The board meeting of Tata Sons ended on Tuesday, with worries about the conglomerate’s financial performance of multiple group businesses and its leadership becoming more pressing.
The gathering began at the company headquarters, Bombay House, in the morning and ended late in the afternoon, with Noel Tata and other directors present.
While leaving the headquarters in South Mumbai, N Chandrasekaran made no statement regarding the talks or any decisions made at the meeting.
Amid rising controversy within the Tata Group over losses in some of its newer ventures and ongoing discussions about leadership continuity, the conference was convened.
It was said that it was doubtful that Chandrasekaran’s reappointment as chairman would be brought up for discussion during Tuesday’s meeting.
According to rumors, Chandrasekaran and Noel Tata met during the weekend to talk about the financial strain on several unlisted firms, especially the performance of group companies.
Estimates indicate that the combined losses of Tata Group’s unlisted businesses in FY25 were around Rs 10,905 crore, and the figure may increase to around Rs 29,000 crore, according to reports.
Concerns within Tata Trusts, which controls around two-thirds of Tata Sons, are reported to have been raised by the losses.
According to rumors, Noel Tata has voiced worries about the financial success of Air India, electronics companies, and Tata Digital, among other newer enterprises that were established or expanded during Chandrasekaran’s term. The group acquired Air India from the government.
There have also been a number of governance-related changes in the Tata Group and Tata Trusts in recent weeks.
Earlier, the Maharashtra State Charity Commissioner had instructed Tata Trusts to postpone a crucial board meeting in response to allegations of irregularities in the composition of the Sir Ratan Tata Trust’s (SRTT) board of trustees.
The order, according to Tata Trusts, was ex parte and only relevant to SRTT; the Charity Commissioner’s directions were also being investigated.
Legal and governance-related discussions led to the postponement of the May 8 meetings of the SRTT and Sir Dorabji Tata Trust (SDTT) until May 16.
Among the topics anticipated to be addressed at those discussions regarding Tata Sons were Chandrasekaran’s extended term as chairman, the potential listing of the company, and the role of certain nominee directors.