Noel Tata Joins Tata Sons Board Amid Growth Plans

Noel Tata has officially strengthened his position within Tata Sons Ltd after shareholders approved his appointment as a director at the annual general meeting held recently. As the half-brother of the late Ratan Tata, his appointment carries significant weight in the $150 billion Tata Group, which has a long-standing legacy in Indian industry.

In addition to Noel Tata, shareholders also approved the reappointment of Venu Srinivasan and Saurabh Agrawal, while Anita Marangoly George was appointed as an independent director. George, who is the co-founder and CEO of Prosperete, brings a wealth of experience from her previous roles at the World Bank and the International Finance Corporation (IFC).

Interestingly, Noel Tata is the only board member holding shares in the company, with 4,058 shares of Tata Sons. This adds a unique perspective to his governance role, especially as Tata Trusts, which owns 66% of Tata Sons, remains firm about keeping the company privately held despite regulatory pressures to list on stock exchanges.

The AGM was held against the backdrop of ongoing discussions with the Shapoorji Pallonji (SP) Group, which owns 18.4% of Tata Sons and is exploring exit options. However, no agreement has been reached yet. The Tata Group is also on track to list Tata Capital Ltd by September, with expectations of raising around Rs 17,000 crore through the proposed IPO.

Shareholders approved a substantial dividend of Rs 64,900 per ordinary share, a significant increase from Rs 35,000 the previous year. This decision resulted in a total payout of Rs 2,622.91 crore, with Rs 1,731 crore allocated to Tata Trusts for supporting its philanthropic initiatives. This marks the second consecutive year of nearly doubling the dividend for Tata Sons.

Despite reporting a decline in revenue to Rs 38,834.58 crore from Rs 43,893 crore the previous year, Tata Sons demonstrated financial resilience by repaying all its outstanding borrowings. The company ended the financial year with a net cash position of Rs 7,117.43 crore, a notable increase from Rs 2,679.19 crore the year before.