Who will be next chairman of Tata Sons as N Chandrasekaran exits? Speculation swirls around 'proven insider'

Rumours are swirling over who will become chairman of India's largest conglomerate, Tata Sons, after N Chandrasekaran said he would not seek reappointment when his current term ends in February 2027.

The Sir Dorabji Tata Trust, one of the group's charitable institutions, passed a resolution to initiate the setting up of a selection committee "as soon as possible", Tata Trusts said in a statement on Thursday.

The $180-billion Tata Group, with businesses spanning aviation, cars, coffee and steel, has been grappling with a leadership crisis for nearly a year amid boardroom differences over issues including losses at some of its companies.

The situation escalated on Wednesday when Tata Sons chairman N Chandrasekaran announced that he would step down, citing a lack of support from one board member.

Although Chandrasekaran did not identify the director, several media reports have linked the disagreement to Noel Tata, half-brother of late Tata patriarch Ratan Tata and chairman of Tata Trusts. The charitable trusts collectively own around 66% of Tata Sons.

Who could succeed Chandrasekaran?

The key question now is: Who will succeed Chandrasekaran as Tata Sons chairman?

TV Narendran, 61, the managing director of Tata Steel, is among the names being considered as a possible successor to Chandrasekaran, The Times of India (TOI) reported.

People familiar with the matter told TOI that Noel Tata had not made any decision and that the group was not prepared for a leadership transition at this stage. One person close to Noel said Narendran “could be part of Noel's inner team".

A longtime Tata Group executive, Narendran joined Tata Steel in 1988 and has spent his entire professional career with the company. He has been at the helm of Tata Steel since 2013.

What did Harsh Goenka say?

A post by RPG Enterprises chairman Harsh Goenka added to the growing speculation over Chandrasekaran's successor.

“A fine manager's innings comes to an end. Chandra led TCS to great heights and steered the Tata Group with a steady hand. A few blemishes, digital business and Air India, but overall, a stellar managerial record. Now begins the succession speculation. My bet: TV Narendran, a proven Tata insider, strong operating track record, respected across the Group, low-key and with Tata values in his DNA. Let's see..."

While Tata Trusts does not play a role in the day-to-day management of the conglomerate, its shareholding in the parent company gives it decisive influence over the group's future.

How is the Tata Sons chairman selected?

Under the Articles of Association of Tata Sons, the company's chairman is chosen by a five-member selection committee. Three members are jointly nominated by the Sir Dorabji Tata Trust (SDTT) and the Sir Ratan Tata Trust (SRTT), while one is appointed by the Tata Sons board. The fifth member is an independent member selected by the board, TOI reported.

However, the selection process faces an immediate hurdle as SRTT is currently unable to take part in the process. The trust has been barred from convening trustee meetings following a directive from the Maharashtra Charity Commissioner, which regulates public charitable trusts in the state.

The order was issued in May as part of an inquiry into whether the number of lifetime trustees on SRTT's board violates Maharashtra's public trusts laws.