By Rajesh Kurup
Tata Sons, the investment-holding arm of Tata group companies, will convene a board meeting soon to approve the extension of its chairman N Chandrasekaran’s tenure.However, the holding company of the salt-to-software Tata group is unlikely to call for an extraordinary general meeting (EGM) for shareholders’ approval. Later, Tata Sons will seek shareholders’ approval following the ratification by the board, in the company’s next annual general meeting (AGM), sources close to the development said.
“A board meeting would be held in the next 10 days or so to approve the extension of the current chairman’s term by another five years. Chandrasekaran’s second term has already been informally approved by board members and Tata Sons’ shareholders, including Tata Trusts,” a source said.
A date for the board meeting is yet to be finalised, sources said, adding the approval to extend Chandra’s tenure is a “mere formality”.Chandra, as he is known in the industry, was designated chairman in January 2017 and later took charge on February 21, 2017, following the ouster of former chairman Cyrus P Mistry. His five-year tenure officially ends in February this year.
During his tenure with the salt-to-software business conglomerate, Chandrasekaran was instrumental in winning the bid for state-run carrier Air India, developing a super app (TataNeu), revamping Tata Motors’ domestic operations, electrification of the world’s cheapest car the Nano and divesting Tata Steel’s cash-guzzling European operations, among others.For FY2021, the privately-held Tata Sons’ consolidated net profit rose 77.68% to Rs 19,397.08 crore, while on a standalone basis, it more than doubled to Rs 6,511.63 crore.
During the period, the holding company posted operational revenues of Rs 9,460.24 crore, which comprises dividends from group firms.Including Chandrasekaran, the Tata Sons board has six directors. The others on the board are Venu Srinivasan (chairman of Sundaram-Clayton and TVS Motor Company), Ajay Piramal (chairman of Piramal Group and the Shriram Group), Ralf Speth (CEO of Jaguar Land Rover), Bhaskar Bhat (former MD of Titan) and Harish Manwani (former global COO for Unilever and non-executive chairman of Hindustan Unilever).