Tata Sons Defers Decision on Natarajan Chandrasekaran’s Third Term as Chairman

Board Puts Re-Appointment on Hold Until 2027 Term Nears End​

Mumbai, February 24: The board of Tata Sons has deferred a decision on the re-appointment of Natarajan Chandrasekaran for a third term as Chairman, according to sources. The development signals potential differences within the holding company of the diversified Tata Group.

At a board meeting held in Mumbai on Tuesday, no resolution was passed on extending Chandrasekaran’s tenure beyond his current term, which concludes in February 2027. No official statement was issued after the meeting.

Concerns Raised by Noel Tata Over Group Performance and Listing Plans​

Sources indicated that Noel Tata, Chairman of Tata Trusts, raised concerns regarding losses in certain group companies. Tata Trusts holds a 66 per cent stake in Tata Sons, giving it decisive influence over strategic and governance matters.

It was also indicated that Noel Tata was not in favour of listing Tata Sons and sought a written commitment on the matter.

Chandrasekaran, 62, reportedly received support from several board members, who argued that losses at one group company should not overshadow the broader performance of the conglomerate or the Chairman’s contributions over the years. While some directors suggested a vote, Chandrasekaran urged that the decision be deferred.

Chandrasekaran’s Leadership Since 2017​

Chandrasekaran joined the Tata Group in 1987 and rose through the ranks to become Chief Executive Officer of Tata Consultancy Services before assuming charge as Chairman of Tata Sons in February 2017.

During his tenure, he has been credited with steering the group through a phase of restructuring and consolidation. Under his leadership, the group’s 15 largest listed companies nearly doubled their revenue and profits.

His term has included major strategic moves, such as advancing plans to establish India’s first homegrown semiconductor fabrication facility, overseeing the takeover of loss-making Air India, and guiding Tata Consultancy Services through disruption triggered by artificial intelligence.

Governance Structure and Shareholding Dynamics​

Founded in 1868 by Jamsetji Nusserwanji Tata in Mumbai, the Tata Group remained under the leadership of the Tata family for much of its history.

In 2012, Ratan Tata stepped down as Chairman, with Cyrus Mistry taking over. A boardroom dispute in 2016 led to Mistry’s removal by Tata Sons. Mistry died in 2022. The Shapoorji Pallonji Group continues to hold an 18 per cent stake in Tata Sons, making it the largest minority shareholder.

Following the death of Ratan Tata in 2024, Noel Tata was appointed Chairman of Tata Trusts. As the principal shareholder with a 66 per cent holding in Tata Sons, Tata Trusts remains central to governance decisions at the apex holding company.

Tata Sons oversees around 30 operating companies across consumer goods, automobiles, information technology, and aviation. Major entities within the group include Jaguar Land Rover, Tata Consultancy Services, Tata Motors, and Air India.

The ownership structure positions Tata Trusts at the core of governance, with Tata Sons functioning as the principal investment holding and promoter entity for the Tata Group’s operating companies.