Tata chair Chandrasekaran to step down after tension with controlling charity arm

Tata Sons chairman N Chandrasekaran announced on August 12 that he will not seek reappointment at the end of his term, citing a lack of support from the board. This decision comes amidst escalating tensions with the charity arm, Tata Trusts, which controls 66% of the group. The two factions have been locked in disagreements over various issues, including whether Tata Sons should be listed, the airline Air India's losses, the planned exit of a minority shareholder, and board representation.

Tata Trusts chairman Noel Tata opposed Chandrasekaran's reappointment in February, leading to the postponement of a decision. Despite no resolution being reached since then, Chandrasekaran stated he would remain in the position until February. The Tata Group, a 158-year-old conglomerate, faces challenges with Air India's mounting losses, a decline in sales for Jaguar Land Rover, and a data leak affecting its top clients, Apple and Tesla.

The group's diverse portfolio spans industries from electronics to automobiles to textiles, generating combined revenues of US$185 billion in the past financial year, with a market capitalisation of US$277 billion for its publicly listed entities.