MUMBAI: Tata Sons Chairman N. Chandrasekaran’s decision not to seek reappointment has raised uncertainty over some of Tata Group’s biggest investments, including semiconductors, iPhone manufacturing and Air India.
Under Chandrasekaran, Tata has made major capital commitments aimed at expanding into new industries and supporting India’s ambition to become a developed economy by 2047.
The conglomerate acquired Air India in 2022 and expanded into iPhone manufacturing through acquisitions involving Wistron and Pegatron operations. It also announced an $11 billion semiconductor manufacturing project with Taiwan’s Powerchip Semiconductor Manufacturing Corporation.
However, several of these businesses remain in their early investment stages and are yet to generate profits.
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Tata Sons’ consolidated net profit fell 35 percent to 266 billion rupees, around $2.78 billion, in the financial year ending March 2026, as losses from Air India, Tata Digital and Tata Electronics weighed on earnings.
Boardroom tensions
Chandrasekaran said his proposed five-year extension had remained pending for six months and was ultimately not completed because one board member did not support it.
Analysts cited by the media said disagreements over capital allocation and investments in loss-making businesses had contributed to tensions between Tata Sons and Tata Trusts, which collectively owns about 66 percent of the holding company.
Sir Dorabji Tata Trust said it respected Chandrasekaran’s decision and would support an orderly leadership transition.
Attention will now turn to his successor and whether Tata maintains its aggressive investment strategy.
Tata Sons is scheduled to hold its annual shareholders’ meeting on August 18, with succession expected to be discussed ahead of Chandrasekaran’s term ending next February.
