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N Chandrasekaran exits Tata Sons, group stocks fall up to 4 per cent
He will complete his term but will not seek reappointment amid Tata Trusts tensions
Mumbai: N Chandrasekaran has resigned as chairman of Tata Sons, bringing uncertainty over the leadership of the Tata Group’s holding company ahead of its August 18 annual general meeting.
Chandrasekaran tendered his resignation on August 12 and will complete his current term, which runs until February 2027. He will not seek reappointment for another term, according to reports.
The development comes months after Tata Sons deferred a decision on extending Chandrasekaran’s tenure. The move followed opposition from Noel Tata, chairman of Tata Trusts, which holds around 66 per cent of Tata Sons.
Chandrasekaran had been expected to seek a third term, but the February board meeting that was to consider his reappointment was postponed. Discussions around Tata Sons’ debt levels, a potential public listing and the group’s relationship with the Shapoorji Pallonji Group were among the issues surrounding the decision.
Chandrasekaran took charge of Tata Sons in 2017 after previously serving as chief executive of TCS. He became the first non-founder and non-heir to lead the conglomerate and was appointed to the role by the late Ratan Tata.
During his tenure, the group expanded its focus beyond traditional businesses into areas including semiconductors, electronics, batteries, digital businesses and aviation.
Chandrasekaran also holds chairmanships at several major Tata companies, including TCS, Tata Motors and Tata Consumer Products.
His departure comes as Tata Group companies pursue several large-scale investments while navigating strategic questions around the future structure of Tata Sons.
Shares of Tata Group companies came under pressure following the news, with TCS leading the decline. TCS shares fell more than 4 per cent to Rs 2,322 in morning trade, while Tata Motors Passenger Vehicles declined around 4 per cent.
Tata Consumer Products and Tata Power also fell around 2 per cent.
The immediate focus will now shift to the August 18 AGM and the process for determining Chandrasekaran’s successor, as the Tata Group enters a new phase of leadership at its holding company.
