Tata Sons ready to take a call on chairman

After removing Cyrus Mistry as the chairman, company has not appointed a new head

The $103-billion Tata group is learnt to be close to finalising its new chairman, much before the four-month deadline for the selection process ends on February 24. 

After removing Cyrus Mistry as the chairman of Tata Sons on October 24 last year, the group had said a new head would be in place within four months. 

Sources said the five-member selection committee, comprising interim chairman Ratan Tata, TVS Group ChairmanVenu Srinivasan, Bain Capital’s Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya, has held several meetings and a decision was likely in a few days. 

While the Tatas told Business Standard that the group did not comment on speculation, sources said Tata Consultancy Services Chief Executive Officer (CEO) N Chandrasekaran was still a front runner in the race for chairmanship. Jaguar Land Rover (JLR) CEO Ralf Speth is also believed to be a contender for the top post at the holding company. Chandrasekaran and Speth were inducted as Tata Sons directors on October 25, a day after Mistry was removed. Besides Speth, British industrialist George Buckley is learnt to be another foreign national being considered by the selection committee to lead the salt-to-information technology conglomerate.  

Even as the search panel is looking at both Indian and foreign candidates, those from here might be preferred, said a source. 

Some even suggest the Tata name may help the group regain its stature, following the bitter corporate battle between the Tatas and Mistry. Trent Chairman Noel Tata’s name has also surfaced as a possible candidate. Noel, half brother of the current interim chairman, was seen as a contender for the top post before Mistry was appointed to lead the group four years ago. At several extraordinary general meetings (EGMs) held in December seeking removal of Mistry from Tata group companies, many shareholders are learnt to have recommended Noel’s name to lead the conglomerate. Hindustan Unilever non-executive Chairman Harish Manwani’s name is also in the fray.   

  

Although Mistry moved the National Company Law Tribunal in his fight against the Tatas, and one of the pleas is to stop the group from appointing a new chairman, he is yet to get relief. The next hearing is on January 31. An EGM has been scheduled on February 6, seeking removal of Mistry as a director from the Tata Sons board.