Noel Tata: The successor the Tatas trust

The unanimous decision of the Tata Trust’s board to appoint 66-year-old Noel Naval Tata as their Chairman has catapulted the low-profile brother of late Ratan Naval Tata into the limelight.

Twenty years younger to RNT, as the late Ratan Tata was known to his industry peers and colleagues at the Tata Group, Noel Tata has been associated with various businesses of the salt-to-software global conglomerate for more than four decades.

Aside from his recent rise as chairman of Tata Trusts, Noel also heads the Tata Group’s highly successful fashion retail company Trent Ltd, which he founded in 1998. As of March 31, 2024, Trent operated 232 Westside, 545 Zudio and 34 stores across other lifestyle categories. Its net profit tripled in FY24 to ₹1,477 crore, from ₹394 a year ago, and this is largely credited to Noel’s leadership and decision making.

Noel Tata was born in December 1957 in Mumbai. He is the son of Naval Tata, RNT’s father and Simone Tata, RNT’s step-mother. RNT had two half-sisters, Shireen and Deanna Jejeebhoy. As per reports, RNT made his two half-sisters the executors of his will, and all his financial assets and investments, estimated at about ₹10,000 crore, is reported to have been dedicated to philanthropy.

Noel studied at Mumbai’s prestigious Cathedral and John Connon School and went onto graduate with a Bachelor’s in Economics from the University of Sussex in Britain. He later obtained a management degree from INSEAD in France, one of the world’s leading business schools.

As the head of Tata Trusts, the largest shareholder of Tata Sons with more than 66% holding, Noel’s role would be crucial in shaping the Tata family’s legacy in philanthropy and in the running of the Group, though changes made to the article of association of Tata Sons in 2022 limit Noel from holding the dual positions of Chairman of the Trust and Tata Sons, which used to be the case with RNT till 2012 when he retired as Executive Chairman of Tata Sons.

For a few months in 2016-17, RNT held dual positions when he became interim Chairman to regain control of the Group from Cyrus Mistry, the former Tata Sons Chairman who passed away in a car accident in September 2022.

Assertive role

In a marked departure from the past when it had preferred to remain as a sleepy shareholder, Tata Trusts for the first time was seen asserting its right as the largest shareholder of Tata Sons in 2016 when RNT, then 79, led a board room battle to oust Cyrus Mistry as executive Chairman of Tata Sons.

Since then, Tata Trusts has become a proactive shareholder to ensure group companies perform effectively so that more capital could come in the form of dividend, to be deployed in philanthropic activities.

In this context, while Noel, as chairman of Tata Trusts, will have no executive role in Tata Sons, he will still play a pivotal role in group affairs to shape its future.

In 2016, Tata Sons decided to remove Cyrus Mistry as Director of the company, after he was ousted as chairman, as he allegedly breached trust by leaking confidential information. Along with Tata Trusts, other shareholders, including some Tata Companies holding Tata Sons shares and others like Noel, were required to prove their majority. The Mistry family, who are related to the Tatas through marriage and holds more than 18% stake in Tata Sons, chose to oppose the move.

Noel, according to people familiar with the case, along with his mother Simone Tata, stood by RNT rather than siding with Cyrus Mistry, who was his wife Aloo (Mistry) Tata’s brother. Sources said it was a critical decision by Noel given the sensitivity of his relationship. While on one side he had his affection for his wife’s brother, he had to weigh it against the Tata Group’s organisational integrity. Noel chose the latter.

Along with his mother, also a shareholder in Tata Sons, Noel gave the power of attorney to RNT giving his elder brother the mandate to decide the course of action, sources told The Hindu.

Far-sighted decisions

Besides this, Noel has proved to be far-sighted in business decisions. He set up Trent, under his mother Simone’s guidance, in 1998, making the group’s entry into the retail sector, much before retail became a buzzword among conglomerates. It was the earliest profitable entry into the retail world and Noel built this business step by step, store by store.

Noel was appointed as a Non-Executive Director of Trent in August 2010 and thereafter as Chairman in March 2014. Prior to that, he served as the Managing Director of the company for more than 11 years where he oversaw Trent’s growth across formats, from one store in Mumbai to more than 800 now.

Trent in the earlier form was the well-known fast moving consumer goods brand Lakme, which was set up by his mother. It dealt with cosmetics, toiletries, and perfumes. This business was divested to Hindustan Unilever later. From early on, Noel handled the the consumer business of the Tata Group unlike RNT who focused on high tech and core sectors. Noel preferred asset light and profitable businesses.

Despite his vast experience in the field of marketing, administration, and investments, group insiders say he is never one to throw his weight.

Noel has also stayed clear of speaking publicly about any succession issues, which has earned him much credibility within the group.

Feud in the family

He was also tight-lipped during the feud between his late brother-in-law Cyrus Mistry and RNT, leading to the former’s ouster as chairman of Tata Sons in 2016 even as the bitterness between RNT and Mistry, including that of the Shapoorji Pallonji Group (SP Group), played out in public and in courts.

Prior to his appointment as Chairman of Tata Trusts, he was a trustee on the boards of Sir Dorabji Tata Trust and Sir Ratan Tata Trust. These and a few other trusts together are called Tata Trusts.

Aside from his new role at Tata Trusts, Noel currently serves on the Board of various Tata Group companies, including as the Chairman of Trent Ltd, Tata International Ltd, Voltas Ltd & Tata Investment Corporation Ltd and as the Vice Chairman of Tata Steel Ltd and Titan Company Ltd.

His last executive assignment was as the Managing Director of Tata International Ltd, the trading and distribution arm of the Tata Group, between August 2010 and November 2021, where he oversaw the company growing from a turnover of $500 million to more than $3 billion.

Noel has three children, Leah, Maya and Neville, all of whom are trustees at various Tata Trusts and work in Group companies in various capacities.

Noel’s leadership would be closely watched during this transition period, where he would have to navigate a challenging position as Tata Trusts chairman, while not holding any executive position at Tata Sons. One thing is clear, he will not be a lame duck Chairman.