Who next? Tata Steel MD Narendran’s name does the rounds after Chandrasekaran steps down
MUMBAI: For the past few decades, change of guard at Bombay House has often been accompanied by a large dose of drama.N Chandrasekaran’s sudden announcement has added to the uncertainty of the past few months, when battles within Tata Sons and Tata Trusts boards brought back memories of yesteryears.The question now uppermost in everyone’s mind is: who will replace Chandra? Tata Sons has a fair bit of time to plan the transition, since Chandra is expected to remain chairman till Feb 2027, .Under Tata Sons’ articles, the chairman is selected by a five-member committee. Three members are nominated jointly by Sir Dorabji Tata Trust and Sir Ratan Tata Trust (SRTT), one by Tata Sons board, and the fifth is an independent member chosen by the board. SRTT cannot currently participate because it is unable to convene trustee meetings following a directive from the Maharashtra charity commissioner – a complication for Chandrasekaran’s succession and a new wrinkle in Tata Sons’ planning.Noel Tata could have stepped in as interim chairman. He is due to retire from the boards of other Tata group companies in Nov under the group’s policy, which sets 70 as the retirement age for non-executive directors. He will continue as a Tata Sons director as he is a Trusts nominee, and Trust nominees are not subject to a retirement age.When Cyrus Mistry was removed as chairman in 2016, Ratan Tata stepped in as interim chairman at 78, four years after stepping down as chairman himself. The board subsequently appointed Chandrasekaran to bring stability. Noel may not be able to take the same route this time. Tata Sons’ amended articles bar the Tata Trusts chairman from also serving as Tata Sons chairman – a rule introduced in 2022. Ratan Tata was the last person to hold both positions.Among the names in circulation for the top job is TV Narendran, 61, managing director of Tata Steel. A Tata veteran who joined the group in 1988, Narendran has spent his entire career at Tata Steel and led the company since 2013.Noel Tata, Tata Sons director and Tata Trusts chairman, is vice-chairman of Tata Steel, and Narendran has described the late Ratan Tata as a mentor who guided the steelmaker through a difficult period of transformation.
