Tata’s Chandrasekaran: Growth & Scrutiny Under His Watch

N. Chandrasekaran’s influential tenure as Tata Sons chairman is drawing to a close, with his extension uncertain ahead of the August 18 AGM. His leadership has delivered substantial growth for the Tata group, though not without facing considerable scrutiny over key investments.

Chandrasekaran, the first non-Parsi to lead Tata Sons, began his journey at TCS in 1987, becoming CEO in 2009. His initial appointment followed Cyrus Mistry’s removal and was notably backed by Ratan Tata, whose mentorship proved vital for acquisitions like Air India.

Chandrasekaran’s Growth Metrics

• Group revenue increased 2.4 times to Rs 16.2 lakh crore.
• Profit rose sixfold to Rs 1.7 lakh crore.
• Market capitalization more than tripled to Rs 27 lakh crore since FY17.

Despite robust overall growth, Chandrasekaran’s strategic decisions, particularly enduring short-term losses for long-term development, drew significant criticism. Major investments like Air India and Tata Digital experienced substantial cash bleeding. Additionally, TCS saw a nearly $100 billion loss in market value amidst the AI boom.

Shifting Influence and Future Outlook

The power dynamics within the Tata group shifted notably following Ratan Tata’s death in October 2024, strengthening Noel Tata’s influence. This intensified scrutiny on Chandrasekaran’s approach and raised concerns regarding Tata Sons’ RBI upper-layer NBFC status.

Strategic Diversification and Sector Wins

• Established businesses in electronics and India’s first semiconductor fabrication plant.
• Increased capacity at Tata Steel.
• Auto components business climbed to second place.
• Retail footprint expanded from 1,800 to over 7,500 stores.
• Tata AIA achieved second rank among life insurers.

As Chandrasekaran’s tenure concludes, the group’s future strategic direction will likely be shaped by these evolving internal dynamics and the ongoing need to balance ambitious growth with financial performance.