In Short:
After seven years of conflict, the Shapoorji Pallonji Group and Tata Group may seek reconciliation with Noel Tata now leading Tata Trusts. A preliminary meeting might occur soon. Historical tensions stemmed from Cyrus Mistry’s ousting in 2016, but with legal disputes resolved and both prominent figures deceased, the focus is on moving forward. Reconnecting could help SP Group’s financial issues and their Afcons IPO plans, although their stake in Tata Sons remains a point of contention.
Possible Reconciliation Between Shapoorji Pallonji Group and Tata Group
After a tumultuous seven years marked by a corporate feud, the Shapoorji Pallonji Group and the Tata Group appear to be taking steps towards mending fences. The latest development sees Noel Tata stepping into the spotlight as he takes charge of the Tata Trusts.
A Glimmer of Hope for Dialogue
Sources indicate that an initial meeting between the two groups could be on the horizon, although a date has yet to be finalized. “We are hopeful that both sides can put the past behind them and find a constructive way forward,” mentioned an industry insider.
Looking Back at the Feud
The rift between the Tatas and the SP Group traces back to 2016, when Cyrus Mistry was abruptly removed as chairman of Tata Sons. Prior to that upheaval, the relationship was relatively smooth, with the Shapoorji Pallonji Group holding an 18% stake as the largest minority shareholder in Tata Sons. Mistry’s appointment in 2012 had symbolized a strong alliance. However, his ousting led to accusations against Ratan Tata, alleging interference in operations despite his retirement, and claims of compromised governance.
- Also read: I look forward to continuing Ratan Tata’s legacy: Noel Tata, new Chairman of Tata Trusts
Time to Move Forward?
With both Cyrus Mistry and Ratan Tata now having passed, and the legal disputes landing in favor of the Tatas thanks to a Supreme Court ruling, another source remarked, “There is no reason to hold on to past grievances.”
Noel Tata: The Potential Mediator
Noel Tata, known for his gentle, non-confrontational approach to leadership, emerges as a vital figure who could help bridge the gap. His marriage to Aloo Mistry, the daughter of the late Pallonji Shapoorji Mistry, provides him with a unique perspective and personal stake in fostering reconciliation.
Business Implications
For the SP Group, achieving harmony with the Tata Group could alleviate financial burdens and streamline efforts for the anticipated listing of their infrastructure firm, Afcons, a market analyst highlighted. Recent interactions have suggested warming relations; during Tata Sons’ latest annual general meeting, a representative from the SP Group even commended the growth of Tata Group companies, hinting that hostilities may have eased.
- Also read: SP group may revise Afcons IPO size on investor demand
The Future of Their Business Relationship
Despite these hopeful signs, a significant challenge remains—the fate of the SP Group’s stake in Tata Sons, which is estimated to be over ₹3 lakh crore. The SP Group has shown interest in partially selling this stake, looking to an IPO as a possible route to facilitate an exit, though this idea has not found favor with the Tata Group. “It’s early days, let’s see how things pan out over the next couple of weeks,” the insider concluded.
