It’s hard to find a replacement for influential individuals like Ratan Tata, the man of few words who made unforgettable quotes like ‘A promise is a promise’ and ‘Question the unquestionable’ and lived up to them. Tata, a person most identified with adjectives like poise, dignity, focus and international appeal in today’s world, will step down as chairman of the Tata Group in December 2012. In his own words, he has defined his successor as the person, who must maintain the company’s core values, because they are, in a manner of speaking, the DNA of the group – the crown jewels. In 19 years of association with the Tata Group, Ratan Tata has to his credit the manufacture of the world’s cheapest car, globalisation of Tata Group and the successful and huge takeovers of companies like Tetley, Corus and Jaguar-Land Rover.
Indians are experiencing the mixed feeling of sorrow, seeing him step down and the joy and anticipation of seeing the next generation Ratan Tata. It is interesting to note that the powerful magnate has clearly stated that the USD 71-billion conglomerate ‘Tata Group’, is an Indian group and should not be branded or seen as a ‘Parsi group’. Hence, he will choose a successor based on aspects other than religion, despite pressure from the community to appoint a chairman of that religion.
Ratan Tata took charge of the Group when it was looking for direction and there were satraps in corner offices. He has nurtured the business, shaken hands with the world, embraced technology, challenged existing notions of manufacturing and built a proud legacy today. He has brought in young managers and moulded them into fine representatives of the company. Building on each of these aspects will be a massive task for his successor. Further, Ratan Tata has been conferred with honorary titles of ‘Padma Bhushan’, ‘Padma Vibhushan’, economic advisor to Hangzhou city in the Zhejiang province of China, 26th Robert S. Hatfield Fellow in Economic Education by Cornell University as well as recipient of innumerable awards like Responsible Capitalism in 2010 (presented by FIRST, a multidisciplinary international affairs organisation) and Global Indian Award in 2008 (at NASSCOM Global Leadership Awards) to name some. The icing on the cake for his successor is that the individual will have the good fortune of working with him for seven to eight months before taking charge.One can imagine the calibre required by his successor, since s/he would not only have to fill the tough and legendary shoes of Ratan Tata, but also have to face the panel of corporate gurus comprising N. A. Soonawala, Shirin Bharucha, R. K. Krishnakumar, Cyrus Mistry and Lord Bhattacharya who are icons themselves. More interesting is the list of contenders for this post. Among the top names are Noel Tata, Ratan Tata's half-brother, current PepsiCo chief Indra Nooyi, former Vodafone head Arun Sarin and Renault Nissan chief Carlos Ghosn. A common attribute prevalent in all the contenders is their global experience. Considering how the group has dramatically expanded its global footprint under the iron-hand rule of Ratan Tata and that around two-thirds of the group revenue is generated from abroad, the selection panel was strictly instructed to look out for and consider contenders who have global experience and could easily manage and lead the ever-growing group. The contender should also be ready to see the end of the current turmoil in the global economy and be prepared to face a world that might see a structural power shift to emerging economies such as China and India. Other parameters include the ability to deal with the debt resulting from the twin acquisitions of Jaguar-Land Rover and Corus Steel.
Among all the listed successors, Noel Tata’s name figures prominently and is in constant circirculation through the ebb and tide of speculation around India Inc’s most closely-followed succession. His family name makes him a strong contender for the position. Within days of being named as a probable successor, Noel was given an enhanced role in the group. He was elevated to vice-chairman of Trent – the group’s retail company which he had been steering for over 12 years as managing director. In addition, he was promoted as the managing director of engineering-to-leather goods maker Tata International. Noel Tata’s candidature seems to be fortified by the fact that he is the son-in-law of Pallonji Mistry, the single largest shareholder (18 percent) in Tata Sons, the holding company of the group.
However, if the panel decides to select a non-Parsi to lead the group, it would be a first in the 140-year-old history of the salt-to-steel-to-software conglomerate. The only non-Parsi chairman to head the group has been Nowroji Saklatvala in 1932.
March 2011 will see the dawn of a new era for the Tata Group. The selection panel would have arrived at a decision regarding the new chairman and successor of Ratan Tata. Until then, the successor remains wrapped in a shroud of mystery. When JRD Tata had named Ratan as his successor, everyone, according to Ratan, was taken by surprise. As per reports, Nani Palkhivala had been the frontrunner for the chairmanship, but the renowned jurist lost out as he was a strong critic of the government, which JRD Tata felt could go against the interests of the Tata Group. In the same way, Ratan Tata, who added that there are contenders outside the group to succeed him hopes to choose the right person who would surprise everybody.
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