In Tata he trusts: NA Soonawala said to be keen on Noel Tata
MUMBAI: The succession plan under way at the Tata Trusts, aimed at putting in place the next generation of guardians to the country’s biggest conglomerate, is being keenly watched. The Parsi community and others who follow the Tata Group closely are asking whether Noel Tata will be inducted on the board, ensuring that a member of the founding family could one day find himself at the helm of the Tata Trusts. Or will Ratan Tata, 81, be the last in line to do so?
At least one member of the old guard wants Noel Tata to join, according to people with knowledge of the matter. A close confidant of Ratan Tata, NA Soonawala, 83, is keen that the century-old tradition of having a Tata on the board of trustees be upheld, the people said. Soonawala is a vice chairman on two of the philanthropic entities that make up the Tata Trusts, which has a 66% stake in Tata Sons, the holding company of the $100-billion Tata Group. Soonawala and the Tatas didn’t respond to ET’s queries.
Whether Soonawala’s view will prevail hinges on how Ratan Tata feels about his half-brother, who’s 20 years younger, said the people ET spoke to for this story, many of whom preferred to remain anonymous.
The half-brothers are rarely seen together in public and the younger Tata has always maintained a low profile, maintaining a “respectful” distance, according to one of the people. However, that gap has been narrowing of late, according to some.
At a recent Tata Sons shareholder meeting, Noel Tata publicly criticised Cyrus Mistry, former chairman of the holding company. This might have been hard but necessary because it showed where his loyalties lay when it came to the Tata Group, said the people. Noel Tata is married to Mistry’s sister. Mistry had been ousted after falling out with Ratan Tata in 2016. Ratan Tata is also said to have made an effort at closer ties by visiting his half-brother’s home to celebrate the birthdays of the latter’s children. The Mistry family’s Shapoorji Pallonji Group owns 18.4% of Tata Sons.
The first part of the succession plan was put in place late December when TVS Motor chairman Venu Srinivasan and retired senior bureaucrat Vijay Singh were appointed as vice chairmen at the Trusts. This in itself was historic, being the first time non-Parsis had been identified as successors. The two hold the same rank as Soonawala, who by virtue of his age can’t be in the reckoning in any succession plan.
Soonawala, a bachelor like Ratan Tata, has worked with both half-brothers. “Soonawala has huge regard and respect for Noel’s capabilities, having been on the board of Trent (the retail company that Noel Tata has built up) for over 27 years,” said a person who knows him closely.
Mukund Rajan, former Tata brand custodian, said Soonawala wields strong influence within the system.
“Noshir Soonawala has been one of the closest aides of Ratan Tata,” he said. “A fervent believer in Ratan Tata’s style of leadership, he has mostly flown under the radar, exerting enormous influence within the Tata system even while remaining understated and low profile.”
A former Tata Sons director agreed the two were close but questioned whether Soonawala would be able to influence Ratan Tata’s decision.
Soonawala has been at the group for about five decades, having been hired from ICICI by Tata stalwart Adi Billimoria, and is reputed for his knowledge and skills in the area of finance.
After being finance director of Tata Sons for 11 years, Soonawala was appointed by Ratan Tata as the non-executive V-C of the holding company in 2000, from where he retired in 2010. This was a recognition of his contribution in guiding the financial operations of group companies with transparency and enabling Tata Sons to consolidate its holdings in major operating Tata companies.