New Delhi: Noel Tata, a major shareholder of the Tata family and half-brother of Ratan Tata, is gradually increasing his grip on Tata Sons, the holding company of the whole Tata Group. This has led to a heated controversy on the issue of corporate governance and future business leadership in one of the largest business houses in India.
Noel Tata has assumed key positions within the group within the last few years. His increasing power is more noticeable following the last changes in the board and the negotiations concerning the succession planning. Noel Tata is being groomed into a better decision maker in the future according to many industry observers.
Tata Sons is a highly esteemed business group of India having an array of companies such as Tata Steel, Tata Motors, Tata CS, Titan, Air India, Tata Power etc. Due to its size and significance, any shift in leadership is followed by attention and guesswork.
According to some analysts, the long-term stability of the group is guaranteed by the relaxed and disciplined approach of Noel Tata, which makes him a good leader. He has previously managed such international firms as Trent and Tata International. His proponents feel that he has a lot of knowledge of the Indian and global markets.
Some critics however claim that the group needs to adhere to transparent governance regulations particularly following previous leadership wrangles. They demand that the process of succession should be transparent, professional and merit based instead of being affected by family interference. This is what has been instigated by the increasing presence of Noel Tata in corporate circles.
