Feb 24 (Reuters) – India’s salt-to-software Tata Group has deferred a choice on reappointing N Chandrasekaran as chairman for one more 5 years, CNBC-TV18 reported on Tuesday, citing sources.
Chandrasekaran, 62, joined the Tata Group in 1987 and rose by means of the ranks to turn into the CEO of Tata Consultancy Companies in 2009 earlier than taking cost as Tata Sons’ chair in February 2017.
Through the board assembly, Tata Trusts chairman Noel Tata raised the difficulty of losses in sure group firms, and requested that Chandrasekaran commit in writing that Tata Sons won’t ever be listed, the CNBC-TV18 report stated.
A number of board members backed Chandrasekaran, arguing that losses at one group firm shouldn’t eclipse the group’s general efficiency or the chair’s contribution through the years, in accordance with the report.
Whereas some administrators known as for a vote, Chandrasekaran urged a deferral, CNBC-TV18 reported.
Tata Sons didn’t instantly reply to a Reuters request for remark.
Tata Trusts owns a 66% stake in Tata Sons, giving it energy over main strategic selections. Tata Sons, in flip, oversees 30 companies starting from shopper items, autos and airways, together with the likes of Jaguar Land Rover, Tata Consultancy Companies , Tata Motors and Air India.
The disagreement inside Tata Trusts, greater than a 12 months after the dying of household patriarch Ratan Tata, has raised fears of a repeat of a bitter 2016 public spat between the charity and Tata Sons that tarnished the fame of India’s most storied group.
Based in 1868 in Mumbai by Parsi industrialist Jamsetji Nusserwanji Tata, the Tata Group remained below the management of the Tata household till 2012, when Ratan Tata handed over the chairmanship to Cyrus Mistry of the Shapoorji Pallonji Group.
In 2016, tensions between Tata and Mistry led Tata Sons to take away Mistry as chairman. Mistry handed away in 2022, however his household’s agency, Shapoorji Pallonji, continues to carry an 18% stake in Tata Sons.
Following Ratan Tata’s dying in 2024, his half-brother Noel Tata was appointed head of the Tata Trusts.
Over the previous 12 months, Chandrasekaran has confronted a sequence of challenges, together with intense regulatory scrutiny on Air India after a deadly crash, pricing strain at crown-jewel Tata Consultancy Companies, and a cyberattack at Jaguar Land Rover that disrupted manufacturing and dented Britain’s financial output. (Reporting by Chandini Monnappa and Kashish Tandon in Bengaluru; Enhancing by Mrigank Dhaniwala)