectly controls the Tata Group, has appointed Noel Tata as the new chairman succeeding Ratan Tata and overseeing a sprawling a $165 billion business empire spread across 100 countries.
The decision was unanimous, the philanthropic trusts said in a statement on Friday. “His appointment comes into place effective immediately,” it said.
The decision comes less than two days after the demise of Tata, one of the most influential Indian businessman who created country’s first multinational conglomerate through a series of marquee acquisitions. The 67-year-old Noel, who’s also the half-brother of Ratan Tata, currently heads group’s massively successful fast-fashion retailer Trent Ltd. and aircon maker, Voltas Ltd.
Tata’s successor is a crucial appointment for the coffee-to-cars conglomerate because Tata Trusts own 66% in the closely held Tata Sons Pvt., the main holding company that controls the group’s largest listed entities including Tata Consultancy Services Ltd., Tata Steel Ltd. and Jaguar Land Rover owner Tata Motors Ltd.
The true sway of a Tata Trusts chair became apparent for the first time in 2016 when Ratan Tata led the shock ouster of Cyrus Mistry as Tata Sons chairman, triggering one of India’s biggest corporate battles.
“I am deeply honored and humbled by the responsibility that has been cast on me by my fellow Trustees,” Noel said in the Tata Trusts statement.
Children on Board
Tata Trusts comprise two main charities, Sir Ratan Tata Trust and Sir Dorabji Tata Trust, under which there are 12 other allied charities, according to its website. Noel’s children — Maya, Neville and Leah — are also trustees of some of the family-linked charities, the website shows.
Tata Trusts were planning to meet Friday in Mumbai to discuss the succession, Bloomberg reported earlier in the day, citing people familiar with the internal discussions.
The son of Naval Tata — who was also Ratan’s father — and Simone Tata, Noel was once among the potential candidates to succeed Ratan Tata when the patriarch was gearing to retire as Tata Sons chairman in 2012 after a two-decade tenure.
The job ultimately went to Mistry with whom the group had a falling out later. Noel is married to Mistry’s sister, Aloo.
Outperformer Trent
Trent, under Noel’s chairmanship since 2014, has seen its shares surge more than 6,000% and emerged one of the most successful Tata companies in recent years. The apparel retailer has also been expanding store count and workforce while peers have cut jobs.
Trent added 193 Zudio stores in the year to March 31, pushing the total tally to 545 across 164 Indian cities. Trent also owns STAR, a supermarket brand in partnership with UK’s Tesco PLC, and apparel chain Westside.
Noel previously helmed Tata International Ltd. from 2010 to 2021, during which the commodity trading firm’s revenue jumped from $500 million to over $3 billion.
His appointment aligns with the Tata Trusts tradition of being helmed by a person from the Parsi Zoroastrian community — the descendants of a group that fled religious persecution in Persia centuries ago and found refuge in western India.
(Updates with more context throughout.)
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