: N Chandrasekaran, Chairman of Tata Sons, the holding company of Tata Group, has resigned from his post. However, he will continue in this post till February 2027. This decision of Chandrasekaran has come just before the AGM of Tata Sons to be held on August 18. Chandrasekaran became the chairman of Tata Sons in 2017. He was the first manager from outside the Tata family to take charge of the group. During his tenure, Tata Group’s revenue more than doubled, but in recent times, differences with Tata Trusts had deepened over heavy investment in new businesses and their performance. Decision amid Noel Tata’s protest and suspense of voting in AGM According to sources, Chandrasekaran’s move has come after the uncertainty created by the August 18 meeting and the possible voting in it. Noel Tata, chairman of Tata Trusts, which holds about 66% stake in Tata Sons, was believed to be against extension of Chandrasekaran’s tenure. In February 2024, the board had recommended another 5-year tenure for Chandrasekaran, but Noel Tata later raised questions on the performance of the new business and advocated only a 2-year executive tenure for Chandrasekaran. Chandrasekaran said – It is an honor to lead Tata Sons. Chandrasekaran said, “My current tenure as Chairman of Tata Sons ends on 20 February 2027. Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously passed a resolution recommending extension of my tenure for the next 5 years. This was recorded by the Nomination and Remuneration Committee and Board of Tata Sons and recommended to extend further. After this, this proposal could not go ahead because one member of the board did not support it. Six months have passed since that meeting and no decision has been taken till date. Not only is it important to have a leader to lead the group, it is also important to have clarity on leadership for employees, investors, partners and other stakeholders.” After the death of Ratan Tata, differences within the trust increased. After the death of Ratan Tata, the internal differences of the Tata Group started coming to the fore. Many trustees have stepped down and senior government officials had also advised the trustees that their differences should not impact the functioning of the group companies. Many officers and executives had expressed concern that this tussle was delaying important decisions of the group. Shares of Tata Group down by 3% After the news of N Chandrasekaran’s resignation, there is a decline in the shares of listed companies of Tata Group. Shares of TCS, Tata Motors, Tata Steel and Tata Consumer are down up to 3%. Investors are concerned that the leadership change at the holding company (Tata Sons) and ongoing differences with Tata Trusts could impact the group’s future strategies. Chandrasekaran’s 9-year journey: Revenue reached ₹ 16.24 lakh crore. After Chandrasekaran took command in 2017, the scope of Tata Group has changed a lot. Chandrasekaran, who headed TCS, after taking charge of Tata Sons, took the group into new areas like aviation (acquisition of Air India), semiconductor, electronics manufacturing, battery and digital business. Search for new leadership and impact on the group’s big projects Chandrasekaran’s resignation comes at a time when the Tata group is going through the biggest investment decisions in its history like the merger of semiconductor fab, EV batteries and Air India. Chandrasekaran is not only the chairman of Tata Sons, but also of major companies like TCS, Tata Motors and Tata Consumer Products. With his departure, a period of leadership transition has begun in the entire group. Tata Sons holds 66% stake in Tata Group. Tata Group was founded by Jamsetji Tata in 1868. It is India’s largest multinational company, its 30 companies in 10 different businesses do business in more than 100 countries of the world.
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