Tata Sons chairman Chandrasekaran quits; leadership tussle deepens

The Tata Group, India's largest conglomerate, is facing its most serious leadership crisis in decades after chairman Natarajan Chandrasekaran resigned from Tata Sons. The exit comes amid reports of a deepening power struggle at the top, with several close aides of the late Ratan Tata also withdrawing from key positions.

Chandrasekaran, a marathon runner known for his endurance and quiet resolve, had been at the helm since 2017. His tenure was marked by bold bets that took the group into new frontiers — from airlines to fast fashion — even as it strengthened its core technology and steel businesses.

A decade of transformation

Under Chandrasekaran, the salt-to-software conglomerate expanded its footprint dramatically. The acquisition of Air India in 2022 was seen as a homecoming for the group, which had originally founded the airline. He also greenlit aggressive retail plays, including the rapid scale-up of Zudio, the value fashion chain that became a household name in India.

Analysts say his tenure changed the trajectory of the group, pushing it beyond its traditional strengths. The decision to overhaul the group's digital and e-commerce operations, coupled with a bold push into semiconductor manufacturing, drew both praise and scrutiny.

The exit and its aftermath

The circumstances surrounding Chandrasekaran's resignation remain unclear. Tata Sons has not issued a detailed statement, and officials have not yet confirmed the exact reasons for the departure. What is known is that the group's internal dynamics have shifted sharply in recent months.

The withdrawal of Ratan Tata's trusted aides from leadership roles has added to the uncertainty. These are individuals who had been instrumental in steering the group through several transitions, including the dramatic ouster of Cyrus Mistry as chairman in 2016.

Behind the power struggle

The power struggle is not new to the Tata Group, which has seen its share of boardroom battles. But the current crisis is different. It comes at a time when the group is navigating global headwinds, rising input costs, and intense competition in sectors like retail and aviation.

Industry observers point out that the Tata Group's structure — with the holding company Tata Sons and its charitable trusts controlling a majority stake — makes it uniquely susceptible to internal friction. The trusts, set up by the Tata family, have historically played a decisive role in leadership choices.

The recent exits suggest that factional lines have hardened. Those close to Ratan Tata, who passed away in 2024, are reportedly unhappy with the direction the group has taken in recent years, particularly around financial engineering and aggressive diversification.

What happens next

The immediate priority for the Tata Sons board will be to name an interim chairman and begin the search for a permanent successor. The group's operating companies — from Tata Motors to Tata Consultancy Services — are likely to remain unaffected in the short term, but investor sentiment could be tested.

Whoever takes charge will inherit a sprawling empire with significant debt, ambitious expansion plans, and a workforce that looks to the group as a national institution. The next few weeks will be crucial in determining whether the group can restore stability and confidence, both internally and on the stock markets.