Chandra’s second term may come up at Tata Sons AGM
Shareholders of Tata Sons Private Ltd, the holding company of the Tata group, may vote on September 14 on giving a second term to N Chandrasekaran as chairman. The online annual general meeting (AGM) comes at a time when the group is undergoing a transformation, carrying out a slew of acquisitions with a focus on digital businesses. A spokesperson for Tata Sons declined to comment.
According to Tata group insiders, during Chandrasekaran’s tenure, the group has dealt with the legacy issues, such as exiting wireless telephony, head-on.
The group has also acquired Bhushan Steel and several consumerfacing platforms like Big Basket and 1mg under him. Tata Sons’ subsidiary Panatone Finvest recently picked up a 43.3 per cent stake in telecom equipment manufacturer Tejas Networks and announced that it would buy another 26 per cent of the voting capital through an open offer.
Besides, the Tata group is set to launch its ‘super app’, which will bring all goods and services of the group under one umbrella.
“There is a need for continuity, considering that the group has not only done well on the bourses but has managed to solve several legacy issues,” said an insider.
Recently, the group also announced its plans to enter the semiconductor business following a global shortage of chips used in high-end cars and power stations.
In the current financial year, the Tata group is expected to bid for Air India, which is on the privatisation list of the government. Continuity at the top will help in the deal and integrating the airline, said insiders.
Interestingly, TCS continues to be the group’s cash cow for years and is helping the group to meet its financial goals. The group listed companies reported a net loss on a consolidated basis for the third consecutive year in FY21, excluding the earnings of TCS.
The generous dividend from TCS is helping the holding company to go on an acquisition spree.