Tata Sons listing could alter group’s traditional values

NEW DELHI: Tata Trusts Chairman Noel Tata has warned that listing Tata Sons could change the group’s traditional business approach by placing greater importance on profits than philanthropy.

Speaking at the Hindustan Times Leadership Summit on Saturday, Noel said increasing the number of shareholders after a public listing could affect the group’s long-standing values. He said the Tata Group had, for more than 150 years, followed its unique approach, balancing business growth with social welfare.

He expressed concern that a listing could bring 30,000 to 40,000 shareholders, potentially shifting the focus towards profits. Noel said Tata Trusts would engage constructively with regulators and other authorities to find a solution that would allow Tata Sons to remain unlisted.

Tata Trusts owns nearly two-thirds of Tata Sons, the group’s holding company. The issue has led to differences between the trusts and the company’s management, led by Chairman N Chandrasekaran. While the trusts oppose listing, the management has maintained that it must follow regulatory requirements. Noel had also opposed Chandrasekaran’s reappointment at a board meeting on September 17.

Noel said there was no change in the group’s strategic direction, but stressed the need for better execution of major projects. He welcomed investments in semiconductors, batteries and electric vehicles as important contributions to nation-building.

He also spoke about Trent’s retail brands, Westside and Zudio. Westside has grown to 320 stores and aims to reach 500.