The Indian Express (Delhi Edition)
New Tata Sons chairman to focus on shareholder returns, fund allocation
NCHANDRASEKARAN,WHOTOOK over as chairman of Tata Sons, the holding company of the $103-billion Tata group, on Tuesday said he will focus on boosting shareholderreturnsandtighteningcapitalallocationrules.chandra,ashe is popularly known, is the first non-promoter, non-parsi and non-shareholder Chairman of the 150-year old group.
Speaking ahead of the Board meeting, Chandrasekaran said: “In my new role, I will focus on three strategic priorities: bring the group closer together to leverage its enormous collective strength; reinforce a leader’s mindset among the operating companies and drive worldclass operating performances across the group; bring greater rigour to our capital allocation policies and deliver superior returns to our shareholders.”
“I look forward to working with my colleagues, the management teams and the boards of the companies towards achieving these goals,” said Chandrasekaran who was the MD and CEO of TCS before his selection as the head of Tata Sons. Chandrasekaran also chaired his first board meeting as Chairman of Tata Sons, the principal investment holding company for more than 100 Tata operating companies.
Ratan N Tata, chairman emeritus of Tata Sons, said: “I welcome Chandra, who has successfully displayed his leadership in his career at Tata Consultancy Services. I am sure he will bring considerable value to his leadership role in the Tata group in the years ahead. I wish Chandra every success for the future.”
Chandrasekaran said: “It is an honour to lead the Tata group as we near our 150th anniversary. The Tata group occupies a unique place in the hearts and minds of millions of Indians and also has established an important presence around the world.” He was inducted on the Tata Sons board in October 2016 after the ouster of Cyrus Mistry.
His inaugural Board meeting as chairman of Tata Sons follows his appointment as chairman of group operating companies including Tata Power, Tata Motors, Tata Steel and Tata Consultancy Services, where he was CEO from 2009-2017. “We will work together to deliver business performance which are industry leading in all our businesses and lead, not follow,” he said.
“We will work together with all the business leaders in the group to drive a lot of discipline on capital allocation and shareholder returns,” he said.
Ratan Tata will continue to be the chairman of the Tata Trusts which hold 66 per cent stake in Tata Sons. Mistry’s family owns 18.4 per cent in the holding company and is the biggest shareholders after the Tata Trusts. “I look forward to working with all the group entities, bringing group together to make an impact both in terms of business and also in terms of society at large,” Chandrasekaran said.
On October 24, 2016, Cyrus Mistry was asked to step down as the Chairman of Tata Sons, but he refused. He had to go as six out of eight directors voted for his removal, triggering an acrimonious battle in the $103 billion group. Both sides were involved in intense boardroom and battle subsequently, but the Tatas managed to remove Mistry from the boards of several companies. Mistry later resigned from the remaining boards approached the National Company Law Tribunal against his sacking.