Mumbai : Tata Sons Chairman N Chandrasekaran has stepped down from his position, though he will remain in charge until his current term concludes in February. The resignation comes at a turbulent time for the Tata Group, which is navigating multiple challenges across its business portfolio, and follows a rift between Tata Sons and Tata Trusts over the question of extending his tenure.
The source, speaking on condition of anonymity given the sensitivity of the issue, said Chandrasekaran has resigned but will continue to fulfil his duties until his term officially ends in February. Tata Sons serves as the principal holding company of the $400-billion Tata Group, overseeing more than 30 companies including Tata Consultancy Services (TCS), Tata Motors, and Air India. Tata Trusts, the group’s philanthropic arm, holds a 66% stake in Tata Sons.
The exit follows weeks of friction over Chandrasekaran’s reappointment. Back in February, Tata Sons had deferred a decision on extending his term after Noel Tata, chairman of Tata Trusts, objected to the move, according to an earlier Reuters report. Noel Tata reportedly sought several conditions before backing the extension, including an assurance that Tata Sons would never go public through a listing.
Chandrasekaran was unwilling to make that commitment, a source said. The two sides also clashed over matters of board representation. News of the resignation triggered a sharp selloff across Tata Group’s listed companies on Wednesday, with group stocks falling as much as 4%. TCS, India’s largest IT services exporter, led the decline with a 4.1% drop, while Tata Motors, parent of Jaguar Land Rover, slipped 2.8%.
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