NEW DELHI: The half-brother of Ratan Tata was appointed on Friday as the head of the powerful and influential philanthropic arm of India's Tata group, giving him indirect control of the $165 billion conglomerate.
Tata Trusts said Noel Tata, 67, will be its new chairman after the death of Ratan Tata, one of India's best-known corporate titans.
The decision followed "many old-timers" in the group wanting him to lead the venture, said one Tata executive, who spoke on condition of anonymity.
The parent company, Tata Sons, oversees 30 firms across consumer goods, hotels, automobiles and airlines and has become a global juggernaut over the years, with brands such as Jaguar Land Rover and Tetley Tea in its stable.
It owns Tata Consultancy Services, Taj Hotels and Air India and counts Starbucks and Airbus as partners in India.
Tata Trusts has a 66 per cent ownership of Tata Sons, giving it power over big investment, philanthropic and strategic decisions by the conglomerate, company executives say.
Noel Tata, who is half-French, was already among the many trustees of the philanthropic arm, and also chairman of Tata's retail fashion brand Trent as well as vice chairman of Tata Steel.
The trust earns dividends from Tata Sons but has no direct say over its operations. However, it appoints a third of the directors to Tata Sons who have veto power over board decisions.
The chairman of Tata Trusts "is powerful enough to decide board and key personnel" appointments at Tata Sons, a second senior company executive said. While Tata Sons is not compelled to seek advice or guidance from the philanthropic arm, it's an "unsaid understanding" that there is consultation between leadership on both sides, the first executive added.
The Tata group was set up in 1868 by Ratan's great grandfather, Jamsetji Tata.
A few years later, Jamsetji started charity work that has since expanded to sectors such as healthcare and sports, through many of the trusts in the philanthropic arm.
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