Noel Tata became the new Chairman of Tata Trusts after his half-brother Ratan Tata-- the illustrious Chairman Emeritus of the Tata Group-- passed away in October last year at the age of 86. After Ratans demise 67-year-old Noel Tata was chosen by the board to lead Tata Trusts -- an umbrella group of charities which has an overwhelming 66 percent stake in Tata Sons the holding company which runs Tata Group. Noel Tatas ascension as the Chairman of Tata Trusts has essentially elevated him to the very top of the hierarchy in the Tata Group and made him the single most powerful figure in the Rs 34 lakh crore Tata business empire. Heres how. Who runs the Tata Group? The Tata Group is run by its holding company Tata Sons with Tata Trusts being the largest stakeholder in the $403 billion salt-to-software conglomerate owning a combined 66 percent stake. Established by its founder Jamshedji Nusserwanji Tata when he purchased a bankrupt oil mill for Rs 21000 in 1868 a huge amount at the time and repurposed it into a cotton factory the Tata Group has after over 135 years of its founding transformed into an expansive global conglomerate with businesses ranging from salt to software spread across more than 100 countries globally. Difference between Tata Sons Tata Group and Tata Trusts In laymans terms Tata Sons is the parent company of Tata Group which consists of over 100 operating companies. In a more technical language Tata Sons is the holding company that owns the majority of the Tata Groups shareholding including land tea estates and steel plants. Tata Sons derives revenue from dividends and brand loyalty fees. On the other hand Tata Trusts is an umbrella body of 14 trusts engaged in philanthropic ventures in fields ranging from art culture education health and livelihood generation. Tata Trusts has a combined 66 percent stake in Tata Sons making it the majority shareholder in the Tata Group. Tata Trusts has two main trusts -- Sir Ratan Tata Trust and Sir Dorabji Tata Trust-- having a combined 52 percent stake in the company while other trusts under its umbrella have a combined shareholding of 14 percent taking the total stake of Tata Trusts to a whopping 66 percent. Who are the trustees of Tata Trusts? According to available records currently Tata Trusts has 13 trustees in Sir Ratan Tata Trust and Sir Dorabji Tata Trust out of which five persons are trustees of both trusts. They are; Former Defense Secretary Vijay Singh TVS Groups Venu Srinivasan Ratan Tatas step brother Noel Tata businessman Mehli Mistry and lawyer Darius Khambatta. Former Citi India CEO of Sir Dorabji Tata Trust Pramit Jhaveri Ratan Tatas younger brother Jimmy Tata and Jehangir H.C. the CEO of Jehangir Hospital of Sir Ratan Tata Trust are the other trustees. How Tata Trusts controls Tata Group? Owing to its controlling stake in the company Tata Trusts essentially wields absolute power in Tata Sons which controls Tata Group. No decision can be taken by Tata Sons without the approval of Tata Trusts making it the ultimate controlling body of the conglomerate. As per group rules the two main trusts can nominate one-third of the directors of Tata Sons and have the final authority to appoint and remove all directors. Notably these sweeping controls were given to the the two trusts when Ratan Tata changed the rules of the group upon his retirement from the post of Chairman in 2012. These changes became possible when the Central Government made made changes in the Companies Act allowing Tata Trusts to vote directly in the Tata Sons board. What makes Noel Tata most powerful figure in Tata Group? As the Chairman of Tata Trusts Noel Tata now wield sweeping powers over Tata Sons as the trusts hold the controlling stake in the company. However its pertinent to note that Noel Tata does not personally own these 66 percent shares of Tata Sons they are owned by the trusts. His personal stake in the company is a completely different topic.