Why Tata Trusts Are So Important For The Tata Group? (Image Source: Tata Trusts)
New Delhi: Noel Tata has been appointed as the new chairman of Tata Trusts following the passing of Ratan Tata on October 9. The decision was announced yesterday, on October 11. Ratan Tata, aged 86, passed away due to age-related health issues at Breach Candy Hospital in Mumbai. However, one question that is making the rounds is why this is so significant. How will the chairman of Tata Trusts succeed Ratan Tata? Why are Tata Trusts so important for the group?
Leadership At Tata Trusts
Tata Trusts, the charitable arm of the Tata Group, plays a significant role in promoting education, healthcare, arts, culture, and livelihood generation. Ratan Tata led the trust for many years, and following his passing, Noel Tata was chosen to take over the role. Ratan Tata’s passing drew attention to the issue of succession, as he was unmarried and had no children. The responsibility of continuing the Tata Trusts’ legacy now rests with his half-brother, Noel Tata.
Ratan Tata Family Background
Ratan Tata was born to Naval Tata and his first wife, Sooni Tata. His parents separated in 1948 when he was about 10 years old. Noel Tata, on the other hand, is the son of Naval Tata and his second wife, Simone Tata, making him Ratan Tata’s half-brother.
How Tata Trusts Control Tata Sons?
Tata Sons Pvt Limited, the parent company of the Tata Group, serves as the promoter and holding entity for all Tata businesses. Tata Trusts owns approximately 66 per cent of Tata Sons. The philanthropic organizations control most of the $165-billion Tata Group. These trusts manage a large part of the company and play a key role in maintaining the stability and guiding the direction of the entire group.
Who Are The Shareholders of Tata Trusts?
Two key trusts — the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust — together own 66 per cent of Tata Sons. This is the main holding company of the Tata Group. This majority stake makes Tata Trusts the largest shareholders, which also means that the chairman of these trusts holds a highly important position in the group.
Structure of Tata Sons
Founded in 1917, Tata Sons is currently chaired by Natarajan Chandrasekaran, who took over in January 2017. He oversees the group’s diverse portfolio, which includes companies in sectors like technology, automobiles, and steel.
