A year after Ratan Tata’s death: Legacy endures amid turmoil at Tata Group

A year after the passing of Ratan Tata one of India’s most revered business icons the $180-billion Tata Group stands at a defining crossroads. The man who personified humility in leadership and integrity in capitalism left behind a formidable legacy of innovation, philanthropy, and ethical governance. Yet, his absence has also exposed underlying strains within the conglomerate’s core the Tata Trusts even as calls grow for greater transparency at its apex holding company, Tata Sons.
A Year Without Ratan Tata
Ratan Tata’s words — “I don’t believe in taking the right decision, I take a decision and make it right” — continue to inspire generations of entrepreneurs and professionals across India. Born in 1937 to Naval and Sooni Tata, he rose from modest beginnings to lead one of the nation’s largest and most respected business empires.After earning degrees from Cornell University and Harvard Business School, Tata joined the group in 1962 and became chairman of Tata Sons in 1991. Under his leadership, the Tata Group transformed into a global powerhouse, expanding into sectors from steel and automobiles to IT and hospitality. He launched India’s first indigenous car, the Indica, and later the Nano — the world’s most affordable car. He also spearheaded the group’s global acquisitions, including Jaguar Land Rover and Tetley Tea, and oversaw the public listing of Tata Consultancy Services (TCS), now India’s most valuable IT firm.Even beyond business, Tata’s influence was profound. His philanthropy through the Tata Trusts reshaped healthcare, education, and rural development in India. Awarded the Padma Vibhushan in 2008, he continued mentoring startups such as Ola Electric, FirstCry, and Upstox well into his retirement years.
Tata Trusts in Turmoil
Following his death in October 2024, the Tata Trusts which hold a 66% stake in Tata Sons have been mired in internal conflict. The rift is primarily between two blocs: one led by Tata Trusts chairman Noel Tata, supported by trustees Venu Srinivasan and Vijay Singh, and another led by Mehli Mistry, a director at the Shapoorji Pallonji (SP) Group, along with Pramit Jhaveri, Jehangir H. C. Jehangir, and Darius Khambata.The dispute, centering on governance and board appointments, deepened after the rejection of Vijay Singh’s reappointment to Tata Sons, prompting his resignation. Reports suggest that the turmoil could hinder the group’s functioning, with government intervention reportedly under consideration to safeguard the institution’s stability and legacy.
SP Group Pushes for Tata Sons Listing
Amid this governance unrest, the Shapoorji Pallonji (SP) Group, which owns 18.4% of Tata Sons, has renewed its call for the public listing of the holding company. The SP Group described the move as both a financial and moral imperative, arguing that a listed Tata Sons would enhance transparency, ensure a fair dividend policy, and reinforce public trust in the Tata legacy.“The public listing of Tata Sons is not merely a financial step — it is a moral and social imperative,” the SP Group said in a statement. “Transparency is the truest form of respect for both legacy and the future.”The call for listing comes as Tata Sons seeks deregistration as a Non-Banking Financial Company (NBFC) a move widely interpreted as an effort to bypass the Reserve Bank of India’s rule requiring “upper-layer” NBFCs to list by September 2025. Tata Sons maintains that it is not a lender and thus should not be bound by such regulations.
Listing Tata Sons would bring the holding company under the scrutiny of the Securities and Exchange Board of India (SEBI), enforcing higher disclosure standards and unlocking significant value for shareholders. The SP Group noted that such a step would benefit Tata Trusts — India’s largest public charity — by ensuring sustainable dividend inflows for philanthropic causes.
Balancing Legacy and Future
The Tata Group’s current challenges underscore a paradox: a conglomerate built on integrity and collective purpose now finds itself negotiating internal discord and calls for transparency. The SP Group has emphasized that its demand for listing is not adversarial but aligned with Jamsetji Tata’s founding ideals of openness, accountability, and social good.“Our relationship with the House of Tatas spans generations,” the SP Group stated. “We remain committed to shaping a future that honours the legacy of both founding families.”

(Business Correspondent)