Who Will Replace Chandrasekaran? Tata Trusts May Decide By Year-End

Tata Trusts is likely to identify a successor to Tata Sons chairman N Chandrasekaran by the end of this year, with the formal search expected to take around one and a half to two months once the selection committee is constituted, according to a Moneycontrol report.

Chandrasekaran has decided not to seek another term when his current tenure ends in February 2027. The group therefore has several months to complete the selection process and ensure an orderly transition.

Internal Candidates May Get Preference

Tata Trusts may lean towards an internal candidate familiar with the Tata Group and its governance structure, although discussions are still at an early stage and no decision has been taken, according to the publication.

Tata Steel CEO and managing director T V Narendran and Tata Power CEO and managing director Praveer Sinha are among the senior executives whose names could potentially be considered, the report said. However, there is currently no shortlist and both internal and external candidates could be evaluated.

The preference for an internal candidate, if it emerges, could reflect the complexity of the group and its governance relationship with Tata Trusts, the publication reported. Chandrasekaran himself was an internal candidate when he was chosen to lead Tata Sons in 2017 after nearly three decades at Tata Consultancy Services.

SRTT Issue Holds Key To Timeline

The immediate hurdle is the restriction on the Sir Ratan Tata Trust (SRTT) from convening meetings following a direction from the Maharashtra Charity Commissioner. The publication reported that Tata Trusts had earlier said the direction was issued without SRTT being given notice or a hearing.

The issue matters because SRTT and the Sir Dorabji Tata Trust (SDTT) have to jointly nominate three members of the five-member selection committee. The two trusts’ nominees will therefore form a majority of the committee, while the Tata Sons board will nominate one member and an independent member will be selected by the board.

Tata Trusts collectively owns around 66% of Tata Sons, according to Moneycontrol. The report said the search cannot formally begin until the committee is constituted, making the resolution of the SRTT restriction critical to the timeline.

If the restriction is resolved and the committee starts functioning in the coming weeks, people familiar with the discussions expect the successor to be identified by the end of 2026, leaving time for a transition before Chandrasekaran’s term ends in February 2027.