Tata board talks: Chairman Chandra gives the floor to Tata chiefs; calm prevails

Mumbai: Monday’s Tata Sons board meeting—under close watch for further signs of discord after recent, publicly aired differences of opinion—was marked by constructive and largely amiable discussions, said people familiar with the deliberations. Chairman N Chandrasekaran gave the platform over to chief executives of group companies to make detailed presentations before the board, including Tata Trusts chairman Noel Tata.

The previous board meeting, on February 24, was overshadowed by sharper scrutiny on the poor performance of some companies and the unresolved matter of Chandrasekaran’s tenure renewal. Tata Trusts controls Tata Sons with a 66% share.

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This time, much of Noel Tata’s attention and feedback remained focused on beleaguered Air India and BigBasket, while Tata Electronics emerged as a notable bright spot, with the board collectively impressed by its growth trajectory and strategic progress, said the people cited.

Agratas and Tejas Networks, smaller businesses, did not figure in the discussions.

A possible Tata Sons listing, among the matters that have given rise to friction, didn’t come up at the meeting.

This is the first time in the history of Tata Sons that a special board meeting was convened by its chairman to submit a business review to the Tata Trusts chairman, said the people cited.

The meeting reflected a noticeably calmer atmosphere than previous interactions, according to people cited, and ended without any major points of friction or unresolved confrontations.

Group CEOs presented their respective business plans, performance metrics and future strategies directly to the board, enabling detailed engagement and questions over operations, investments and execution.

The discussions on Air India and BigBasket occupied considerable time during the meeting, with updates shared on operational performance, investment requirements and the roadmap toward scale and profitability, reflecting continued emphasis on capital discipline and business outcomes.

Tata Electronics drew encouraging feedback from the board, with members said to be appreciative of the company’s rapid growth and expanding strategic relevance within the group’s manufacturing and technology ambitions.

Group watchers say it has to be seen if the less combative spirit sets the tone for the next board meet, which may consider the reappointment of Chandrasekaran for a third term.

“There is a surprise development coming up every other week in recent months in the group, so it is still a wait-andwatch situation,” said a senior group executive.

Noel Tata and Chandrasekaran had met separately on Friday ahead of the board meeting to discuss some of the high-stakes business issues. At the February 24 Tata Sons board meeting, Noel Tata had raised concerns over high-risk investments, losses in new businesses, an exit option for the SP Group and Tata Sons’ unlisted status, while suggesting a separate discussion with Chandrasekaran on these matters.

The Monday meeting largely HDFC Securities addressed queries raised by Noel Tata on performance, future growth and capital requirements for its newer businesses, including electronics and aviation.

The CEOs who made presentations included Randhir Thakur of Tata Electronics, Campbell Wilson of Air India and Sajith Sivanandan of Tata Digital. Also attending were Thomas Flack, CEO of Agratas, and Kumar Sivarajan, CTO of Tejas Networks.

All six directors of Tata Sons—Venu Srinivasan, Harish Manwani, Anita George and Sourav Agarwal, along with Noel Tata and Chandrasekaran—were physically present at group headquarters, Bombay House, for the meeting.

Noel Tata had previously raised concerns over losses at Air India and ecommerce business BigBasket, calling for course correction.

People familiar with the discussions said the presentations were focused on the relationship between capital allocation and business outcomes across emerging businesses, with Chandrasekaran outlining the long-term strategy and investment rationale underpinning the group’s newer bets.

The discussions come against the backdrop of ongoing engagement between Tata Sons and Tata Trusts over governance, capital discipline and strategic direction. The review also unfolds amid the wider discussion over Chandrasekaran’s proposed third term and speculation over whether the Reserve Bank of India may eventually mandate Tata Sons to list on stock exchanges, a development that some of the trustees do not favour.