N Chandrasekaran's decision not to continue as Tata Sons chairman beyond his current term comes at a critical juncture for India's largest business conglomerate. Under Chandra's stewardship, the group made large investment bets in sectors such as aviation and semiconductors, some of which are yet to pay off. Tata Group has grown in revenue and market value during his tenure, but losses have also mounted among some business verticals. The diversified conglomerate is transforming itself rapidly and long-term capital commitments are needed to sustain the momentum. Holding company Tata Sons is in the process of resolving issues related to mandatory listing that its largest minority shareholder, Shapoorji Pallonji Group, favours as an exit strategy. Tata Trusts, which own majority of Tata Sons stock, prefer an unlisted holding company, which makes it easier for the group to conduct philanthropic activities and invest in unlisted businesses.Chandra's reappointment was not unanimous when the matter came up in February. Tata Trusts chairman Noel Tata and Chandra have divergent views on listing Tata Sons. The latter's expansion plans for the group require stronger backing from the Tata family than hesitation over his reappointment displayed. Chandra's decision caps a series of leadership changes in the group since Ratan Tata stepped down as Tata Sons chairman. Chandra, a career Tata executive, was brought in after Cyrus Mistry was ousted as boss of the holding company.Tata Group has made strides during Chandra's 10-yr tenure at Tata Sons. He has made significant structural changes to the group's businesses. Finding a replacement who shares his vision, and is capable of delivering the strategic reset, will be the next moonshot.
