Tata Sons Chairman N Chandrasekaran Announces Departure After Transformative Decade

Tata Sons chairman Natarajan Chandrasekaran will demit office at the end of his current term in February next year, the company announced on Wednesday. His tenure, which began in 2017, will be remembered for steering the 150-year-old conglomerate into new technological frontiers, from semiconductor fabrication to consumer internet services, and for the bold acquisition of Air India.

Chandrasekaran joined Tata Consultancy Services (TCS) as a trainee in 1987 and rose to become its chief executive in 2009. Under his leadership, TCS became India's most valuable listed company, with a strong global footprint. He served the IT services major for 30 years before being chosen to lead Tata Sons in 2017. Known for his marathon running and disciplined work ethic, he was seen as a leader who could navigate complex situations with patience and endurance.

His appointment followed the abrupt removal of Cyrus Mistry as chairman in October 2016 after a boardroom conflict. Chandrasekaran joined the Tata Sons board in October 2016 and was confirmed as chairman in January 2017 by a selection committee. At the time, he was described as the group's most successful CEO and a natural choice. He was also the first non-Parsi to lead the group, a position he held with the complete backing of Ratan Tata.

Chandrasekaran was known for his 'One Tata' strategy, aimed at bringing synergy, simplicity and scale to the group's diverse businesses. He placed significant bets on semiconductors, electronics manufacturing, battery giga-factories and digital platforms—areas new to a conglomerate traditionally known for salt, steel and software. These investments were aimed at positioning the group for long-term growth in a rapidly changing global economy.

One of his most notable achievements was the acquisition of Air India in 2022, a move that marked the Tata group's return to aviation. The purchase was seen as a bold attempt to build a global airline out of India.

However, his tenure was not without difficulties. Air India and the digital unit Tata Digital were among businesses that reported significant losses. The group also dealt with a cyberattack at Jaguar Land Rover and the fallout from a plane crash involving an Air India flight. Chandrasekaran had to manage these crises while also addressing demands from minority shareholder Shapoorji Pallonji Group, which sought a listing of Tata Sons and had raised governance concerns.

The internal dynamics changed after Ratan Tata's death in October 2024. His half-brother, Noel Tata, took over as chairman of Tata Trusts, which holds a 66% stake in Tata Sons. The change in leadership at the trusts led to an internal reshuffle, with several long-time executives leaving the group.

On Wednesday, Chandrasekaran issued a statement saying that while his third five-year term—beginning in February 2027—had been cleared by Tata Trusts and the nomination and remuneration committee, one board member, Noel Tata, did not support it, leading to uncertainties. Consequently, he decided to step down.

In his nearly 40 years with the group, Chandrasekaran demonstrated resilience and strategic foresight, earning the reputation of a marathoner in the corporate world. Even as he leaves with an unfinished agenda, his contributions have fundamentally reshaped one of India's most iconic business houses.