Tata Trusts panel to seek next Tata Sons chairman

Tata Trusts said Thursday that a selection committee will be set up to recommend the next chairman of Tata Sons, a day after N. Chandrasekaran said he would not seek reappointment when his term ends.

The Sir Dorabji Tata Trust, one of the group's charity institutions, passed a resolution to begin setting up the committee “as soon as possible”, Tata Trusts said in a statement. Tata Trusts thanked Chandrasekaran for his “contribution and stewardship of Tata Sons and the Tata group over the past decade”.

Chandrasekaran, chairman of holding firm Tata Sons, said Wednesday that he would not seek reappointment when his term ends in February. The previously supplied candidate said his term runs to February 20, 2027.

The $180 billion Tata Group has interests ranging from salt to software. Tata Trusts owns 66 percent of Tata Sons, giving the philanthropic institutions decisive influence over the group's future, though they do not manage the conglomerate day to day.

The panel would include three nominees from Tata Trusts, one from the Tata Sons board and an independent member, according to local media reports. The Times of India said Tata Steel chief executive T.V. Narendran was among the top candidates being considered to lead the conglomerate.

Chandrasekaran said he was stepping down because of a lack of support from one board member, without naming anyone. Local media have widely reported the board member to be Noel Tata, half-brother of the late Ratan Tata and head of Tata Trusts.

The group has faced boardroom disagreements over several issues, including losses at some companies. Several Tata Group stocks fell Wednesday after Chandrasekaran's announcement.

Some key businesses, including Tata Consultancy Services, have faced global headwinds. Other large investments, including the acquisition of Air India in 2022 and spending on semiconductor manufacturing, have yet to pay off.