Inside N Chandrasekaran’s Tata Legacy: Big Bets, Big Ambitions And Unfinished Projects

N Chandrasekaran’s decision not to seek another term as Tata Sons chairman marks the eventual end of a nearly decade-long stint at the helm of the Tata Group. Chandrasekaran, who resigned on August 12, will continue in the role until his current term ends on February 20, 2027. He has also asked the board to begin the succession process soon, saying several strategic projects remain at critical stages of execution.

During his tenure, Tata expanded into businesses ranging from aviation and electric vehicles to electronics, semiconductors and artificial intelligence (AI). The transformation has created new growth avenues, but several of the biggest bets are yet to mature.

The Transformation After Ratan Tata

Chandrasekaran took charge of Tata Sons in January 2017, after the removal of Cyrus Mistry and Ratan Tata’s return as interim chairman. He was chosen after spending three decades at Tata Consultancy Services (TCS), where he rose to become CEO in 2009.

One of his early priorities was to simplify the sprawling Tata Group and strengthen its businesses. Over time, however, the strategy expanded into newer areas, including technology, consumer businesses, electric vehicles, aviation and electronics.

The shift marked a move towards sectors that Tata saw as important for its next phase of growth, while continuing to build on its established businesses.

From TCS Executive To Tata Sons Chairman

Chandrasekaran joined TCS in 1987 and spent more than three decades at the IT company before taking over Tata Sons. His appointment also marked a break from the group’s traditional leadership structure, as he became the first non-Tata and non-Parsi to head the conglomerate.

His technology background was significant as Tata increasingly focused on digital businesses and high-tech manufacturing. The group’s strategy under Chandrasekaran gradually moved beyond managing its traditional portfolio towards building capabilities in areas such as electronics, semiconductors and AI.

The Return To Aviation

The return of Air India to the Tata Group was one of the defining moves of Chandrasekaran’s tenure. Tata completed the acquisition of the loss-making airline from the government in January 2022 and subsequently brought its aviation operations under a broader structure, including the merger of Air India and Vistara.

The ambition was to build a large Indian airline with a global network. But the turnaround has also proved challenging. Air India’s revenue fell to ₹71,870 crore in FY26 from ₹78,636 crore a year earlier. Air India reported a loss after tax of ₹15,367.75 crore, while Air India Express reported a loss of ₹6,767.29 crore, according to figures cited by PTI from the Tata Sons annual report.

Chandrasekaran has said Air India’s transformation should be viewed as a five-to-10-year journey, citing fleet renewal, legacy systems, culture, supply-chain disruptions and the need to build a large pool of airline professionals. There have also been signs of improvement: Air India’s NPS rose from -35 in FY23 to +42 in June 2026, according to Chandrasekaran’s letter in the Tata Sons annual report.

Building An Electronics Empire

Electronics manufacturing became another major pillar of the group’s strategy.

Tata Electronics expanded its manufacturing ambitions as Tata sought a larger role in the global high-tech supply chain. Its revenue rose to ₹1.3 trillion in FY26, making it Tata Sons’ largest unlisted business by revenue, according to Mint. However, its loss widened to ₹1,611 crore, partly due to investments in Dholera and a fire at its Hosur facility.

The scale of the ambition was already evident in 2024. Chandrasekaran said investments in semiconductors, precision manufacturing, EVs, batteries and related industries could create five lakh manufacturing jobs in five years.

Tata’s Semiconductor Gamble

Semiconductors are perhaps the clearest example of Tata’s attempt to build an entirely new industrial capability.

Tata Electronics is developing a semiconductor fabrication facility in Dholera, Gujarat, involving an investment of around ₹91,000 crore. It is also setting up a chip packaging facility in Assam with an investment of ₹27,000 crore, according to PTI.

The Dholera facility is initially expected to manufacture chips at 28-nanometre nodes and above. Tata is also working with global semiconductor and technology companies as it seeks to build an ecosystem around the plants.

The ambition extends beyond chip manufacturing. Chandrasekaran said in February that Tata was working across the AI ecosystem, from data centres and software to industry-specific AI chips, with automotive applications among the areas being considered.

The EV And Battery Bet

Tata’s push into electric vehicles has largely been led by Tata Motors, while Tata Power has been building capabilities around the wider energy ecosystem.

Tata Motors announced an investment of ₹18,000 crore in EVs through FY30, while Tata Power said it would invest up to ₹75,000 crore over five to six years in renewable power.

Alongside battery investments and electronics manufacturing, these moves point to a broader attempt to build capabilities across the electric mobility and energy ecosystem rather than focusing only on vehicle sales.

The Businesses Still In Transition

The transformation has produced mixed results across the group.

Tata Sons’ 16 privately held businesses recorded a combined loss of ₹27,854 crore in FY26, with Air India accounting for 80% of it, according to Mint. Tata Electronics also remained loss-making despite its sharp increase in revenue.

At the same time, Tata’s established listed businesses have performed strongly. Their combined profit rose from ₹18,976 crore in FY19 to ₹85,510 crore in FY24.

The contrast shows the different stages of Chandrasekaran’s strategy: established businesses have continued to generate growth, while several newer, capital-intensive bets are still being built or turned around.

What Chandrasekaran Leaves Behind

Chandrasekaran leaves Tata Sons with a group that is broader and more deeply invested in technology and manufacturing than the one he inherited in 2017.

But many of his biggest projects remain works in progress. Air India requires a sustained turnaround, semiconductor facilities need to be built and scaled, and Tata’s EV, battery, electronics and AI ambitions will require further investment.

His decision not to seek another term follows months of uncertainty over his reappointment. In February 2026, Tata Sons deferred a decision on extending his tenure after Noel Tata, chairman of Tata Trusts, opposed the move. According to Reuters, the two sides had differences over issues including board representation, strategy, Air India’s losses and the handling of the planned exit of a minority shareholder. The agency also reported that Noel Tata had sought assurances on issues including Tata Sons’ potential listing.

Chandrasekaran said the proposal for a five-year extension did not receive unanimous board support and that no resolution had been reached in six months. He has now asked the board to decide on succession soon.

For the next chairman, the task will be to carry forward these large bets while overseeing their transition from major investments and projects into mature businesses.