N CHANDRASEKARAN will step down as Chairman of Tata Sons when his current term ends in February 2027, drawing curtains on a decade at the helm of one of India’s most influential business groups after a prolonged standoff over his reappointment with Tata Trusts Chairman Noel Tata. Chandrasekaran, 63, who has spent 40 years with the Tata Group, on Wednesday said he had informed the Tata Sons board that he would not offer himself for reappointment when his term ends on February 20, 2027. He asked the board to settle on a successor soon to ensure a smooth transition. The decision follows months of uncertainty over his continuation at Tata Sons, the principal holding company and promoter of Tata group companies. Philanthropic trusts collectively hold 66 per cent of Tata Sons, giving Tata Trusts significant influence over the group’s governance. Chandrasekaran, widely known as Chandra, said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust, which together hold 51.54 per cent of Tata Sons, had unanimously recommended a five-year extension of his term. The proposal was subsequently recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the board, he said. The proposal was tabled at a February 24 board meeting but was not carried through after one Director did not support it.

 

Without naming who opposed the proposal, Chandrasekaran said he chose to defer the decision in the absence of unanimous support. Six months later, with no resolution reached, he said the leadership uncertainty had become untenable as Tata Sons oversees several strategic projects at critical stages. The impasse had been linked to differences between Chandra and Noel Tata, who became Chairman of Tata Trusts in 2024 following the death of Ratan Tata. Tata had reportedly sought assurances that Tata Sons would not be publicly listed, a position Chandra did not agree to. The disagreement also involved questions over board representation. Tata had also reportedly sought greater clarity from Chandra on the group’s fiveyear strategic roadmap, ways to provide an exit to the Shapoorji Pallonji Group without taking Tata Sons public, and his position on the longdebated listing of Tata Sons. The tensions had not completely paralysed the board. A Tata Sons meeting held in May was described by people familiar with the deliberations as constructive, with Noel Tata focusing on businesses, including Air India and BigBasket, while Chandra led reviews of group companies. “I have completed 40 years of professional life at the Tata Group. I am grateful for the immensely satisfying opportunity to contribute to this venerable institution,” he said in the statement on Wednesday.