Ratan Tata's successor at Tata Trusts: Who are the frontrunners?

The trusts, particularly the Sir Dorabji Tata Trust and Sir Ratan Tata Trust, collectively hold 66% of Tata Sons, making them the company's primary shareholders.

In Short

• Noel Tata, Ratan's half-brother, seen as strong candidate
• Governance changes separate roles of Tata Sons, Trusts chairmen
• Final decision by consensus among 13 trustees

The demise of Ratan Tata, Chairman Emeritus of Tata Sons, has left a leadership gap at Tata Trusts, the philanthropic bodies that play a crucial role in overseeing the $165-billion Tata Group. Tata Trusts hold a majority stake in Tata Sons, and their chairmanship is essential to both the trusts' and the group’s stability.

Ratan Tata did not appoint a successor before his death, leaving the decision to the board of trustees. The trusts, particularly the Sir Dorabji Tata Trust and Sir Ratan Tata Trust, collectively hold 66% of Tata Sons, making them the company’s primary shareholders. The selection of a new chairman now rests with the trustees, who may first appoint an interim leader before a final choice is made.

Traditionally, the leadership of Tata Trusts has been closely associated with both the Tata family and the Parsi community. Ratan Tata was the last to hold the dual role of chairman of Tata Sons and Tata Trusts. In 2022, changes were made to the Tata Trusts’ governance structure, ensuring that the roles of Tata Sons chairman and Tata Trusts chairman remain separate. This structural shift is part of the group's efforts to strengthen governance.

With Ratan Tata’s death, speculation has grown over who will assume the chairmanship of Tata Trusts, a key role that influences the direction of India’s largest conglomerate.

Key contenders for Tata Trusts leadership

Several individuals on the board of trustees are being considered as potential successors. Among the prominent names are Venu Srinivasan, an industrialist from the TVS Group, and Vijay Singh, a former defence secretary. Both serve as vice-chairmen of the Trusts and have played important roles in its governance since 2018. However, they are not seen as the top candidates for the role of chairman.

A leading contender is Noel Tata, Ratan Tata’s half-brother and current chairman of Trent, a Tata Group company. At 67, Noel Tata is considered a strong candidate, especially as the Tata family has often led the Trusts. His extensive experience within the Tata Group, spanning more than four decades, adds to his credibility. Furthermore, the preference within the Parsi community for a family member to lead the Trusts strengthens his candidacy.

Noel Tata became a trustee of the Sir Ratan Tata Trust in 2019 and later joined the board of the Sir Dorabji Tata Trust in 2022. His involvement with these trusts is seen by many as part of a transition to maintain continuity in leadership after Ratan Tata. Should he be chosen, Noel would be the 11th chairman of the Sir Dorabji Tata Trust and the sixth chairman of the Sir Ratan Tata Trust.

Although Noel Tata is a leading candidate, the final decision will be made by consensus among the 13 trustees. Other key figures in this decision include Mehli Mistry, a close confidant of Ratan Tata, and Darius Khambata, a senior lawyer who has advised on succession matters. While Tata’s personal wishes may not be legally binding, they are expected to influence the trustees as they decide on the future leadership.