Tata Sons Succession: Trusts Begin Process To Replace Chandrasekaran

The trustees of Sir Dorabji Tata Trust have passed a resolution to initiate the setting up of a selection committee to recommend a new chairman of Tata Sons, according to a Moneycontrol report. The resolution was passed on Thursday, a day after N Chandrasekaran announced that he would not seek reappointment as chairman of the Tata Group’s holding company.

The selection committee will be formed in accordance with the Articles of Association of Tata Sons and will recommend a person for appointment as the new chairman of its board of directors. Chandrasekaran will complete his current term in February 2027.

Tata Trusts Begin Succession Process

Chandrasekaran’s decision followed months of uncertainty over his reappointment. He cited a lack of backing from the board as the reason for deciding not to seek another term.

Tata Trusts, the charity arm that owns 66% of Tata Sons, controls the holding company, which in turn oversees more than 30 companies across the conglomerate.

The Sir Dorabji Tata Trust said it respected Chandrasekaran’s decision and appreciated his contribution to Tata Sons and the Tata Group over the past decade. “We place on record our deepest appreciation for his contribution and stewardship of Tata Sons and the Tata group over the past decade,” the Trust said in a statement, as reported by the publication.

The Trust also thanked Chandrasekaran for his contribution during a period of significant change, growth and transformation across the group.

Tata Group Faces Challenges Across Businesses

Chandrasekaran leaves behind a group with major ongoing projects across aviation, semiconductors, electric vehicles, batteries, electronics and technology.

Air India has faced regulatory scrutiny following a fatal crash, while Tata Consultancy Services has been dealing with pricing pressure. Jaguar Land Rover was also hit by a cyberattack that disrupted production and affected Britain's economic output.

The group’s semiconductor facilities also remain under development, while its EV, battery, electronics and AI ambitions require further investment.

The selection committee will now recommend a candidate for appointment as the next chairman of Tata Sons. Chandrasekaran will continue in his role until February 2027, when his current term ends.