Tata Sons Board Meeting Concludes in Mumbai
Tata Sons Board Meeting Concludes Amid Friction Within the Group
A board meeting of Tata Sons, the holding company of the salt-to-software conglomerate, concluded on Tuesday at its headquarters, Bombay House, in South Mumbai. Directors of the board, including Tata Trusts' chairman Noel Tata, arrived at the headquarters in the morning and left in the late afternoon.
Chairman N Chandrasekaran was not available to speak to the media on the decisions made at the board meeting as he exited the group headquarters. A discussion on Chandrasekaran's reappointment was unlikely at the board meeting, which comes amid rising frictions within the Tata group. Notably, Chandrasekaran and Noel Tata, who is a nominee director on the Tata Sons board, met over the weekend to discuss the performance of the group companies.
The Tata group's unlisted businesses posted a significant loss in FY25, with a loss of Rs 10,905 crore. According to reports, this loss is likely to increase to Rs 29,000 crore. The Tata group, which includes Tata Trusts owning two-thirds of Tata Sons, has seen a lot of top-level friction lately, including expulsions or attempts to expel some members and a deferment on a decision regarding Chandrasekaran's continuation as the chairman of Tata Sons.
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Reports suggest that Noel Tata is concerned about the mounting losses at Tata Sons, particularly from new businesses started under the helm of Chandrasekaran, such as Tata Digital and the electronics ventures, as well as the financially struggling carrier Air India, which was bought from the government a few years ago. Noel Tata is also hesitant to take Tata Sons public through an IPO, citing the company's classification as a top-15 non-bank finance company (NBFC) by the RBI, which mandates listing.
| Company | Loss in FY25 | Projected Loss |
|---|---|---|
| Tata Sons | Rs 10,905 crore | Rs 29,000 crore |
| Air India | (Not specified) | (Not specified) |
In other developments, Neville Tata, the son of Noel Tata, has been inducted into a few of the trusts or foundations linked to the group.
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