New Delhi: In his later years, Ratan Tata, the former Chairman Emeritus of Tata Sons, reflected on whether his half-brother Noel Tata could succeed him as the head of the Tata Group, revealing that Noel needed more exposure and experience in handling complex challenges, according to a new biography.
The book, Ratan Tata: A Life, authored by Thomas Mathew and published by HarperCollins, sheds light on Ratan Tata’s thoughts about the leadership transition within the $165-billion Tata empire. Despite Noel Tata’s recent appointment as Chairman of Tata Trusts — a collective of charities controlling a significant share of Tata companies — Ratan Tata believed his brother lacked the experience necessary to head Tata Sons, the conglomerate’s principal investment holding firm.
When a search for Ratan Tata’s successor began in 2011, he deliberately chose to stay away from the selection committee. According to the biography, he wanted the process to be impartial, ensuring that any recommendation would be based on merit, without his influence. This decision, however, became one of his regrets later on.
Several candidates from within the Tata Group were under consideration, with Noel Tata emerging as a favored contender among some stakeholders. There was a strong push from Parsis within the company and traditionalists in the community to have Noel take on the top role, seeing him as the “default candidate.” However, Ratan Tata emphasized that leadership should be determined by talent and values, irrespective of community or personal connections.
“Perhaps, if Noel had handled more difficult assignments, he could have proven his credentials more forcefully,” Ratan Tata is quoted as saying in the book. He added that leadership of the Tata Group required “courage and enterprise” — qualities JRD Tata, the group’s legendary former chairman, had deemed essential for the role. Ratan Tata also remarked that Noel’s limited exposure to major challenges was partly due to his own career choices.
Ratan Tata’s open-minded approach extended beyond family ties. He was willing to consider external candidates, including foreigners, if they had the right qualifications for the job. He made it clear that he did not wish to be seen as steering the selection process or as being “anti-Noel” if his brother wasn’t chosen.
Ultimately, the selection committee appointed Cyrus Mistry, who had initially been part of the committee itself, as Ratan Tata’s successor. Tata retired as Chairman of Tata Sons in December 2012, marking the end of an era.
The biography offers rare insights into Ratan Tata’s leadership philosophy, underscoring his belief that merit should be the sole criterion for choosing leaders, even within a family-run business empire.