Story of Tata

 

The Tata Trusts have always been generous and catholic and beneficiaries hail from all communities.

After WWII, when my father Dr J Alexander went to England for his Physics PhD as a JN Tata scholar, another Malayali KR Narayanan also went as a Tata scholar to London  School  of Economics. 

However, the Trusts' founders, Sir Dorab and Sir Ratan, clearly intended that the Trusts would be headed by a Tata and basically run by Parsis ... which, I think, was a wise decision, considering the wonderful way the Trusts helped hospitals, supported  education and promoted welfare activities even handedly across the country.

The board that selected me and 8 other 1st year students  of Bombay University for a Sir Dorabji Tata Scholarship in 1960 consisted of JRD himself, Prof RD Choksi, Freddy Mehta and Nani Palkiwala, ....all very eminent  Parsis.The Trust itself was efficiently managed by Mrs Vesugar and Dinshaw Malegamwala, both Parsis. Is there anything wrong with a Parsi Trust entrusting Parsis to handle the moolah honestly and effectively? 

After Ratan Naval Tata  took over from JRD in 1991 as Chairman of the Trusts and of Tata Sons, he took on the satraps who ran TISCO, TELCO, Tata Chemicals , Taj Hotels and became the sole power centre. Yes, strong men Rusi Mody, S Moolgaonkar, Darbari Seth and Ajit Kerkar who had worked with JRD for decades were brought to heel.

Ratan Tata's father Naval was adopted by Sir Ratan  younger son of JN Tata, soon after he and his brother Sir Dorab ( both childless)  brought in close relative JRD Tata to help.them run the Tata empire.

Since, JRD too had no progeny, Naval Tata's children automatically became inheritors of the .assive Tata Empire,  starting with his eldest son, another Ratan, through his first wife, Sooni. Ratan took over as  Chairman of the Tata Trusts and Tata Sons. 

His direct brother Jimmy had no interest the business.

But father Naval's French second wife Simone headed "Lakme" and step brother Noel was in charge.of Tata International and retail firm Trent.

Noel was naturally expected to take over when Ratan Tata stepped down in 2012 as Chairman of Tata Sons on reaching the mandatory age of 75 years.

Unexpectedly, Cyrus Mistry, scion of the Shapoorji Pallonji family (which held 18% share) was made Chairman of controlling company Tata Sons. 

But Ratan who had his office in Bombay continued to control Tata Sons through his nominee directors. Incidentally, Cyrus's sister Aloo Mistry is married to Noel Tata. 

Rather complicated web of relationships?

Ratan Tata and Cyrus Mistry soon clashed on policy matters, including discontinuing lossmaking ventures like Tata Motors' "Nano", which was Ratan's dream child. 

Cyrus was sacked in 2016 by the Tata Sons board, but won his case in NCLAT ... only to lose in the Supreme Court.

When Cyrus Mistry died in a car accident near Palgar in 2022, Ratan didnt attend his funeral. Nor did anyone from Tata companies ... so bitter was the animosity.

Noel Tata is now facing a situation similar to that faced by half brother Ratan in 1991. But Ratan  was then in total control as Chairman of Tata Trusts and Tata Sons, whereas the latter position is now held by  Ratan protege N Chandrasekaran who is fighting tooth and nail against Noel Tata, backed it is alleged, by the government.

In a major move the RBI has ruled that Tata Sons can no longer be a private company and should go for public listing immediately.

While buffeted on multiple fronts, Noel Tata has one big advantage which previous Tata supremos  Sir Dorab, Sir Ratan, JRD and Ratan never had.

He has heirs ... a son (Neville) and 2 daughters ( Maya & Leah) .. to ensure continuity of the hoary Tata legacy!

J P Alexander