Tata Trusts to set up selection panel to pick N Chandrasekaran’s successor at Tata Sons

The Sir Dorabji Tata Trust (SDTT) will initiate the process of selecting N Chandrasekaran’s successor as chairman of Tata Sons, a day after he decided not to seek reappointment when his current tenure ends on February 20, 2027.

The trust said on Thursday that its nominee directors received an email from Chandrasekaran on August 12 conveying his decision. Its trustees have now passed a resolution to set up a Selection Committee “as soon as possible” under the Articles of Association of Tata Sons to recommend a candidate for appointment as the new chairman.

The development formally sets the succession process in motion at Tata Sons after months of uncertainty over Chandrasekaran’s reappointment.

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The SDTT said it respected his decision and thanked him for his contribution to Tata Sons and the Tata group.

“We thank him for his immense contribution during a period of significant change, growth and transformation across the Group,” the trust said.

The trust also said it would support Tata Sons during the leadership transition.

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“We extend our full support to Tata Sons in ensuring a smooth, timely and orderly transition of leadership, consistent with the values and long-term interests of Tata Sons and the Tata group,” it said.

Why Chandrasekaran opted out

ET reported on Wednesday that Chandrasekaran’s decision followed a failure to secure unanimous support for his proposed five-year extension.

According to Chandrasekaran’s statement, the Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously recommended extending his term by five years. The Tata Sons Nomination and Remuneration Committee and the board subsequently recommended the proposal.

The resolution was placed before the Tata Sons board on February 24, but “the proposal was not carried through because one of the Board Members did not support it”. Chandrasekaran said that “in the absence of unanimous support, I chose to defer the decision.”

Six months later, the issue remained unresolved.


“Tata Sons is a very large institution and there are many strategic projects that are under critical stages of execution,” Chandrasekaran said. “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.”

He subsequently informed the board that he would not offer himself for reappointment and asked it to “decide on the succession soon to ensure a proper transition.”

ET had first reported on August 12 that Chandrasekaran was considering stepping down amid uncertainty over his continuation as a director of Tata Sons. His current chairmanship runs until February 2027, but his continuation until then was linked to his reappointment to the Tata Sons board at the August 18 AGM.

Tata group at a transition point

Chandrasekaran’s exit comes as the Tata group is pursuing investments and expansion across aviation, electronics, semiconductors, digital businesses and other newer areas. ET reported that the next chairman will inherit businesses including Air India and Jaguar Land Rover, while TCS faces the shift towards artificial intelligence and the group’s semiconductor and advanced manufacturing projects are still being developed.

The leadership change also comes amid tensions between Tata Trusts and Tata Sons. Tata Trusts owns about 66% of Tata Sons. The group is also dealing with governance questions involving the trusts and changes to the Tata Sons board.

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Tata group revenue reached ₹13.3 lakh crore in FY26, while the group’s market value and profits also increased significantly during Chandrasekaran’s tenure.

The selection of the next chairman will therefore determine not only the group’s leadership but also its approach to the investments and businesses built up during Chandrasekaran’s tenure.

For now, Chandrasekaran will remain chairman until February 20, 2027.

The SDTT’s decision to establish a Selection Committee marks the first formal step towards finding his successor.