Tata Sons has appointed Natarajan Chandrasekara, MD and CEO of India's largest technology company TCS, as the first non-Parsi and professional executive to head the $ 108 billion conglomerate. The much-awaited announcement came two and a half months after the Tatas sacked chairman Cyrus Mistry and recalled Ratan Tata as interim chairman.
The five-member selection committee said people familiar with its deliberations, wanted a "safe pair of hands" and felt an insider would be a stabilising influence in these challenging times. Chandra, as he is popularly known, will take over as executive chairman from February 21, becoming the seventh in the 149-year history of the salt-to-software conglomerate, and only the third 'non-Tata' after Mistry and Nowroji Saklatwala. An insider, Chandra has also delivered consistently over the seven years he has led TCS, revenues have grown 262 per cent since 2009-10, net profit 247 per cent, and it is the most valuable company in India with a market cap of £46.20 billion. It contributes 10 per cent to the group's total revenues, 40 per cent of its profit and 70 per cent of its market value.
Sources said the committee and four others initially considered a few external choices, but issues within the group possibly prompted them to consider a shift. JM Financial chairman Nimesh Kampani, who has long experience working closely with the Tatas, said, "Chandra's leadership style has the Tata ethos and values ingrained in it. At Tata Consultancy Services, he has worked with several Fortune 500 chief executives across the spectrum, which should help him steer India's largest conglomerate. What strikes me most about Chandra is his friendly demeanour and hard work. He is the first professional to head Tata Group and this should cheer its managers."
Former Tata Sons director R Gopalakrishnan said, "He is an outstanding choice. It is a tribute not only to Chandra's own qualities but also to the succession planning and management development systems of TCS. It is a pleasure to see what was three decades ago an insignificant company grow to become a major contributor to profits as well as to talent." Tata Sons released a statement saying that Chandra had demonstrated exemplary leadership at TCS, adding that he would "inspire the entire Tata group to realise its potential, acting as leaders in their respective businesses."
