- Tata Sons board likely to consider extending Chairman Chandrasekaran's term to 2032
- Tata Trusts, the main shareholder, supports the early tenure extension proposal
- Leadership continuity seen as vital for upcoming capital expenditure cycle
All eyes will be on the Tata Sons board meeting today as they consider a proposal that would extend the tenure of Chairman N. Chandrasekaran for a third five-year term starting in 2027.
The move to secure the chairman's leadership a year before the end of his current term, which is Feb. 2027, has received key backing from Tata Trusts, the group's principal shareholder. Representatives from Tata Trusts on the board include Noel Tata and Venu Srinivasan, who sit alongside Executive Director and Group Chief Financial Officer Saurabh Agrawal and independent directors Harish Manwani and Anita George.
Within the Tata Group, leadership continuity is seen as critical as the company braces itself for a period that will be dominated by a massive capital expenditure cycle across various business verticals.
The conglomerate is currently navigating several high-stakes, future-facing projects, including an aggressive push into semiconductor manufacturing, battery cell gigafactories, electric vehicle expansion at Tata Motors and a renewable energy scale-up at Tata Power.
Since taking charge in 2027, the former Tata Consultancy Services intern-turned-CEO has driven a 'One Tata' strategy to foster group synergy.
Under his leadership, the group's market capitalisation has surged past the $365 billion mark. His tenure has been marked by major acquisitions as well, including the privatisation of Air India and the consolidation of the group's aviation assets, the buyout of Bhushal Steel to fortify the domestic steel business and the acquisition of BigBasket to establish a foothold in quick commerce. N Chandrasekaran also oversaw the launch of the consumer services super app, Tata Neu.
However, there are immediate headwinds that the board must navigate. Some of the challenges include scaling up emerging digital and clean energy investments and addressing a recent $73 billion correction in overall group market capitalisation. Moreover, the group's crown jewel, TCS, is managing slowed revenue growht amid macroeconomic pressures and artificial intelligence-led disruptions.
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