Tata Sons chairman N Chandrasekaran will step down when his term ends on February 20 next year, bringing an end to a nearly year-long succession dispute at the conglomerate.
Chandrasekaran said he would not seek reappointment, stressing that clear leadership beyond February 2027 was important for employees, investors and other stakeholders.
His decision follows a boardroom tussle with Noel Tata, chairman of Tata Trusts, which ultimately controls the Tata Group. A person close to Noel said he was surprised by the announcement, while sources said he wants his son Neville to take on a larger role. Chandrasekaran had previously been expected to secure a third five-year term.
At a board meeting in February, Noel Tata raised concerns over the Tata Trusts’ earlier decision to back Chandrasekaran. He could also have faced a confidence vote at next week’s annual meeting, according to people familiar with the matter.
Chandrasekaran’s exit adds uncertainty at Tata Sons, which has no deputy chairman or clear succession plan. Vijay Singh, a Tata Trusts member, called the situation “unfortunate” and said Chandrasekaran would be difficult to replace given his execution skills.
The leadership change comes as Tata Sons faces a possible forced listing by the central bank, while Tata Consultancy Services shares have fallen sharply amid concerns over AI. Shareholders are due to meet next Tuesday, with Chandrasekaran’s reappointment on the agenda.
