Beyond The Name: Tata Sons After Ratan

However, discord emerged, prompting Mistry’s exit through the involvement of top lawyers and the country’s highest courts. Now, in a break from the Tata’s family-run tradition, N Chandrasekaran, an outsider, has been appointed to lead the Tata Group.

Since taking charge, he has balanced professional management with values instilled by the Tata family. Yet, Mistry’s memory endures, reminding us that the Tata legacy can be upheld by both insiders and outsiders.

Mistry’s tenure as Chairman was unique. Though not a Tata, Mistry was very much part of the ‘family'. His father’s Shapoorji Pallonji Group remains the single-largest shareholder in Tata Sons, making it a crucial stakeholder.

So when Mistry took over as Chairman in 2012, commentators said the Tata legacy had been passed on to a new branch of an old family tree.

But Mistry’s term was marred by challenges, his approach often diverging from RNT’s, leading to tensions between him and the Tata Sons Board. In 2016, the Tatas shocked the business community by announcing their decision to remove Mistry, revealing a rift within the Group leadership.

Mistry’s exit revealed the challenges of balancing family ties with professional leadership at Tata, highlighting how deeply intertwined family and business remain, even with external leaders.

Turning Point: Phase Of Reflection And Transition

The Tatas operate under a distinct hierarchy: Tata Sons is the holding company of the Tata Group, which comprises over 100 companies across various sectors.

Tata Sons shapes the group's overarching strategy and manages its extensive portfolio, ensuring alignment with its core values and objectives.

As the dust settles over RNT’s passing, the leadership at Tata Sons finds themselves in the spotlight.

Originally a small family firm that went on to shape Indian business for 150 years, Tata has grown into a professionally managed global colossus, with revenues of over US$ 130 billion and operations across industries stretching from salt to steel, automobiles to tea, power to technology, and much more.

With the patriarch gone, murmurs are being heard. Will a Tata family member again step in to lead the Group?

That is to say: Will Ratan Tata's half-brother Noel become the Chairman, or does Chandrasekaran's elevation finally signify the inevitable professionalisation of Tata, pushing the family name into a ceremonial role?

The media is rife with rumours, especially after Noel was recently named the Chairman of Tata Trusts, which use a bulk of the Group’s profits for philanthropic work and holds 66 per cent stake in Tata Sons.

Noel has always been a quiet presence behind the scene and has long been seen as a potential successor at Tata Sons.

He possesses a deep understanding of the retail and consumer businesses. Under his leadership, Trent, the retail arm of the Tatas, thrived.

That being said, it seems unlikely that Noel Tata will step into the Chairman’s role. The Group has moved toward professionals, and Chandrasekaran’s term has solidified that position. Noel may just continue to lead Tata Trusts, playing a significant role in the Group's philanthropic activities.

Effervescent Change: The Steady Chandrasekaran

Chandrasekaran, who took over as Chairman of Tata Sons in 2017, is a non-Tata family member, but always enjoyed RNT’s absolute trust. He brought with him a vast experience, evident when he shepherded the Tata Consultancy Services (TCS) into becoming one of the world’s most valuable technology services companies.

His understanding of the digital economy, his calm yet determined demeanour and his ability to navigate the Tatas’ diverse portfolio, proved he was the man for the job.

Since 2017, Chandrasekaran has upheld Tata’s ethics, trust and innovation, revitalised core businesses, turned around Jaguar Land Rover and played a role in Air India after it was reclaimed.

RNT’s guidance was always there for Chandrasekaran to lean on. He is reported to have said: “There’s no better mentor than Ratan Tata. He doesn’t dictate, he just shows you the way.”

This partnership between the family and the professional highlighted a shift — that the family could step back, trusting seasoned professionals to continue the legacy.

JRD’s Legacy: A Modern, Committed Tata Group

To truly grasp the weight of succession, it is necessary to trace the lineage of leadership. JRD Tata, the man who ‘founded’ the modern Tata Group, was a true visionary.

His tenure spanned five decades, from 1938 to 1991, and established Tata’s dominance across industries. Under JRD, Tata became synonymous with trust, ethics and nation-building, pioneering industries such as aviation (Air India), hospitality (Taj, read: ‘Indian Hotels’) and steel (Tata Steel).

RNT took over as Chairman of Tata Sons in 1991. Under his quiet yet firm leadership, the Tatas became a global brand. His bold buyouts of Tetley, Corus Steel and Jaguar Land Rover transformed the company from a national jewel into a global enterprise.

He was an intuitive leader, had the ability to take risks and was invested emotionally in the businesses. Tata Nano, a project close to RNT’s heart, reflected his empathy for India’s middle and lower classes.

As Chairman, Ratan Tata prioritised business with a conscience, emphasising philanthropy and personally supporting victims after 26/11.

His legacy of leadership with compassion continues to inspire respect, serving as a guiding force for Chandrasekaran in his final years.

Of Values, Compassion And Fast-Changing Markets

What made JRD and RNT compelling leaders were more than just intelligence and business acumen. It was empathy.

While Ratan Tata was revered for his ability to take bold steps and trusting his instincts and people, his mentor JRD was way ahead of his time and established countless yardsticks in innovation, while encouraging all at Tata to “think beyond profit".

Ratan Tata is known to have never only bothered about the bottomline. An example was his refusal to lay off people during the 2008 global financial crisis, despite pressure from many quarters.

To those who pushed him, he would say: “We’re in this together, and we’ll get out of this together.”

For Chandrasekaran, carrying forward this legacy is about balancing the past with the future, respecting the Group’s values, while chipping away in a changing marketplace.

Analysts say his greatest ability is to “keep his feet on the ground, despite Tata Group’s global reach”.

The Road Ahead: The Burning US$ 130 Bn Question

Nevertheless, the question of succession continues to loom. Analysts and insiders insist Chandrasekaran will continue into the near future.

An insider said: “Chandra has earned the trust of the Board, and he has proven that professional management works. Tata doesn’t need a family member (at the helm) to be successful.”

Effectively, the hue and cry over chairmanship is really about Tata being seen by the masses not just as any another business conglomerate, but as a national institution.

This is a Group the weight of whose history and legacy matter deeply, not just to the conglomerate, but also to the country. One can surmise that while professional leadership will be the way forward, the family will continue to play an influential, if reduced, role.

RNT’s passing is an emotional moment, and the world is watching for the next move(s).

To get an inkling of what they might be, we should take a leaf out of Ratan Tata’s own book — his belief in the power of the people — because they will remain the key to Tata’s success.

(The writer is a veteran journalist and communications specialist. Views are personal.)

Boardroom Image credit: Tata Central Archives​