Who will replace Chandrasekaran at Bombay House? A Tata veteran's name does the rounds

Tata Sons chairman N Chandrasekaran will not seek reappointment in February 2027. The Sir Dorabji Tata Trust has begun the succession process for the next chairman. A complication arises as the Sir Ratan Tata Trust cannot convene trustee meeting...

Agencies
Tata Trusts begins hunt for the next Tata Sons Chairman
The Tata group now faces the task of finding a successor to N Chandrasekaran, with Tata Steel MD TV Narendran emerging as a name in the succession discussions, after the Tata Sons chairman decided not to seek reappointment when his current term ends on February 20, 2027, as per a report by Times of India's Reeba Zacharia.

The Sir Dorabji Tata Trust has already moved to begin the succession process, but an unusual hurdle now hangs over the search for the next occupant of Bombay House.

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


The Sir Dorabji Tata Trust said it respected Chandrasekaran’s decision and thanked him for his contribution to 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.

It also promised to support Tata Sons through the change in leadership.
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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.

Who will choose the next Tata Sons chairman?

According to a report by The Times of India, the chairman of Tata Sons is selected by a five-member committee. Three members are nominated jointly by the Sir Dorabji Tata Trust and Sir Ratan Tata Trust, one is nominated by the Tata Sons board and the fifth is an independent member chosen by the board.

The succession process, however, faces a complication involving the Sir Ratan Tata Trust. The trust is currently unable to convene trustee meetings following a directive from the Maharashtra charity commissioner, according to TOI.

This could make the constitution of the succession committee more complicated as Tata Sons begins the process of finding Chandrasekaran’s replacement.
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Can Noel Tata step in?

One possibility that has emerged is Noel Tata, chairman of Tata Trusts and a Tata Sons director.

However, TOI reported that Noel may not be able to take the same route that Ratan Tata did in 2016.
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After Cyrus Mistry was removed as Tata Sons chairman in October 2016, Ratan Tata returned as interim chairman at the age of 78. Chandrasekaran was subsequently appointed to lead the group.

Also Read: Tata chair N Chandrasekaran’s exit leaves $120 billion spending ambition in limbo

Tata Sons' amended Articles of Association now bar the chairman of Tata Trusts from simultaneously serving as chairman of Tata Sons. The provision was introduced in 2022, with Ratan Tata being the last person to hold both positions.

Noel is also due to retire from the boards of other Tata group companies in November under the group's policy that sets 70 as the retirement age for non-executive directors. However, he can continue as a Tata Sons director because Trust nominees are not subject to that retirement age, according to TOI.

TV Narendran among names in circulation

One name being discussed for the top position is TV Narendran, 61, managing director of Tata Steel, according to TOI.

Narendran joined Tata Steel in 1988 and has spent his career with the company. He became its managing director in 2013 and has overseen the steelmaker through a period of transformation.

His connection with the Tata leadership also runs through Noel Tata. Noel is vice-chairman of Tata Steel, while Narendran has described late Tata group chairman Ratan Tata as a mentor who guided him and the steelmaker through a difficult period.

For now, Chandrasekaran remains in the chair until February 2027, giving Tata Sons time to complete the succession process.

But with the Tata Trusts now formally moving to constitute the Selection Committee, the focus will shift to who gets a place on the panel and who ultimately emerges as the next chairman of one of India's largest business groups.
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