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Business News/ Companies / News/  For next phase, Tata Sons renews bet on trusted face
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For next phase, Tata Sons renews bet on trusted face

N Chandrasekaran to be chairman of sprawling conglomerate for another five years

The board members commended Chandrasekaran’s performance and unanimously approved his reappointment. (Mint)Premium
The board members commended Chandrasekaran’s performance and unanimously approved his reappointment. (Mint)

Tata Sons Ltd’s board extended the tenure of its executive chairman N. Chandrasekaran by five years, definitively putting to rest any speculation that the holding company of India’s largest conglomerate may seek change of guard or structure at the helm.

The decision by Tata Sons is a stamp of approval of Chandrasekaran’s steering of the conglomerate that has led to an almost threefold rise in the market value of all group companies in his first term despite disruptions, especially the coronavirus pandemic.

Ratan Tata, family scion and chairman emeritus, who was a special invitee to the board meeting on Friday, expressed his satisfaction with the progress and performance of Tata group under the leadership of Chandrasekaran, according to a statement from Tata Sons. The board members commended Chandrasekaran’s performance and unanimously approved his reappointment.

“It has been a privilege to lead the Tata Group for the last five years, and I am delighted at the opportunity to lead the Tata Group for another five years, in its next phase," said Chandrasekaran, who was formerly the chief executive and managing director of Tata Consultancy Services Ltd, India’s top software services exporter.

Chandrasekaran took over the chairman’s post in 2017 after a messy boardroom battle that saw the ouster of Cyrus Mistry as chairman.
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Chandrasekaran took over the chairman’s post in 2017 after a messy boardroom battle that saw the ouster of Cyrus Mistry as chairman.

Chandrasekaran took over the chairman’s post in 2017 after a messy boardroom battle that saw the ouster of Cyrus Mistry as chairman.

Under Chandrasekaran, the market capitalization of all listed Tata group companies climbed from 8.16 trillion as of January-end 2017 to 23.46 trillion as of Friday.

Tata Sons is the principal investment holding company and promoter of Tata companies. As much as 60% of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation, and art and culture. The trusts are helmed by Ratan Tata.

In 2020-21, the Tata group comprising 30 companies across 10 verticals recorded combined revenue of $103 billion ( 7.7 trillion). These companies collectively employ more than 800,000 people.

There are 29 publicly-listed Tata enterprises with a combined market value of $314 billion ( 23.4 trillion) as of December end. These include Tata Consultancy Services, Tata Motors, Tata Steel, Tata Chemicals, Tata Consumer Products, Titan, Tata Capital, Tata Power, Tata Communications, Indian Hotels, Tata Digital and Tata Electronics.

Under Chandrasekaran’s leadership, the group recently took control of loss-making national carrier Air India.

Chandrasekaran’s tenure also saw the group sharpen its focus on digital businesses where it is building an e-commerce superapp while also exiting some struggling businesses such as wireless telecom.

In a year-end communication to employees, Chandrasekaran highlighted digital, new energy, supply chain resilience, and health as the key focus areas for the group in the coming years.

“Our companies are already adapting to these changes, and we are witnessing a stronger performance. Our new pilots and businesses, from 5G to TataNeu and Tata Electronics, are poised to benefit from these four themes," he wrote.

On the digital front, the group has made several acquisitions and investments in the last year, starting with purchasing a controlling stake in online grocer BigBasket, followed by the acquisition of online pharmacy 1mg. The group also picked up a controlling stake in telecom gear maker Tejas Networks in 2021 while announcing plans to invest heavily in manufacturing mobile phones and components under Tata Electronics.

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ABOUT THE AUTHOR
Swaraj Singh Dhanjal
" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
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Published: 11 Feb 2022, 11:26 PM IST
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