New Delhi: After serving 40 years at the Tata group, N. Chandrasekaran said in a statement Wednesday that he will not be seeking reappointment as chairman of Tata Sons upon the completion of his current tenure on 20 February, 2027.
In the statement, Chandrasekaran said the extension of his next term for a period of five years was unanimously resolved and recommended by Sir Dorabji Tata Trust and Sir Ratan Tata Trust, which together hold majority stake in Tata Sons. It was then recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the board and tabled before the board on 24 February, 2026.
“However, the proposal was not carried through because one of the Board Members did not support it, and in the absence of unanimous support, I chose to defer the decision,” said Chandrasekaran, referring to but without naming Noel Tata, chairman of Tata Trusts, which controls about 66 percent of Tata Sons. “It has been 6 months since that board meeting, and no resolution has been reached till date,” Chandrasekaran added.
Opposition from Noel Tata, according to a report by Bloomberg, stems from their differing opinion on group strategy on limiting the conglomerate’s debt, public listing and the exit of Shapoorji Pallonji Group’s 18.37 percent stake in Tata Sons.
Tata Sons manages more than 30 Tata group companies, including Tata Consultancy Services (TCS), Tata Motors and Air India.
Having joined the Tata group in 1987, Chandrasekaran was appointed CEO and MD of TCS in 2009. He was appointed as a director on the board of Tata Sons on 25 October, 2016 and took charge as executive chairman of Tata Sons on 21 February, 2017.
In his statement Wednesday, Chandrasekaran also stated that having clarity of leadership in a conglomerate like Tata group is a must. “It is not only necessary to have a leader in place to lead the Group beyond Feb 2027, but also clarity on leadership is important for employees, investors, partners and other stakeholders,” his statement read.
Chandrasekaran’s statement sparked investor concerns, with key Tata group stocks recording significant decline. TCS shares dropped by nearly 5.70 percent, Tata Motors Passenger Vehicles by 4.11 percent and Tata Consumer Products by 2.85 percent, among others.
(Edited by Amrtansh Arora)
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