Tata Trusts launch hunt for next Tata Sons chairman

Mumbai: Tata Trusts on Thursday initiated the process of finding N Chandrasekaran’s successor as chairman of Tata Sons, a day after he announced that he would not seek reappointment for a third term amid a lack of unanimity within the board. The Sir Dorabji Tata Trust, which is among the key Tata Trusts holding nearly two-thirds of Tata Sons, said its trustees had passed a resolution to begin setting up a selection committee as soon as possible. The committee will recommend a candidate for appointment as the new chairman of the Tata Sons board in accordance with the company’s Articles of Association.

“The Sir Dorabji Tata Trust respects Chandrasekaran’s decision not to offer himself for re-appointment,” the Trust said, while expressing its appreciation for his contribution and stewardship of Tata Sons and the Tata group over the past decade.

The Trusts said Chandrasekaran had guided the group through a period of significant change, growth and transformation. Noel Tata, who became chairman of the Tata Trusts after the death of his half-brother Ratan Tata, also heads the Sir Dorabji Tata Trust.

The Trusts said they would extend full support to Tata Sons to ensure a smooth, timely and orderly leadership transition, consistent with the long-term interests and values of the group. Chandrasekaran’s decision came suddenly on Wednesday, when he said he would not offer himself for reappointment for another term. He also stressed the need for clarity on the leadership issue at the earliest. The development marks a significant leadership transition for India’s largest diversified business group. Chandrasekaran became Tata Sons chairman in 2017 and oversaw expansion, restructuring and a greater focus on technology, manufacturing and consumer businesses.

The selection process will now become a key issue for Tata Trusts and the Tata Sons board, with the eventual choice expected to shape the group’s strategy and governance in the coming years.

After Chandra, who gets the Tata crown?

Saurabh Agrawal, a Tata veteran with experience at Tata Sons and in group-level strategy and finance, he could appeal if the Trusts want someone with a strong understanding of the holding company rather than another operating-company chief

Praveer Sinha, CEO of Tata Power, is also a credible internal candidate. His experience across power, infrastructure and the energy transition gives him a broad view of one of the group’s major growth areas

N Ganapathy Subramaniam, former COO of TCS, brings deep technology and group experience. However, compared with Narendran, his profile is less obviously suited to running the entire conglomerate

TV Narendran, Tata Steel’s MD and CEO, appears to be the strongest contender. He has spent nearly three decades in the Tata Group and combines operating experience with a deep understanding of the group’s culture and businesses. His name has already surfaced in reports on the succession race

There is also the possibility of an external candidate