Noel Tata, who recently took over as the chairman of Tata Trusts after Ratan Tata’s passing, has been appointed to the board of Tata Sons as Tata Trusts’ nominee. This decision was made during a virtual meeting held on the eve of Diwali. With his new role, Noel Tata becomes the first Tata family member since 2011 to simultaneously serve on the boards of both Tata Trusts and Tata Sons. It’s worth mentioning that he continues to hold positions on the boards of other companies within the Tata Group. Tata Trusts, which holds a majority 66% stake in Tata Sons, is the largest shareholder in the company.
Noel Tata’s appointment has increased the presence of Tata Trusts nominee directors on the Tata Sons board to three. He joins Venu Srinivasan, the chairman emeritus of TVS, and Vijay Singh, a former bureaucrat from the defence ministry. Together with Mehli Mistry, these four individuals constitute the executive committee that governs Tata Trusts.
Per the provisions outlined in the Articles of Association (AoA) of Tata Sons, it is stipulated that the Trusts retain the right to nominate a third of the board’s directors. Presently, the board of Tata Sons is comprised of a total of nine directors, among whom there are two executive directors led by chairman N Chandrasekaran, three non-executive directors featuring Noel Tata, Srinivasan, and Singh, and lastly, four independent directors.
Noel Tata established contact with Chandrasekaran post his nomination, laying the groundwork for a positive and constructive professional rapport, as per sources in the know. At present, Noel Tata holds roles as a non-executive director and chairperson at Tata Investment Corp., Trent, and Voltas, while also serving as vice chairperson and non-executive director at Titan and Tata Steel.
The Tata Sons board modified its Articles of Association in 2022 to prevent one individual from simultaneously serving as the head of both Tata Trusts and Tata Sons, a position previously held by Ratan Tata.
At 65, Noel Tata voluntarily stepped down from his executive positions within the group as per the company’s retirement policy. The policy dictates that executives must also relinquish all board responsibilities by the age of 70. Nevertheless, individuals serving as trustees or chairpersons are not bound by a specific retirement age. Sources familiar with the conglomerate indicated that there are no legal or contractual impediments preventing Noel Tata from retaining his role as chairman of group companies, given that it is a non-executive capacity.
In April 2014, Noel Tata took over the role of Trent’s chairman, the retail arm of the group, from FH Kavarana. During his tenure, the retail business witnessed a remarkable surge in revenue, jumping by a staggering 430% from Rs 2,333 crore in FY14 to Rs 12,375 crore in FY24. This transformation also turned the tables on the financial front, with the chain’s loss of Rs 19 crore flipping into a substantial profit of Rs 1,477 crore.
Noel Tata assumed the position of chairman at Voltas in August 2017. Under his leadership, the company experienced a remarkable growth in revenue, soaring from Rs 6,404 crore in FY17 to Rs 12,481 crore in FY24. During this period, the stock price surged by almost 300%. Apart from Voltas, Noel Tata also chairs Tata Investment Corp., a company primarily focused on investing in both listed and unlisted equity shares. Over the last five years, Tata Investment Corp.’s stock has yielded an impressive 705% return, far surpassing the Nifty’s 102% return over the same timeframe.
