The Noel Approach

ONE OF THE MOST significant developments of 2024 would have to be the passing of the baton of Tata Trusts to Noel N. Tata, half-brother of the iconic Ratan Tata. This change of guard after Ratan Tata’s demise is significant for a number of reasons. For one, Tata Trusts together control 66% in Tata Sons, the holding company of the $165-billion Tata Group. This means that the Trusts command significant influence in the group, and whoever chairs Tata Trusts needs to ensure that the Trusts’ interests are protected and they get the funds they need for their charitable objectives. Noel Tata’s elevation has another important dimension to it — he now sits on the board of Tata Sons as one of the representatives of the Trusts. This is the first time, after Ratan Tata, that an individual is holding dual positions in the Trusts and in Tata Sons. Hence, Noel’s role is two-pronged — it has a not-for-profit element as chair of the Trusts and a for-profit element as a board member of the holding company. And it is this dual role that analysts, the market and Tata insiders will watch with utmost interest.

How will the Noel Tata approach play out? In our cover story, Nevin John pieces together what the new Tata Trusts chairman’s vision would be, and how he could balance his dual roles. Tata Sons chairman Natarajan Chandrasekaran, who was handpicked by Ratan Tata to take charge at the holding company, has been helming the conglomerate successfully since 2017, ensuring existing businesses are re-energised, and new opportunities are capitalised upon. As those who observe and know the low-profile Noel Tata tell us, he is unlikely to interfere in the working of the operating companies. But his understanding of the group and his successful leadership of Trent will clearly make him much more than an observer. Tata-watchers see Noel Tata’s appointment as a vote more for continuity than change, but the Noel approach will likely play out gradually, over time. While he has been in charge at operating companies thus far, this is the first time he is heading the powerful philanthropic institutions that are core to the Tata way of working, and its values. Noel Tata is likely to use his business acumen to good use there, for outcome-based solutions to the Trusts’ philanthropic activities. Significantly, his three children — Leah, Maya and Neville — are also embedded in various group companies. As the Tata Group embarks on an exciting new growth phase across multiple businesses, including complex new ones, Noel Tata’s presence is bound to have a deep impact on its future course of action. It will be fascinating to see how this plays out.

The cover story apart, there’s lots more to read in this issue. Ajita Shashidhar and Nevin John get you the implications of the new brand identity of the Jamshyd Godrej-led Godrej Enterprises Group, and how it is different from cousin Adi’s Godrej. And as the countdown to Budget 2025 begins, a stellar panel discusses the imperatives before finance minister Nirmala Sitharaman who will need to push growth while keeping fiscal prudence in mind.

Also, as we enter the new year, our Best Investments package tells you the most productive avenues to put your money in. Here’s wishing you a happy and prosperous 2025!