- Tata Trusts began the selection process for a new chairman after Chandrasekaran's resignation
- Chandrasekaran's term ends in February 2027, and he urged a smooth leadership transition
- His third-term extension was blocked by one Tata Sons board member in February 2026
A day after N Chandrasekaran stepped down as chairman of Tata Trusts and said he would not seek another term, Tata Trusts began the process of finding his successor.
In a statement issued on Thursday, Tata Trusts said: "The Trustees of the Sir Dorabji Tata Trust have passed a resolution to initiate the setting up of a Selection Committee as soon as possible in accordance with the Articles of Association of Tata Sons, for the purpose of recommending a person for appointment as the new Chairman of the Board of Directors."
Notably, Chandrasekaran's current term ends in February 2027. In his resignation statement, he urged the board to start the succession process quickly to allow enough time for a smooth transition.
Tata Trusts owns about 66 per cent of Tata Sons, making it the holding company's largest shareholder.
Why Chandrasekaran Decided To Step Aside
Chandrasekaran's exit did not come as a surprise for the insiders. Questions about a possible third term had been hanging over the group since February.
According to his statement, the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust had unanimously recommended extending his tenure by another five years. The Tata Sons Nomination and Remuneration Committee and the board had also backed the proposal.
However, when the proposal came before the Tata Sons board on February 24, 2026, one board member did not support it. As a result, the resolution was not taken forward, and Chandrasekaran chose to defer the matter.
Six months later, there was still no decision. That uncertainty ultimately prompted him to step aside. In his statement, Chandrasekaran said: "Tata Sons is a very large institution and there are many strategic projects that are under critical stages of execution."
He also explained why the leadership issue could not remain unresolved. "It is not only necessary to have a leader in place to lead the Group beyond Feb 2027, but also clarity on leadership is important for employees, investors, partners and other stakeholders."
Soon after, he formally informed the board that he would not seek reappointment.
Who Will Replace Chandrasekaran?
This is now the key question. The selection committee will have the challenging task of identifying a leader capable of managing the scale and complexity of the Tata Group.
Chandrasekaran became chairman of Tata Sons in February 2017 after serving as CEO and managing director of Tata Consultancy Services.
During his tenure, Tata Group made several major bets. It returned to aviation through Air India. It expanded into electric vehicles, batteries and electronics manufacturing. It also entered the semiconductor business and invested heavily in digital technologies and artificial intelligence.
The semiconductor and electronics businesses, in particular, are long-term bets that could reshape Tata's industrial footprint. Air India remains another large transformation project that is still underway.
The Noel Tata Factor
The succession process is also likely to renew focus on the relationship between Tata Trusts and Tata Sons.
Noel Tata, chairman of Tata Trusts, is a key figure in the group's governance structure. Tata Trusts is the largest shareholder of Tata Sons. However, Noel Tata cannot automatically become chairman of Tata Sons.
The group's Articles of Association were amended after the bitter Ratan Tata-Cyrus Mistry dispute to separate the roles of Tata Trusts chairman and Tata Sons chairman.
As a result, the search for Chandrasekaran's successor will likely extend beyond the Tata family. Chandrasekaran was the first person from outside the Tata family to lead Tata Sons on a full-time basis. He took charge after Cyrus Mistry's turbulent exit and spent nearly a decade reshaping the group around growth, scale and new-age businesses.
