TCS Managing Director N Chandrasekaran appointed Chairman of Tata Sons

Here are the 3 virtues that make Chandra an obvious choice as a leader of the business empire. Chandrasekaran’s tenure has not been announced.

Moreover, he is a keen photographer, music lover and a passionate marathon runner who has completed marathons in diverse places such as Amsterdam, Boston, Chicago, Berlin, Mumbai, New York and Tokyo. As of January 5, the company makes around 60% of Tata Group’s total market capitalization of over $117 billion.

But it’s not going to be a cakewalk for Chandrasekaran. Prior to this, he was the chief operating officer (COO).

The Tata founders bequeathed most of their personal wealth to the various trusts they created for carrying philanthropic activities.

As several directors of Tata Sons on the board of Tata companies retired, he did not appoint any directors of Tata Sons on the boards of other Tata companies, as was the practice in the past.

A leading industry lobby group also cut the IT sector’s growth forecast for the fiscal year ending March 2017.

“In most of the cases, Mistry ensured that he was the only director who was common to Tata Sons and Tata Group companies”.

What the anointment of Chandraesekaran indicates is that the Tata group is now officially under Ratan Tata suzerainty. “Unlike Mistry, he’s an insider”.

But the feud is threatening its reputation and has helped wipe around US$9 billion off the collective stock market value of the group’s eight main companies. These include group businesses like Tata Steel Europe and Tata Motors’ passenger cars division, which have been struggling for some time now. This is a big plus. “Secondly, there are large companies and investments in the Tata portfolio that need urgent attention”.

Trust deficit was the main reason for Mistry’s exit. For 4 years, the directors of Tata Sons supported Mistry and exercised caution, restraint and patience, according to the affidavit.

The appointment of Chandrasekaran comes more than a month before the deadline of February 24 for the five-member to find a new chairman. I feel overwhelmed.” But he promised that he would “grow into this role’ and said that he sees one of his key responsibilities as having to “bind the group together”.

Mr Chandrasekaran started as TCS chief executive in 2009, having joined Tata in 1987. He was groomed by his predecessor at TCS, S Ramadorai, to take over as MD and CEO in the mid-2000s. Well, the move now to the corner room at Tata Sons will undoubtedly be the biggest change for Chandra, even bigger than staying away from family after class 10th. His father, Srinivasan Natarajan, was a lawyer by profession but also managed the family farm. He has a master’s degree in computer application. Before that he was the Executive Director of the company since 6 September 2007.