Tata Sons Explained

Tata Sons
Foundation:[1]
Subsid:Tata Group
Location:Bombay House, Mumbai, Maharashtra, India
Area Served:Worldwide
Revenue: (FY 23) [2]
Owner:Tata Trusts (66%)

Tata Sons Pvt. Ltd. is the parent company of the Tata Group and holds the bulk of shareholding in the Tata group of companies including their land holdings across India, tea estates and steel plants and derives its revenue from dividends from these companies and brand loyalty fees. It is a privately owned conglomerate of nearly 100 companies encompassing several primary business sectors, including: chemicals, consumer products, energy, engineering, information systems, materials, and services. Its headquarters are in Mumbai.[3]

Tata Sons was established as a trading enterprise in 1917, and engaged primarily in the lucrative opium and tea trade with Mongolia and China[4] before moving from conducting businesses directly to becoming the principal holding company of Tata Group. About 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. The biggest two of these trusts are the Sir Dorabji Tata Trust and Sir Ratan Tata Trust.[5] Tata Sons is the owner of the Tata name and the Tata trademarks, which are registered in India and several other countries. It is one of the largest conglomerates in the Indian subcontinent.[6]

Location

The company is registered and located in Mumbai, India.[7]

Board of directors

The Tata Sons Board of Directors consists of the following:[8]

PositionPersonnel
ChairmanNatarajan Chandrasekaran (Chairman, Tata Group)
Independent DirectorFarida Khambata[9]
DirectorVenu Srinivasan (Chairman, TVS Group)
Non-Executive DirectorAjay Piramal (Chairman, Piramal Group & Shriram Group)
Additional DirectorRalf Speth (Former CEO, Jaguar Land Rover)
DirectorBhaskar Bhat
Independent DirectorHarish Manwani
DirectorSaurabh Agrawal (CFO, Tata Sons)

Shareholding pattern

Sir Dorabji Tata Trust and Sir Ratan Tata Trust are the two biggest shareholders of Tata Sons, with a combined stake of around 50%, while Pallonji Shapoorji Mistry was the largest individual shareholder.[10] Pallonji's father, Shapoorji Pallonji Mistry was a prominent construction magnate who acquired a significant stake of Tata Sons in the 1930s initially from Framroze Edulji Dinshaw, and finally when JRD Tata's younger brother, Dorab, sold his shares in a fit of anger.[11] [12] Pallonji's shareholding was divided equally between his two sons, Shapoor Mistry and Cyrus Mistry, who died in September, 2022.[13]

ShareholderNo of sharesShareholding percentage
Sir Dorabji Tata Trust113,06727.98
Sir Ratan Tata Trust95,21123.56
Sterling Investment Corporation Private Limited37,1229.19
Cyrus Investment Private Limited37,1229.19
JRD Tata Trust16,2004.01
Tata Education Trust15,0753.73
Tata Social Welfare Trust15,0753.73
Tata Steel Limited12,3753.06
Tata Motors Limited12,3753.06
Tata Chemicals Limited10,2372.53
RD Tata Trust8,8382.19
Tata Power Company Limited6,6731.65
Noel Naval Tata4,0581.00
The Indian Hotels Company Limited4,5001.11
Tata Industries Limited2,2950.57
MK Tata Trust2,4210.60
Tata International Limited1,4770.37
Tata Consumer Products Limited1,7550.43
Piloo Minocher Tata4870.12
Jimmy Naval Tata3,2620.81
Ratan Naval Tata3,3680.83
Sarvajanik Seva Trust3960.10
Tata Investment Corporation Limited3260.08
Pallonji Shapoorji Mistry1080.03
Jimmy Minocher Tata1570.04
Veera Farhad Choksey1570.04
Simone Naval Tata80.00
HH Maharawal Virendra Singh Chauhan(Raja of Chhota Udepur)[14] 10.00

Conversion to Private Ltd, and internal conflicts

Natarajan Chandrasekaran took over as Chairman of Tata Sons on 21 February 2017. The company also undertook conversion from a public limited company to a private limited one in 2017;[15] [16] both these decisions were challenged in court by former executive chairman Cyrus Mistry.[17] In December 2019, NCLAT declared the conversion, and by extension, Chandrasekaran's chairmanship, illegal and restored Mistry. On 10 January 2020, however, the Supreme Court stayed NCLAT's order;[18] [19] in response, Mistry filed a cross appeal in the court, seeking explanations for anomalies in the NCLAT.[20] On 26 March 2021, the Supreme Court of India upheld Tata Sons' decision to sack Cyrus Mistry.[21]

IPO

In March 2024, speculation arose about Tata Sons preparing for an Initial public offering (IPO), potentially valuing the company at up to $96 billion, according to investment advisory firm Spark. This anticipated IPO represents a key development in the Tata Group's strategy, reflecting its intent to tap into public markets for capital.[22] [23]

See also

External links

Notes and References

  1. Web site: TATA SONS PRIVATE LIMITED . Zauba Corp.
  2. Web site: Tata Sons Shareholders clear key appointments and dividend.
  3. News: Subramanian . N . Trusting the family: a short history of Tata sons ownership . 1 November 2018 . Business Standard . 1 November 2018 . https://web.archive.org/web/20180417043313/http://bsmedia.business-standard.com/_media/bs/data/general-file-upload/2016-10/tata%20family%20tree.pdf . 17 April 2018 . live .
  4. Book: Rich . Andrew . International Encyclopedia of Civil Society . Think Tanks . 1543–1546 . 1 February 2010 . 10.1007/978-0-387-93996-4_99 . 978-0-387-93994-0 .
  5. Web site: Tata Sons via @tatacompanies. 16 May 2017. https://web.archive.org/web/20181226203848/https://www.tata.com/company/profile/Tata-Sons. 26 December 2018. live.
  6. News: Pocha . Jehangir . Tata Sons: Passing the Baton . Forbes . 12 December 2011 . 1 November 2018 . https://web.archive.org/web/20181101135844/http://www.forbesindia.com/article/boardroom/tata-sons-passing-the-baton/31052/1 . 1 November 2018 . live .
  7. Web site: About us . www.tatatrusts.org . Tata trusts – official website . 1 November 2018 . https://web.archive.org/web/20181101135943/http://tatatrusts.org/section/index/about-us . 1 November 2018 . live .
  8. Web site: Leadership . www.tata.com . Tata Sons – official website . 20 Apr 2020 . https://web.archive.org/web/20200501051021/https://www.tata.com/management-team . 1 May 2020 . live .
  9. Web site: Farida Khambata . www.cartica.com . Cartica – Official website . 20 Apr 2020 .
  10. Web site: Pallonji Mistry—an Indian Irish billionaire's journey from outsider to kingmaker to opponent at the Tata Group. Quartz India. Manu. Balachandran. 26 October 2016.
  11. News: Tata Sons: How Shapoorji Pallonji Mistry family checked into the group. Economic Times. Reeba. Zachariah. 13 December 2011. 9 April 2020. https://web.archive.org/web/20161029231304/http://economictimes.indiatimes.com/news/company/corporate-trends/tata-sons-how-shapoorji-pallonji-mistry-family-checked-into-the-group/articleshow/10850235.cms. 29 October 2016. live.
  12. Web site: The Mistry Family Came On Board Tata Sons By Chance And May Exit By Force. Bloomberg Quint. Sajeet. Manghat. 5 November 2016.
  13. Web site: Former chairman of Tata Sons Cyrus Mistry killed in road accident India News - Times of India . The Times of India . 4 September 2022 . en.
  14. News: The mysterious man who owns one solitary share in the unlisted Tata Sons. Alikhan. Anvar. Scroll.in. 28 March 2017. en-US. 28 March 2017. https://web.archive.org/web/20170328183747/https://scroll.in/magazine/831698/the-mysterious-man-who-owns-one-solitary-share-in-the-unlisted-tata-sons. 28 March 2017. live.
  15. Web site: Tata Sons looks to shed its public ltd tag for pvt ltd . Times of India . 9 July 2018 . 16 September 2017 . https://web.archive.org/web/20180828172725/https://timesofindia.indiatimes.com/business/india-business/tata-sons-looks-to-shed-its-public-ltd-tag-for-pvt-ltd/articleshow/60705040.cms . 28 August 2018 . live .
  16. News: Tata Sons' shareholders vote to become a private company . Economic Times . 22 Sep 2017 . Mandavia . Megha . 9 July 2018 . https://web.archive.org/web/20180709185122/https://economictimes.indiatimes.com/markets/stocks/news/shareholders-approve-tata-sons-move-to-become-private-entity/articleshow/60780879.cms . 9 July 2018 . live .
  17. News: ET NOW . NCLAT refuses to stay Tata Sons conversion to private co . Times of India . The Economic Times . 24 August 2018.
  18. News: Tata vs Mistry: Supreme Court stays NCLAT order favouring Cyrus Mistry. Rautray. Samanwaya. 11 January 2020. The Economic Times. 22 January 2020. https://web.archive.org/web/20200316141936/https://economictimes.indiatimes.com/news/company/corporate-trends/tata-vs-mistry-supreme-court-stays-nclat-order-favouring-cyrus-mistry/articleshow/73184138.cms. 16 March 2020. live.
  19. News: How Cyrus Mistry won the battle to reclaim chairmanship of Tata Sons. Roy. Sukanya. Business Standard. 2 January 2020. 9 April 2020. https://web.archive.org/web/20200404032829/https://www.business-standard.com/podcast/companies/how-cyrus-mistry-won-the-battle-to-reclaim-chairmanship-of-tata-sons-119121801347_1.html. 4 April 2020. live.
  20. Web site: Tata-Mistry Case: Cyrus Mistry Files Appeal In Supreme Court Seeking More Relief From NCLAT. BloombergQuint. Bloomberg Quint. 21 February 2020. https://web.archive.org/web/20200221153534/https://www.bloombergquint.com/business/tata-mistry-case-cyrus-mistry-files-appeal-in-supreme-court-seeking-more-relief-from-nclat. 21 February 2020. live.
  21. Web site: Tata Mistry Case: Supreme Court upheld Tata Sons' decision to sack Cyrus Mistry as chairman India Business News - Times of India. 2021-10-19. The Times of India. en.
  22. Web site: Tata Sons IPO Listing Update: Big update on Tata Group's much-awaited next public issue . 6 March 2024 . ET Now News.
  23. Web site: 5 March 2024 . Tata Sons May Be Valued at Up to $96 Billion in IPO, Spark Says . 6 March 2024 . Bloomberg.

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