Mint Quick Edit | High-level dissent mustn’t distract the Tata Group at this critical juncture
A split among trustees of Tata Trusts has surfaced that Noel Tata would need to address right away. With billions riding on big bets in sectors like semiconductors and aviation, top-level distractions are the last thing this business group needs.
A split among trustees of Tata Trusts over the composition of Tata Sons’ board, as reported by Mint, suggests that the late Ratan Tata’s successor Noel Tata could face a struggle to establish his authority over the group.
While Ratan Tata had complete loyalty, his early years at the top were marked by dissent too; an effort to exert Tata Sons’ control over group companies was resisted by satraps with a firm grip on their fiefdoms, but a formidable team he created helped him win those battles.
Noel Tata’s rise took a business track too. As a corporate leader, his big success was in transforming Trent into a leading apparel retailer. Yet, he didn’t get a seat on the Tata Sons board until after Ratan Tata’s demise. Thus, his role in the holding company’s governance came rather late. However, he has time on his side.
For now, he needs to forge a consensus among Tata trustees and rally the group together as it invests significant sums in challenging sectors such as semiconductors and aviation. Also on the group’s agenda is the task of keeping Tata Sons private and working out an equity exit for the Mistry group. Given all this, the Tata Group can’t afford such high-level distractions.
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