Noel Tata questions execution of Tata Group's mega projects amid tussle with Chandrasekaran

Tata Trusts Chairman Noel Tata has questioned whether the Tata Group has sufficient discipline to execute its ambitious investment projects. He said the conglomerate's strategic direction remains sound, but stressed the need for discipline in executing large projects and allocating capital.

"I do not, I have not asked or questioned the direction of what we've done. I question sometimes the delivery of what we are doing," he said while speaking at the Hindustan Times Leadership Summit in New Delhi on Saturday.

"The question is: do we have the discipline when we execute projects and not the direction? How will projects with a long gestation period succeed if we don't have discipline, and how will we allocate capital to those projects?" Tata asked. "So very clearly direction is fine, but we also need discipline of execution in these very large projects."

The Tata Group has committed billions of dollars to semiconductors, aviation, electronics and electric vehicle batteries under Tata Sons Chairman N Chandrasekaran, who has led Tata Sons since 2017.

According to Bloomberg, a confidential analysis prepared by Tata Trusts estimated that the group's semiconductor, electronics and aviation businesses would require more than Rs 2 lakh crore ($21 billion) in additional capital.

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Noel Tata vs Chandrasekaran

The governance dispute intensified on September 17 when the Tata Sons board approved another five-year term for Chandrasekaran despite Noel Tata's opposition.

The decision followed Chandrasekaran's earlier communication that he did not intend to seek another term after his current tenure ended in February 2027.

Noel Tata opposed the reappointment, arguing that Chandrasekaran's original decision had already been accepted and should be respected.

The board also backed steps towards listing Tata Sons, another issue on which Noel Tata and the Trusts have expressed strong reservations.

Tata Trusts owns approximately 66% of Tata Sons, giving it a controlling stake in the holding company of the $185 billion conglomerate.

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'Charity precedes commerce': Noel Tata 

At the summit, Noel Tata defended the Tata Group's ownership structure, arguing that philanthropy must remain central to its operations.

"Look, the Tata way, the way I see it, revolves around a single premise. Charity precedes commerce. Charity owns commerce. It's not the other way around," he said when asked about his idea of the Tata way of life.

He explained that dividends from Tata companies help finance hospitals, educational institutions, disaster relief, and other social initiatives. "Dividends from some of our listed companies which come through the channel become tomorrow's hospitals, tomorrow's flood relief, tomorrow's educational institutions, tomorrow's relief for people in crisis," Tata said.

He argued that the existing ownership structure provides continuity to the group's philanthropic mission, regardless of changes in leadership. "In this particular case, the owner cannot die, the owner cannot be bought, and the owner cannot retire," he said.

Noel Tata also reiterated his opposition to listing Tata Sons, warning that bringing outside shareholders into the holding company could shift its priorities.

"My worry is that listing, which is what some people are proposing, will change this Tata way and one day if we have 30,000, 40,000 shareholders profit may take precedence over philanthropy," he said.

Noel Tata maintained that the group's fundamental objectives remain unchanged. "In terms of governance, the strategic direction, as I've said now twice or thrice, remains the same. Philanthropy on one hand, nation-building on the other hand. This is independent of the leadership, of personalities."