Natarajan Chandrasekaran, the Executive Chairman of Tata Sons, has announced that he will step down on February 20, 2027, when his current term expires, declining to seek a third tenure at the helm of India’s largest conglomerate holding company. Chandrasekaran, who took charge in February 2017 after the dramatic removal of Cyrus Mistry, became the first non-Parsi professional to lead the Tata Group in its over 150-year history. His departure follows a six-month governance stalemate over his reappointment and marks a pivotal leadership transition for a group with over 100 operating companies and a combined market capitalisation exceeding ₹31 trillion.
Who Is Natarajan Chandrasekaran?
Born on June 2, 1963, in Mohanur, a small village near Namakkal in Tamil Nadu, Natarajan Chandrasekaran grew up in a farming family that owned 15 acres of agricultural land growing bananas, rice, and sugarcane. He completed his schooling in Tamil-medium government schools before earning a bachelor’s degree in Applied Sciences from the Coimbatore Institute of Technology and a Master of Computer Applications (MCA) from the National Institute of Technology, Tiruchirappalli (then known as Regional Engineering College, Tiruchy) in 1986.
Chandrasekaran joined Tata Consultancy Services (TCS) in 1987 as a young engineer and spent the next three decades rising through the ranks. He became Chief Operating Officer (COO) and Executive Director of TCS before being appointed its Chief Executive Officer (CEO) on October 6, 2009. Under his leadership, TCS generated consolidated revenues of US $16.5 billion in 2015-16, became India’s largest private sector employer with over 556,000 employees, and achieved a market capitalisation exceeding US $70 billion, making it the most valuable company in India at the time.
In January 2017, following the removal of Cyrus Mistry as Chairman of Tata Sons in October 2016 and a brief interim period led by Ratan Tata, Chandrasekaran was selected as the seventh Chairman of Tata Sons. He became the first non-Parsi professional executive to head the Tata Group in its over 150-year history, breaking a long-standing tradition of leadership drawn from within the Tata family and its close circle.
Chandrasekaran’s Tenure at Tata Sons
Chandrasekaran was formally reappointed for a second five-year term in February 2022, which is set to expire on February 20, 2027. Over his nearly decade-long tenure, he steered the Tata Group through several transformative initiatives and strategic expansions that reshaped the conglomerate’s portfolio.
The Air India Homecoming
One of the most significant milestones of his leadership was the acquisition of Air India from the Indian government, which the Tata Group completed in January 2022. The homecoming carried deep historical significance, as Tata Airlines, the precursor to Air India, was originally founded by J.R.D. Tata in 1932 and nationalised in 1953. Chandrasekaran subsequently consolidated the group’s aviation operations by merging Vistara (a joint venture with Singapore Airlines) into Air India, creating a stronger full-service carrier to compete in India’s booming aviation market.
Push into Semiconductors and Electronics
Under Chandrasekaran’s direction, the Tata Group made an aggressive entry into semiconductor manufacturing, a sector considered strategically critical for India’s technology independence. In 2024, the Indian government approved Tata Electronics’ proposal to build a semiconductor fabrication facility in Dholera, Gujarat, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC). The proposed facility carries an investment of up to ₹91,000 crore and planned capacity of up to 50,000 wafers per month, positioning India as a potential global player in chip manufacturing.
Electric Vehicles and Digital Expansion
The group also ramped up its push into electric vehicles (EVs) through Tata Motors, which emerged as a market leader in India’s EV passenger car segment. Tata Digital was established as the group’s digital business arm, driving investments in e-commerce and digital commerce platforms. The group expanded its footprint across batteries, electronics, and other manufacturing businesses during Chandrasekaran’s second term.
Global Recognition
Chandrasekaran’s stature extended beyond corporate boardrooms. He was conferred the Padma Bhushan, India’s third-highest civilian award, in 2022 for excellence in Trade and Industry. In 2023, French President Emmanuel Macron invested him in the Knight of the Legion of Honour, France’s highest order of merit. In 2026, he was honoured with an Honorary Knight Commander of the Order of the British Empire (KBE) by the United Kingdom for strengthening trade ties. He also led the B20 India presidency in 2023, shaping the global business agenda during India’s G20 presidency.
What Led to His Decision to Step Down?
Chandrasekaran’s decision was not a routine retirement but the result of a prolonged internal governance deadlock. On August 12, 2026, he issued a formal statement revealing the circumstances that led to his departure.
According to his statement, the two principal philanthropic trusts that hold a controlling stake in Tata Sons, the Sir Dorabji Tata Trust (SDTT) and the Sir Ratan Tata Trust (SRTT), had unanimously recommended a five-year extension of his tenure. This recommendation was subsequently recorded and backed by the Tata Sons Nomination and Remuneration Committee and the board. However, when the proposal was placed before the Tata Sons board on February 24, 2026, it failed to receive unanimous support after one board member did not back it.
Chandrasekaran stated that in the absence of unanimous support, he chose to defer the decision. Six months passed without any resolution. He concluded that Tata Sons, being a large institution with strategic projects at critical stages of execution, needed leadership clarity for the sake of employees, investors, partners, and other stakeholders.
Reports indicate that the primary source of friction was between Chandrasekaran and the leadership of the Tata Trusts, particularly Noel Tata, the half-brother of the late Ratan Tata, who assumed the chairmanship of Tata Trusts in October 2024 following Ratan Tata’s passing. The disagreements reportedly centred on board representation, the tenure of the chairman, governance matters, and concerns over losses in certain businesses, including Air India. Following Ratan Tata’s death, differences emerged among trustees over appointments and the governance framework.
How Tata Sons Will Choose Its Next Chairman?
The process of appointing a new Chairman of Tata Sons is governed by Article 104B of the company’s Articles of Association (AoA), a provision that was substantially updated following historical shareholder litigation to ensure the philanthropic trusts retain decisive authority over leadership selection.
The Five-Member Selection Committee
Under Article 104B, the Tata Sons Board must form a specialised five-member Selection Committee to identify the next chairman. The composition is explicitly laid down:
- Three members are nominated jointly by the Sir Dorabji Tata Trust (SDTT) and the Sir Ratan Tata Trust (SRTT)
- One member is nominated by and from amongst the Tata Sons Board
- One independent outside person is selected by Tata Sons
A Key Governance Rule
A critical structural rule governs this process. The chairman of Tata Trusts cannot serve as the chairman of Tata Sons. Following a landmark governance resolution adopted at the Tata Sons Annual General Meeting in August 2022, the group permanently separated the two positions to prevent the concentration of authority in a single individual, a setup that had existed under J.R.D. Tata and Ratan Tata. Therefore, Noel Tata, who leads Tata Trusts, is legally barred from being appointed Chairman of Tata Sons. He will act as the principal kingmaker, but the next chairman must be an independent executive or professional manager.
Chandrasekaran has asked the board to begin the succession process immediately to ensure a proper transition before his term ends in February 2027.
A Look Back: Chairmen of Tata Sons
The Tata Group, founded by Jamsetji Tata in 1868, has had only seven chairmen in its over 150-year history. Each leader shaped the conglomerate’s trajectory in defining ways.
| Chairman | Tenure | Key Contribution |
|---|---|---|
| Jamsetji Tata | 1868-1904 | Founded the Tata Group; established Tata Steel and the Taj Mahal Hotel |
| Sir Dorabji Tata | 1904-1932 | Consolidated steel and power businesses; established the Sir Dorabji Tata Trust |
| Nowroji Saklatvala | 1932-1938 | Managed the group through challenging economic times |
| J.R.D. Tata | 1938-1991 | Longest-serving chairman (53 years); founded Tata Airlines (later Air India), Tata Motors, and TCS |
| Ratan Tata | 1991-2012, 2016-2017 | Globalised the group through acquisitions like Corus and Jaguar Land Rover |
| Cyrus Mistry | 2012-2016 | First chairman from outside the Tata family; removed in October 2016 |
| Natarajan Chandrasekaran | 2017-2027 | First non-Parsi professional; led Air India acquisition and semiconductor push |
Chandrasekaran’s departure in February 2027 will close a distinctive chapter in Tata history. He was only the second person from outside the Tata family to hold the position, after Cyrus Mistry, and the first professional executive without any family connection to the Tatas.
Key Takeaways
- Natarajan Chandrasekaran will step down as Executive Chairman of Tata Sons on February 20, 2027, after completing his second five-year term.
- He became the first non-Parsi professional to head the Tata Group when he was appointed Chairman in February 2017, succeeding Cyrus Mistry.
- His key achievements include the acquisition of Air India in January 2022 and the launch of Tata Group’s semiconductor manufacturing push, including the ₹91,000 crore fab facility in Dholera, Gujarat.
- Chandrasekaran declined a third term after a proposed five-year extension failed to receive unanimous board support on February 24, 2026, despite backing from the Sir Dorabji Tata Trust and Sir Ratan Tata Trust.
- The successor will be chosen by a five-member Selection Committee under Article 104B of the Tata Sons Articles of Association, with three nominees from Tata Trusts and two from the board.
- Under the governance rules, Noel Tata, Chairman of Tata Trusts, cannot serve as Chairman of Tata Sons after a 2022 resolution separated the two positions.
- Chandrasekaran received the Padma Bhushan in 2022, the French Legion of Honour in 2023, and the UK Honorary KBE in 2026 for his contributions to trade and industry.
