N Chandrasekaran Gets Second Term as Tata Chief for Next Five Years

Tata Sons Private Ltd, the Tata Group’s holding company, has extended N Chandrasekaran’s term as executive chairman for another five years. On Friday, the Tata Sons Board of Directors examined Mr Chandrasekaran’s reappointment after reviewing the last five years of his tenure.

Tata Sons stated in a statement that Ratan N. Tata, who was a special invitee to the meeting, expressed his pleasure with the Tata Group’s progress and performance under Chandrasekaran’s leadership. “He recommended that his tenure be extended for another five years,” according to the statement.

Chandrasekaran, also known as Chandra, was appointed chairman of Tata Sons in January 2017, just months after Cyrus Mistry was fired. Since his tenure, the group has undergone a tremendous transformation, from the merger of numerous units to the acquisition of digital properties and, most recently, Air India.

He is Tata Sons’ first non-family professional executive. On February 20, the present term of the 58-year-old chairman, who has guided the automobile-to-aviation corporation through the current crisis, comes to an end.

Tata Sons reorganized the real estate and infrastructure sectors under his leadership, forming Tata Realty and Infrastructure Ltd. Tata Motors has also partnered with TPG Rise Climate to build a new passenger electric vehicle business, which is a significant move for the company in October 2021. Under the terms of the agreement, TPG Rise Climate, a fund within private equity firm TPG Inc, will invest Rs 7,500 crore in the new subsidiary. Tata Motors is expected to benefit greatly from the move.

His work was praised by the board, which unanimously supported his reappointment as Executive Chairman for another five years. “It has been a privilege to lead the Tata Group for the last five years and I am delighted at the opportunity to lead the Tata Group for another five years, in its next phase,” Chandrasekaran said.

Tata Sons is the Tata Group’s primary investment holding firm and promoter. The combined revenue of Tata enterprises in 2020-21 was $103 billion s. There are currently 29 publicly-listed Tata corporations with a total market capitalization of $314 billion as of December 31, 2021. These companies employ over 8,00,000 people.

According to sources, in addition to the reappointment, Tata Sons is likely to explore inducting three new members to the board. With the additions, the total board strength would increase to ten from seven.

The extension of Chandrasekaran’s chairmanship is significant as the chairman of Tata Sons is also chairman of companies promoted by Tata Sons. It would reassure Tata entities’ investors, particularly stock market heavyweight TCS, about leadership stability and strategic continuance. After Cyrus Mistry’s contentious retirement from the top job, Chandrasekaran was plucked from TCS, the group’s most lucrative subsidiary, and named chairman of Tata Sons on February 21, 2017. Following that, he was appointed chairman of various major corporations, including TCS, Tata Motors, Tata Steels, and Indian Hotels.