The board of Tata Sons on Tuesday deferred a decision on the re-appointment of Natarajan Chandrasekaran for a third term as Chairman, according to sources, signalling potential differences within the holding company of the coffee-to-cars-and-software conglomerate.
According to sources, Noel Tata, the chairman of Tata Trusts, which owns two-thirds of the corporate grouping, set a slew of conditions for the reappointment of Chandrasekaran, which ultimately led to the decision being deferred.
Chandrasekaran’s term ends in February 2027, and the board of Tata Sons was discussing extending the same when a set of conditions was put forth by Noel Tata, sources said.
They said Noel Tata raised concerns about losses in certain group companies, and the conditions also include the addition of debt by Tata Sons, which would invite a situation where the group is forced to list on bourses.
Sources said Noel Tata was also not in favour of the listing of Tata Sons and wanted a written commitment.
The meeting, held at group headquarters Bombay House, was a long one, and the agenda item on reappointment was discussed at length, the sources said, adding that none of the four other directors, including Venu Srinivasan, Harish Manwani, Anita George and Saurabh Agrawal, had any issues with it.
As per sources, Chandrasekaran explained challenges in making a firm commitment on the listing not taking place at all, explaining that the regulations will have to take their own turn.
Chandrasekaran, 62, received the backing of several board members who felt the losses at one group company should not eclipse the group’s overall performance or the chair’s contribution over the years. Some directors called for a vote, but Chandrasekaran urged a deferral.
According to RBI’s regulations, a set of 15 entities, including Tata Sons, were given a September 30, 2025, deadline to list.
In response, Tatas have applied to surrender its core investment company (CIC) registration to avoid the listing mandate, but the central bank is reportedly yet to take a decision on the application, and Governor Sanjay Malhotra has said that an entity can continue doing business until its registration is not cancelled.
At one point during the deliberations, there was an idea of putting the proposal of reappointment to a vote, the sources said, adding that this is where Chandrasekaran requested deferring any decision on the item.
“I recommended that it should be deferred because that was the request by one of the directors,” Chandrasekaran told reporters while emerging from the building in the evening.
Declining to specify what transpired at the board meeting, he said “nothing changes” for Tata Sons.
There is no clarity on when the next board meeting will be held, while sources indicated that it will be held once some solutions are found.
Joining Tata Group in 1987, Chandrasekaran rose through the ranks to become the CEO of Tata Consultancy Services – the IT firm of the Tata Group – before taking charge as Tata Sons’ chairman in February 2017.
Chandrasekaran is widely credited with steering the diversified conglomerate through a period of restructuring and consolidation. Under him, Tata Group’s 15 largest listed companies almost doubled in revenue and profits.
His tenure has been marked by a series of high-stakes strategic bets – from advancing plans to establish India’s first homegrown semiconductor fabrication facility to taking over of loss-making Air India and steering cash engine Tata Consultancy Services through the sweeping disruption triggered by artificial intelligence.
Founded in 1868 in Mumbai by Parsi industrialist Jamsetji Nusserwanji Tata, the Tata Group remained under the leadership of the Tata family for most of its 156-year history. In 2012, Ratan Tata stepped down as chairman, handing over the reins to Cyrus Mistry of the Shapoorji Pallonji Group.
A dramatic boardroom fallout in 2016 led to Mistry’s abrupt removal by Tata Sons, in a move widely seen as a coup engineered by Ratan Tata. A lifelong bachelor with no children, Ratan Tata had no direct heir within the family to succeed him.
Mistry died in 2022, but the Shapoorji Pallonji Group continues to hold an 18 per cent stake in Tata Sons, making it the largest minority shareholder and has also been pressing for a listing. Following Ratan Tata’s death in 2024, his half-brother Noel Tata was appointed Chairman of Tata Trusts, the principal shareholder of Tata Sons.
Tata Trusts’ stake in Tata Sons gives it a decisive influence over key strategic and governance decisions at the apex holding company of the Tata Group.
Tata Sons, in turn, oversees a portfolio of around 30 operating companies spanning various sectors, such as consumer goods, automobiles, information technology and aviation. Major group entities include Jaguar Land Rover, Tata Consultancy Services, Tata Motors and Air India.
The ownership structure places Tata Trusts at the centre of governance for the diversified conglomerate, with Tata Sons functioning as the principal investment holding and promoter entity for group companies.
The latest set of differences comes months after top-level issues at Tata Trusts over differences between trustees were settled with the exit of one Mehli Mistry. Noel’s son Neville has also been gearing up to get inducted into some trusts within the Tata Trusts.
