Noel Tata needed more exposure, experience to succeed Ratan Tata: Book

Ratan Tata, the late Chairman Emeritus of Tata Sons, felt that his half-brother Noel Tata needed greater exposure and experience in handling difficult assignments to succeed him as the head of the principal investment holding firm and promoter of Tata Companies, according to a recently released book.

Noel Tata, recently appointed as the Chairman of Tata Trusts -- a collective of charities that indirectly controls the $165-billion salt-to-software conglomerate -- after the death of Ratan Tata, was among several candidates interviewed in March 2011 when a search for his successor was underway.

Ratan Tata had decided to stay away from a selection committee to find his successor despite many wanting him to be a part of it -- a decision he would later regret, according to a biography of the late veteran industrialist and philanthropist -- Ratan Tata A Life -- authored by Thomas Mathew and published by HarperCollins Publishers.

One of the reasons for Ratan Tata to stay away from the committee was that there were many aspirants from within the Tata Group, and he "wanted to give the contenders the comfort and confidence of knowing that a collective body of equals would recommend one of them based on a unanimous decision, or if not by a majority, and not on account of the Chairman's preference".

The second reason was more personal as there was the "overwhelming view that his half-brother Noel Tata was the 'default candidate' to succeed him" amid a push from the Parsis in the company and the traditionalists in the community as they considered him to be one of them.

However, according to the book, for Ratan Tata, only "the talent and the values of the person mattered", with religion, community or the region contenders came from were hardly relevant.

Ratan Tata was even open for the selection committee to consider foreigners if they had the right qualifications. The late Chairman Emeritus was also clear that he should not be seen as steering the selection committee or 'pushing it in one direction or the other'.

Even in the event of Noel not being selected, Ratan Tata did not want to be seen as 'anti-Noel', wrote the author.

"Perhaps, if Noel had had the experience of handling difficult assignments, he could have established his credentials more forcefully," the book quoted Ratan Tata as saying.

More importantly, Noel could have had the opportunity to demonstrate the 'courage and enterprise' that JRD had identified as a prerequisite to be appointed as the Tata group chairman.

"For Noel to compete successfully for the top post 'he should have greater exposure than he has had," said Ratan Tata. "Partly, his not having it has been his own choice." 

Citing an interview with 'the Times', the book noted that Ratan Tata had stated that he 'rose up through the business' and added that even if he had a son, he would have done something to not have his son automatically become his successor.

Late Cyrus Mistry, who was initially part of the selection committee, was chosen to succeed Ratan Tata, who retired as Chairman of Tata Sons in December 2012.