Fabindia marks 66th anniversary, while Tata discusses future after Chandra

The departure of N. Chandrasekaran as chairman of Tata Sons has drawn attention to the long history of leadership changes within Tata Sons. He submitted his resignation just before the company's crucial Annual General Meeting (AGM), scheduled for August 18th.

Chandrasekaran took office in February 2017 and is the latest in a line of leaders who have guided Tata Sons, and consequently the entire Tata group, since Jamsetji Tata headed the enterprise in 1868.

History of Tata Sons Leadership

The first head of the Tata group was Jamsetji Nusserwanji Tata, the founder of the group. Born on March 3, 1839, he began his entrepreneurial journey in 1868 at the age of 29 when he established a trading company with a capital of 21,000 rupees. He later expanded operations into textiles, steelmaking, hydroelectric power, and education, laying the foundation for one of India's largest business groups.

Jamsetji's vision extended beyond business, encompassing employee welfare and philanthropy, which became an important part of his legacy. Although Jamsetji passed away in 1904, many of his major undertakings, such as the Tata Steel project and the Indian Institute of Science, were realized after his death.

The Era of Sir Dorabji Tata

Sir Dorabji Tata, Jamsetji Tata's eldest son, took over the leadership of the group after his father's death in 1904. He played a key role in realizing his father's vision of establishing the Indian steel industry, as the Tata Iron and Steel Company, now Tata Steel, began production in 1912. In 1910, he was knighted for his contribution to the industry of British India.

Under his leadership, the group expanded into sectors such as energy, hospitality, and insurance. In 1932, Dorabji Tata also founded the Sir Dorabji Tata Trust, laying the foundation for the institutional philanthropic activities of the Tata group. He died in 1932.

Successors in Leadership

Sir Navroji Saklatwala succeeded Sir Dorabji Tata as chairman of the Tata group in 1932, becoming the third leader. Being Dorabji Tata's cousin, he joined the Tata organization in 1901 and advanced through the ranks, playing an important role in expanding Tata's business. Saklatwala unexpectedly died in France in 1938 and was replaced by J. R. D. Tata.

Jehangir Ratanji Dadabhoy Tata (J. R. D. Tata) became chairman of Tata Sons in 1938, succeeding Sir Navroji Saklatwala. He led the group for over five decades, witnessing its transformation from a predominantly industrial enterprise to a diversified conglomerate. During his tenure, Tata entered sectors such as aviation, chemicals, automotive, hospitality, and information technology. Several major companies, including Tata Motors and Tata Consultancy Services (TCS), were established during his chairmanship. J. R. D. Tata received the Bharat Ratna, India's highest civilian award, in 1992.

The Ratan Tata Period

Ratan Naval Tata succeeded J. R. D. Tata as chairman of Tata Sons in 1991, taking charge during India's economic liberalization for global competition. During his 21-year tenure, the Tata group increased its global presence through acquisitions such as Tetley, Corus, Jaguar Land Rover, and Brunner Mond, while TCS grew into a major global IT services company.

Under his leadership, the group entered new markets and strengthened its presence in sectors such as automotive, steel, telecommunications, and hospitality. Ratan Tata stepped down as chairman in December 2012, handing over to Cyrus Mistry.

Cyrus Mistry and N. Chandrasekaran

Cyrus P. Mistry succeeded Ratan Tata as chairman of Tata Sons in December 2012, becoming the sixth chairman of the company. During his tenure, Mistry aimed to optimize the group's operations and increase capital efficiency while reviewing several enterprises and investments. His term abruptly ended in October 2016 when the Tata Sons board removed him from the chairmanship. Ratan Tata was appointed interim chairman after Mistry's removal and remained in that position until Chandrasekaran took over in February 2017.

Natarajan Chandrasekaran became chairman of Tata Sons on February 21, 2017, succeeding Ratan Tata, who served as interim chairman. He became the first non-Tata family member to lead the group in nearly 80 years. Previously, Chandrasekaran worked as CEO and Managing Director of TCS. During his tenure, the group expanded its presence in areas such as semiconductors, electronics manufacturing, electric vehicles, batteries, and aviation. Chandrasekaran will hold this position until the end of his current term in February 2027.

According to a report by Reuters, Tata Sons Chairman N. Chandrasekaran is considering stepping down before the annual general meeting (AGM) scheduled for August 18. This move comes amid growing uncertainty regarding his reappointment as a director of Tata Sons and internal disagreements within the Tata group.

Chandrasekaran's current term as chairman expires in February 2027, but his continued tenure in this role directly depends on the decision regarding his reappointment as a director of Tata Sons. Shareholders are set to vote on this matter at the AGM on August 18.

Reuters reported that Chandrasekaran has discussed the option of leaving with close associates to avoid a decision on his continuation of office at the general shareholders' meeting.

The uncertainty arose after disagreements surfaced between Chandrasekaran and Noel Tata, Chairman of Tata Trusts. The Tata Sons board postponed the decision on Chandrasekaran's reappointment as chairman in February after Noel Tata expressed concerns about the performance of some new group ventures.

Chronology of Chandrasekaran's Career at Tata Sons

Chandrasekaran's career at Tata Sons has a long history. He joined the Tata Sons board in October 2016, after spending several years leading Tata Consultancy Services (TCS). He initially started working at TCS in 1987, progressing through the ranks before becoming its CEO and Managing Director in 2009, and later Chairman of TCS in 2017.

January 2017: Assuming the Role of Chairman of Tata Sons

In January 2017, Tata Sons announced the appointment of Chandrasekaran as its new executive chairman. He took over this position from Ratan Tata, who returned as interim chairman after Cyrus Mistry was ousted from the post in October 2016. Chandrasekaran became the first non-Parsi and non-Tata to lead the group, thereby concluding the leadership structure closely tied to the Tata family.

During the 2017–2018 period, one of Chandrasekaran's primary focuses was simplifying the vast Tata group and strengthening its business verticals. Under his leadership, the group concentrated on sectors such as technology, consumer business, electric vehicles, aviation, and electronics. Tata Sons also worked on consolidating some of its enterprises and improving their financial efficiency.

From 2019–2021, the Tata group accelerated investments in new business areas. The group expanded its presence in fields such as digital services, electric vehicles, electronics manufacturing, and aviation. Tata Digital was established as the group's digital division, while Tata Motors intensified its focus on electric vehicles.

January 2022: Air India Returns to Tata Group

In January 2022, the Tata Group completed the acquisition of Air India from the government. The airline's return to the Tata Group was one of the most significant events during Chandrasekaran's tenure. Following this, Tata Sons integrated Air India, Vistara, and other aviation operations into the group's broader aviation segment. The group also announced plans to merge Air India and Vistara to create a larger full-service airline.

In February 2022, Tata Sons extended Chandrasekaran's term as executive chairman for another five years. His second term began in February 2022 and is scheduled until February 2027. This extension occurred as the group continued to implement investment plans in technology, digital business, electric vehicles, aviation, and manufacturing.

In 2023–2024, the Tata group accelerated its plans to build up manufacturing and electronics presence in India. Tata Electronics announced investments in semiconductor production and assembly, while the group expanded its plans in areas such as batteries and electric vehicles. The question of succession at Tata Sons became increasingly relevant as Chandrasekaran approached the end of his second term.

Concurrently, the Tata group continued to actively invest in entities such as Air India, Tata Electronics, and Tata Digital.

February 2026: Postponement of Reappointment Decision

According to a Reuters report, the Tata Sons board postponed the decision on Chandrasekaran's reappointment as chairman in February 2026. This decision followed comments from Noel Tata regarding the performance of some new group businesses. This development highlighted the relationship between Tata Trusts and the Tata Sons board. Tata Trusts is the largest shareholder of Tata Sons and plays a crucial role in the group's governance.

August 2026: Emergence of Departure Possibility

The latest development occurred just before the Tata Sons general shareholders' meeting on August 18. Shareholders are expected to vote on Chandrasekaran's reappointment as a director. Since his chairmanship is contingent on him being a director of Tata Sons, the vote is significant for his continued leadership of the group. Reuters reported that Chandrasekaran had discussed the possibility of stepping down with close associates. Deciding to leave office before the AGM could potentially circumvent a vote on his continuation of tenure.