The resignation of N Chandrasekaran from the position of Tata Sons chairman has triggered speculation as to who will take over the important role. Among the names, doing the rounds is that of TV Narendran, the managing director and chief executive officer of Tata Steel. The 61-year-old is a veteran within the Tata ecosystem and has been credited with strengthening the steel giant
Who shall lead the Tata Sons? That has become the question everyone is asking after N Chandrasekaran announced on Wednesday (August 12) that he would not seek another term as chairman when his current tenure ends in February 2027.
The 63-year-old’s exit has triggered what will be one of India’s most closely watched succession exercises — as it would decide who would reign large at Bombay House, the headquarters of the Tatas.
Shortly after, the name of TV Narendran, the managing director and chief executive officer of Tata Steel, started doing the rounds as the possible successor to N Chandrasekaran. While Tata Sons hasn’t made any formal announcement on the same, it has sparked great interest in TV Narendran.
TV Narendran — a forever Tata man
Following Chandrasekaran’s announcement of his exit, eyes turned to TV Narendran as a likely contender for the top post.
Born in Tamil Nadu on June 2, 1965, Narendran graduated from the National Institute of Technology, Tiruchirappalli, which is also his hometown. He then went to pursue an MBA from the Indian Institute of Management, Calcutta (IIM).
In 1988, he joined Tata Steel, with his career spanning across many areas — in India and abroad — including marketing and sales, international trade, supply chain and planning, and operations and general management.
More from ExplainersIn an older interview with Hindu Businessline, Narendran was asked why he joined Tata Steel in the first place. “That’s a question I’ve asked myself. In those days, there were not so many choices. Consulting was not there. In fact, at that time, no international consulting companies had started, and nor were there any other companies. For some reason, I was always interested in something which had to do with engineering.”
Later, he climbed up the ladder within Tata Steel, becoming the managing director of Tata Steel India and South East Asia in 2013, and after four years, he took over as the global CEO.
Speculation is swirling that Tata Steel’s CEO and MD, TV Narendran, could be the next Tata Sons chairman following the exit of N Chandrasekaran. Image Courtesy: Tatasteel.com
Why TV Narendran could be the right choice for Tata Sons
But why is TV Narendran being considered a frontrunner for N Chandrasekaran’s post?
Firstly, TV Narendran is a lifelong Tata person. Since the very start of his career, he has been a Tata employee. Even N Chandrasekaran was an insider with a four-decade Tata career before becoming chairman in 2017. As News18 reports, Narendran will represent continuity with that approach.
There are also his credentials to consider. As global CEO of Tata Steel, Narendran has steered the company through some very difficult periods. When he took over in 2017, the company was struggling with high debt, volatile steel markets and challenges linked to its international operations.
In fact, just days into him taking charge, he was faced with huge challenges. Two weeks as chief, he received news of a gas holder, a prominent structure in a steel plant, exploding. While there was only one fatality, this explosion was covered widely in the global media.
Then came the Supreme Court’s order to shut down all mines after the Mines and Minerals (Development and Regulation) Act (MMDR Act) was implemented. This resulted in Tata Steel not being able to operate its own mines and having to import iron ore.
TV Narendran has also steered Tata Steel through difficult European operations, including restructuring efforts in the UK and the Netherlands.
However, under his leadership, Tata Steel has seen a turnaround. Today, it is India’s second most valuable steel company. Tata Steel reported a nearly 12 per cent rise in consolidated net profit for the June quarter, supported by strong revenue growth and improved operating performance. The company posted a consolidated net profit of Rs 2,318.4 crore for the quarter ended June, up 11.6 per cent from Rs 2,077.7 crore a year ago, reported CNBCTV18.
There’s also the Noel Tata factor to consider. TV Narendran is believed to be close to Noel Tata, reports Hindu Businessline, making his elevation even more possible.
Some have speculated that Noel Tata could be the next chairman of Tata Sons. But the current framework doesn’t allow this. File image/Reuters
The other names doing the rounds
While TV Narendran is being seen as the main contender to replace N Chandrasekaran, his name isn’t the only one doing the rounds.
A source told Business Standard that Saurabh Agrawal, CFO, Tata Sons; and Shailesh Chandra, managing director and CEO of Tata Motors, could also be in the running to replace N Chandrasekaran as the chairman of Tata Sons.
Some have even speculated if Noel Tata could become the next Tata Sons chairman, pointing to when Ratan Tata took over as interim head following the ouster of Cyrus Mistry. However, the amended rules of Tata Sons prevent the same person from being the chairman of Tata Trust and Tata Sons simultaneously.
Other names that are also being discussed are P Venkatesalu, CEO of Trent, and Harish Bhat, the brand custodian of Tata Sons, reports Hindu Businessline.
Tata Sons Chairman, N Chandrasekaran arrives at the Tata Group Headquarters, a day after he announced his resignation, in Mumbai. His exit triggers a complicated succession contest. Reuters
Complicated process to choose N Chandrasekaran’s successor
Finding a successor to N Chandrasekaran to helm Tata Sons won’t be an easy task. Under Article 118 of the Articles of Association of Tata Sons, a selection committee will have to be set up for the appointment of the chairman.
Of this five-member committee, three members are nominated jointly by Sir Dorabji Tata Trust and Sir Ratan Tata Trust, one by the Tata Sons board, and the fifth is an independent member chosen by the board. This means that the Tata Trusts, of which Noel Tata is the chairman, wield significant influence.
However, this succession contest doesn’t need to be rushed. That’s because Chandrasekaran will remain in office until February 2027, giving Tata Sons several months to find his successor and allow a smooth handover.
With inputs from agencies
