The clock is ticking on Tata Sons Pvt. Ltd.’s leadership transition. Sir Dorabji Tata Trust, the largest shareholder of the salt-to-software conglomerate, has started the process of setting up a selection committee to recommend a successor to Chairman N. Chandrasekaran, whose second five-year term ends on 20 February 2027.
The move comes a day after Chandrasekaran told the Tata Sons board that he would not seek a third term. He said a proposal to extend his tenure by five years was not carried after Tata Trusts Chairman Noel Tata opposed it, making unanimous support unavailable.
Sir Dorabji Tata Trust and Sir Ratan Tata Trust together own 51.4% of Tata Sons and will jointly nominate three of the five members of the selection committee. The Tata Sons board will nominate one member, while another independent member will be chosen by the board. The committee chair will be selected by the two trusts from among their nominees.
Sir Dorabji Tata Trust said it fully supports a “smooth, timely and orderly” transition and thanked Chandrasekaran for his stewardship during a period of significant change and growth.
But there is a wrinkle. A Maharashtra Charity Commissioner order currently prevents Sir Ratan Tata Trust from holding board meetings or taking decisions affecting its composition. That could complicate the formation of the committee and potentially slow the succession process.
The leadership search now puts the spotlight on who could steer the $300-billion-plus Tata Group into its next chapter. Read more.
Read more of Mint’s coverage from the shake-up at Tata Sons
Tata Group faces $120 billion dilemma as N Chandrasekaran exits
Chandra’s exit underlines a lack of succession planning at Tata Sons
India’s stock market settled little changed, as stalled West-Asia peace efforts offset the impact of easing Fed rate hike worries and upbeat earnings.
The benchmark NSE Nifty 50 fell 0.16% to 24,395.85 points while the BSE Sensex ended the day 0.15% lower at 78,079.96. Ten of the 16 major sectors declined. The broader small caps and midcaps rose 0.3% and 0.2%, respectively.
The Nifty Bank index fell 0.4% on concerns over potential margin hit from the Reserve Bank of India’s proposed loan-pricing rules. Tata Group stocks steadied after losing $4.6 billion on Wednesday, as investors assessed N. Chandrasekaran’s decision not to seek another term as Tata Sons chairman.
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SNEAK A PEEK
Long Story, a much-loved Mint feature, is published every weekday. Before the next piece hits the stands, here’s your exclusive glimpse into what’s brewing on our desk. Catch the story in the morning edition.
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Phone calls, messages and in-person visits are allowed strictly between 8:00 am and 7:00 pm, while agents must identify themselves, record calls and give advance notice before field visits.
Banks and non-banking finance companies (NBFCs) remain responsible for third-party agents’ conduct and must compensate borrowers for misconduct. As new-to-credit borrowers grow, the rules aim to make loan recovery more transparent, accountable and, importantly, less intimidating. Read more.
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