Tata Trusts says panel will decide next chairman of firm

● The panel would include three nominees

AFP | Mumbai

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A group of charities that wields indirect control of India's Tata Group said yesterday a panel would be set up to recommend the next chairman of the conglomerate's holding firm.

The announcement came a day after N Chandrasekaran, chairman of holding firm Tata Sons, said he would not seek reappointment when his term ends in February.

The Sir Dorabji Tata Trust, one of the group's charity institutions, passed a resolution to initiate the setting up of a selection committee "as soon as possible", Tata Trusts said in a statement Thursday.

"We place on record our deepest appreciation for his contribution and stewardship of Tata Sons and the Tata group over the past decade," it added, referring to Chandrasekaran.

The $180 billion Tata Group, whose interests range from salt to software, has grappled with a leadership crisis for about a year due to boardroom disagreements over several issues, including losses at some group firms. While Chandrasekaran did not name anyone, local media have widely reported it to be Noel Tata, half-brother of the late family patriarch Ratan Tata and head of the Tata Trusts, a group of philanthropic institutions that owns 66 percent of Tata Sons.

While Tata Trusts does not play a role in the day-to-day management of the conglomerate, their shareholding in the parent firm gives them decisive influence over the group's future.

The panel would include three nominees from Tata Trusts, one from the Tata Sons board and an independent member, according to local media reports. Tata Steel chief executive TV Narendran was among the top candidates being considered to lead the conglomerate, the Times of India said.