Mumbai, Jan 12: The leadership crisis within Tata Sons is set to get over with the group finally appointing its Chairman. Natarajan Chandrasekaran, the Chief Executive Officer of Tata Consultancy Services (TCS), has been appointed as the Chairman of the $100 billion conglomerate. He would takeover the charge from Ratan Tata, appointed as the interim Chairman following the expulsion of Cyrus Mistry. Although Tata Sons is yet to issue an official statement, sources linked to NDTV have confirmed the news.
Natarajan Chandrasekaran, 53, becomes the first non-Parise Chairman of Tata Sons. He is credited for the credible gains made by TCS since 2009. In terms of latest statistics, TCS registered a growth of 10.9 per cent in the third quarter, as compared to profit made in the same period in the previous financial year.
Tata Sons faced a leadership crisis since October, when the incumbent Chairman Cyrus Mistry was fired from from his position. The decision was taken by Tata Trusts, who hold the majority of stakes in the conglomerate. Although the decision was challenged by Rustomji Pallonji Group, majority of the shareholders appeared on the side of Ratan Tata.
Mistry’s position was further weakened when he was removed as the director of nearly a dozen of Tata Sons affiliated groups, including TCS and Tata Steel.
Mistry was expelled as the Chairperson of Tata Sons on October 24. In an explosive letter written by Mistry following his ouster, he accused Ratan Tata of acting against him as he refrained to perform as a ‘lame duck’. He further claimed that Tata Trusts acted in an arbitrary manner to remove him from the post. “I was shocked beyond words at the happenings at the board meeting of October 24, 2016. Apart from the invalidity and illegality of the business that was conducted, I have to say that the Board of Directors has not covered itself with glory,” he stated in the letter.