Tata Group is going through an internal disagreement and is making headlines. It is about the leadership that will steer the company after 2027. N. Chandrasekaran, Executive Chairman of Tata Sons, is in the spotlight as to whether he will continue to be the leader after his term ends (in 2027). Noel Tata, who is the Chairman of Tata Trusts (which owns 65.9% of Tata Sons), suggests that he not to. Interestingly, N. Chandrasekaran led the company towards success and played a pivotal role. Now, did the suggestion get approved? And what did the Trustees of Tata Trusts say? Learn more.
People Involved in the Decision for Tata Sons
N. Chandrasekaran
N. Chandrasekaran has been the Executive Chairman of Tata Sons (the main holding company of the Tata Group) since January 2017. His term is going to end in 2027, and so it became a topic of discussion at the Tata Group. Since he took the role, the company has done significantly better under his leadership. He has worked to:
- Reduced debt by over ₹30,000 crore.
- Tata Steel and Tata Motors are profitable now.
- Led TCS to become one of the world’s leading IT services providers.
- Encouraged investments in digital, aviation, semiconductors, etc.
Noel Tata
Noel Tata is the Chairman of Tata Trusts and owns 65.9% of Tata Sons (meaning the decisions of Tata Sons can be widely controlled by Tata Trusts). He took over the role last year after Ratan Tata passed away.
Noel Tata developed and expanded renowned fashion retail brands like Westside and Zudio. He also took Trent from small revenue numbers to making a whopping ₹12,000 crore by 2024.
Concerning the leadership at Tata Sons, Noel Tata does want N. Chandrasekaran to continue.
He would rather split the Chairman’s job into 3 separate roles:
- CEO (Chief Executive Officer)
- MD (Managing Director)
- Deputy CEO
Suggested that Chandra stay as a non-executive chairman (more like an advisor or a guide to the company. And finally, a managing director from one of the Tata companies can become Group CEO.
The Trustees of Tata Trusts
It is a group of powerful people who guide Tata Sons since Tata Trusts is the majority owner. Its members are:
- Venu Srinivasan (TVS Motor)
- Vijay Singh (former defence secretary)
- Jehangir H. C. Jehangir
- Jimmy Tata
- Mehli Mistry
- Pramit Jhaveri (ex-Citi India CEO)
- Darius Khambata (lawyer)
And they rejected Noel’s proposal and suggested that Chandra continue as the Chairman for another 5 years (third term). Even if he crosses the official retirement age of 65, because:
- They all believe that N. Chandrasekaran’s leadership has been very successful.
- Tata Sons has become profitable under him.
- The projects he started need his guidance (like semiconductors, aviation, and energy storage).
Current Tata Sons Board Members Look Like
- N. Chandrasekaran (Chairman)
- Noel Tata (Tata Trusts nominee)
- Venu Srinivasan (Tata Trusts nominee)
- Saurabh Agrawal (Group CFO)
- Harish Manwani (Independent Director)
- Anita Marangoly George (Independent Director)
Notably, Tata Trusts can nominate up to one-third of the Tata Sons Board. However, the decision is not yet final, and importantly, Chandra has the trustees’ faith and backing.
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