$328b Tata empire faces internal war after Ratan Tata’s death
A year after the passing of India’s most revered industrial icon, Ratan Tata, the $328-billion Tata Group – a global force stretching from salt to steel, software to skies – is grappling with an unexpected storm.
Legacy meets leadership void
Ratan Tata’s visionary leadership transformed the group into an international powerhouse, acquiring Jaguar Land Rover, Tetley Tea, and even spearheading India’s first homegrown iPhone manufacturing plant. He embodied a blend of integrity, innovation, and purpose-driven capitalism that defined Indian business for decades.
But following his death, the conglomerate once united by his moral authority is fracturing again. A fierce internal power struggle within Tata Trusts, the entity that controls 66% of Tata Sons, has prompted government mediation – reviving memories of the bruising 2016 feud that led to the ouster of then-chairman Cyrus Mistry.
Recent reports suggest the removal of Mehli Mistry, a close aide of Ratan Tata, from Tata Trusts’ board—a move yet to be officially confirmed.
Who really owns Tata?
The Tata structure remains unlike any other in global capitalism. At the top sits Tata Sons, the holding company controlled mostly by Tata Trusts, a philanthropic body funding vast social initiatives.
This setup blurs the lines between business and benevolence, creating what analysts describe as an “inbuilt tension” between profit and purpose.
“It’s a revival of a long-unresolved question – who truly controls Tata, and how much influence can the Trust exert on corporate decisions?” says historian Mircea Raianu, author of Tata: The Global Corporation That Built Indian Capitalism.
Cracks amid global expansion
The timing couldn’t be worse. The group is simultaneously pushing into semiconductors, electric vehicles, and reviving Air India, bought from the government in 2021.
Yet, turbulence has hit key sectors:
An Air India crash earlier this year raised public concern.
JLR suffered a crippling cyberattack, halting UK production lines.
TCS, the group’s IT crown jewel, faces slowing growth, layoffs, and the loss of major clients like Marks & Spencer.
The IPO flashpoint
At the heart of the latest rift is the debate over whether Tata Sons should go public.
The Shapoorji Pallonji (SP) Group, which owns 18% of Tata Sons, has long demanded an IPO to ensure transparency and accountability. But Tata Trusts’ leadership fears a listing would expose the group to short-term market pressures and dilute its social mission.
“Public listing could erode the Trust’s control and moral vision,” a senior insider told the BBC.
The SP Group, meanwhile, insists an IPO is “a moral and social necessity.”
Brand under pressure
Brand strategist Dilip Cherian warns the Tata image – once synonymous with trust and ethics – is taking visible hits.
“The Air India crash, the JLR cyberattack, investor jitters – these are blows to Tata’s credibility. Now, the governance feud adds confusion about who’s really in charge,” he said.
The missing pillar
In the past, whenever the group stumbled, a flagship – Tata Steel or later TCS – anchored stability. But TCS’s slowing revenue growth means there’s currently no clear pillar strong enough to steady the group amid internal fractures.
Testing Tata’s core strength
Chairman N Chandrasekaran remains at the helm, his term extended to ensure continuity. Insiders stress that while the trustees’ feud doesn’t directly involve Tata Sons’ board, the distractions are “very real.”
The Tata Group has survived ideological battles before – from liberalisation-era tensions to the Cyrus Mistry saga. Yet this time, experts say, the soul of the Tata model itself is being tested.
“This is not just about leadership,” says Raianu. “It’s about redefining the DNA of a company that blends business with benevolence. Out of this uncertainty may emerge a Tata that’s more transparent, more accountable – and perhaps, more human.”