Tata chair to step down as succession row escalates

{"text":[[{"start":9.15,"text":"The chair of Tata Sons will step down in the latest chapter in a long-running succession battle at India’s largest conglomerate, after facing the prospect of an imminent confidence vote."}],[{"start":20.9,"text":"N Chandrasekaran said on Wednesday he had “decided not to offer myself for reappointment” when his term ends on February 20 next year."}],[{"start":30.4,"text":"“It is not only necessary to have a leader in place to lead the group beyond Feb 2027, but also clarity on leadership is important for employees, investors, partners and other stakeholders,” he said. "}],[{"start":42.95,"text":"Chandrasekaran’s decision marks the culmination of a near-12-month boardroom battle with Noel Tata, the chair of Tata Trusts, a group of charitable bodies that ultimately controls the Tata Group. "}],[{"start":54.800000000000004,"text":"Noel Tata was surprised by Chandrasekaran’s sudden announcement, said a person close to him, who added it would prevent the situation from becoming “messier”. Noel Tata did not immediately respond to a request for comment. "}],[{"start":68.30000000000001,"text":"According to multiple people aware of the boardroom tussle, Noel Tata wants his son Neville to play a more prominent role at the company."}],[{"start":76.15,"text":"Until last year, Chandrasekaran was widely expected to be given a third five-year term to lead the $300bn conglomerate. However, at a board meeting in February, Noel Tata expressed reservations about the Tata Trusts’ resolution last year that backed Chandrasekaran."}],[{"start":93.55000000000001,"text":"At Tata’s annual meeting next week, Chandrasekaran could have faced a possible confidence vote, according to people familiar with the matter."}],[{"start":101.70000000000002,"text":"Tata is one of India’s most crucial conglomerates, employing more than 1mn workers in industries spanning IT services, steel, airlines, defence, electronics and semiconductors, and is regarded as systemically vital to the country’s economy."}],[{"start":null,"text":"

"}],[{"start":116.50000000000001,"text":"The resignation injects fresh uncertainty among the leadership at Tata Sons, which lacks a deputy chair or a succession plan. "}],[{"start":123.95000000000002,"text":"Vijay Singh is a member of several Tata Trusts, including the largest, Sir Dorabji Tata Trust, which owns 28 per cent of Tata Sons. "}],[{"start":133.65,"text":"He told the FT it was “unfortunate” that Chandrasekaran “should have to go because of these circumstances”, referring to the boardroom tussle. “Hopefully going ahead relations between the trusts and the holding company will not reach the level to which they have reached now.”"}],[{"start":149.85,"text":"Singh said the corporate group would “certainly feel the difference” because it would be “hard to replace” someone with Chandrasekaran’s execution skills. "}],[{"start":158.54999999999998,"text":"Tata Sons is facing a potential forced listing by India’s central bank, which considers the business to be among the country’s largest shadow banks. The Reserve Bank of India is yet to take a final decision on the company’s request to avoid a listing. "}],[{"start":173.49999999999997,"text":"Shares in Tata Consultancy Services, India’s largest IT services company and a cash cow for the group, have fallen by a fifth in the past year owing to the threat posed by AI. The stock fell a further 5 per cent on Wednesday following the announcement."}],[{"start":188.99999999999997,"text":"Air India, the group’s airline, is also in crisis following the crash last year that killed 260 people. "}],[{"start":196.39999999999998,"text":"Suhel Seth, a former adviser to the Tata Group, said Chandrasekaran was appointed in 2017, at a time when the group “needed a lot of hand-holding”. He said “areas of concern” flagged earlier this year by Noel Tata, including spending on some large projects at Air India and Tata Digital, would occupy the attention of the next chair."}],[{"start":217.64999999999998,"text":"A resignation now would avoid public mudslinging, he said. “The heart of it is that there was no fight,” Seth added. "}],[{"start":225.2,"text":"Tata Sons shareholders, which include Tata Trusts and other Tata Group companies, are due to meet on Tuesday. One of the items on the agenda includes Chandrasekaran’s reappointment as a director."}],[{"start":236.85,"text":"Two company sources told the FT that Noel Tata could have pushed for a vote, which would have been embarrassing for Chandrasekaran after spending a decade leading the conglomerate. “He’d rather not face a vote, but step down,” one Tata executive said."}],[{"start":259.6,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1786530225_9988.mp3"}