The future of Natarajan Chandrasekaran as chairman of Tata Sons is under review ahead of a crucial board meeting scheduled for June. The decision on his reappointment has been postponed earlier this year amid concerns over strategy, governance, and the performance of several group companies.
The issue first surfaced during a February board meeting, when the proposal to extend Chandrasekaran’s five-year term was deferred. Key members of the Tata Trusts, including Noel Tata, raised questions about the group’s decision-making, capital allocation, and the effectiveness of Chandrasekaran’s leadership in delivering results. Under Tata Sons’ rules, any extension requires the support of the majority of the Trusts’ nominees on the board — currently Noel Tata and Venu Srinivasan. Without their approval, the reappointment cannot proceed.
One major factor prompting the review is the perceived need for a more updated business strategy. Some trustees consider Chandrasekaran’s 2025 plan outdated, particularly in light of widening losses in the group’s newer ventures. Companies such as Air India, Tata Digital, Tata Electronics, and Tejas Networks are reportedly expected to post combined losses of up to ₹29,000 crore this financial year.
In response, Chandrasekaran is expected to present a revised strategy focusing on profitability, clearer timelines for returns, and stronger execution plans for loss-making units. The Trusts are also seeking more transparency on how capital is deployed across high-risk ventures and the measures in place to ensure financial discipline.
This leadership review highlights the significant influence the Tata Trusts wield in the group’s governance. Recent tensions, including internal disputes and high-profile resignations, have added urgency to the evaluation.
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