Ratan Tata Dies at 86: Who Will Lead the Rs 30 Lakh Crore Tata Group?

By siliconindia  |  Thursday, 10 October 2024, 02:32:30 PM IST

Ratan Tata Dies at 86: Who Will Lead the Rs 30 Lakh Crore Tata Group?
Ratan Naval Tata was indeed the visionary leader and Chairman Emeritus of the Tata Group. The icon breathed his last in the wee hours of Thursday, aged 86, following a protracted illness. He was under treatment at the Breach Candy Hospital in Mumbai for weeks. His death marks the end of an era in Indian business life. Not one can forget the manner in which one of India's largest and most respected conglomerates lost its leadership through his demise.
Ratan Tata's contributions to the Tata Group are historic; he is widely regarded as an industrialist and a philanthropist in his own right. This was when Ratan Tata took the place of J.R.D. Tata in running Tata Sons back in 1991, presiding over a period in the Tata Group's history where such expansion was indeed unprecedented, both nationally and internationally. Here, under his leadership, Tata Group became a household name wherein some of its significant acquisitions include Jaguar Land Rover and Corus Steel. Tata Consultancy Services went public during his tenure. And Tata Motors consolidated its position as an international player in the automobile space during his period.
The Leadership Question: Who Will Succeed Ratan Tata?
With Ratan Tata having passed into the great beyond, attention now shifts to future leadership of the Rs 30 lakh crore Tata Group. Tata, of course, stepped down as Chairman of Tata Sons in 2012 but remained Chairman Emeritus, always on hand for guidance and oversight. His leaving raises important questions about succession of leadership within the group, especially since Tata himself had no children.
Tata Sons was headed by the Chairman of the company, N Chandrasekaran. He has been with the group since 2017. Chandrasekaran had served as the chief executive officer of Tata Consultancy Services before this and took it up from there, setting the company onto global expansion. Well known for being calm and pragmatic in leadership, Chandrasekaran has steered the group through trying times, not only because of the COVID-19 pandemic and consequent lock­downs but also through wider economic oscillations. He is seen as a stabilizing influence over the conglomerate.
However, speculation on possible future leadership has heightened since the passing away of Ratan Tata, with quite a few key people within the Tata family and group under consideration for the succession.
No. 1 Noel Tata: The Front-runner
At number one is Noel Tata, half-brother of Ratan Tata and member of the innermost circle. Being the son of Naval Tata from his other marriage, Noel had been in the business for many years and evidence of his professionalism speaks for himself. Presently, he is holding important positions within the group, but popularly known for his leadership role in Trent, Tata's retail arm he has helped build into a profitable one.
While he has remained in the background compared with his more illustrious half-brother, experience and knowledge of group operations make Noel Tata a natural successor to a much larger leadership role in the company. His consistent and disciplined approach has won over hearts inside the group and many believe he will be one of the company's leaders of the future.
Next-Generation Leadership
Leah, Maya, and Neville Tata
Focus has also been put on the next generation of the Tata family, where special attention is being given to children belonging to Noel Tata - Leah, Maya, and Neville Tata. Each one of them has slowly climbed the corporate ladder within the Tata Group and are considered to be future leaders.
The eldest among the siblings, Leah Tata has a postgraduate degree in Marketing from IE Business School, Madrid, and joined the group in 2006. She is Vice President at The Indian Hotels Company Limited, the hospitality division of the group. Leah has carved a profile to be known for business acumen, becoming an upcoming star in the group.
The middle child, Maya Tata, came up from the ranks as an analyst in Tata Capital. Like her sister, she has moved smoothly along the corporate ladder and is to play a more significant role in the group's activity in the future.
The youngest of the three, Neville Tata has followed in his father Noel's footsteps by joining Trent as a starting point for his career. He has therefore brought attention towards the retail business and is now considered an integral part of the family connection to the group's operations.
A Legacy of Ethical Business Practices
During Ratan Tata's Chairmanship, the Tata Group expanded further, but he also laid greater focus on doing business ethically and having corporate social responsibility. These values could be very much seen in the work of Tata Trusts, which has been involved in a very wide range of philanthropic initiatives through their interests in a lot of healthcare, education, and rural development programs.
Even after resigning as the head in 2012, Ratan Tata's impact continued, particularly through his mentorship in philanthropic activities. His legacy has made him a respected icon not just in India but also globally, and his legacy will always shape Tata Group's operations.
Impact on Tata Group's Operations
Even before his death news, the group's operations have been affected by the loss of Ratan Tata. That is the time when Tata Consultancy Services, the information technology company, was supposed to announce its quarterly earnings for the fiscal year 2024-25. A press conference was scheduled for later in the evening but now seems unlikely to go ahead with the sombre backdrop. The TCS board is also likely to consider a second interim dividend for the financial year; nothing has been officially communicated regarding the meeting that would confirm whether this is on the cards.
This being such an important moment of transition, everyone is looking towards the leadership and wondering how this great institution is going to maneuver into the future.

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