Tata Sons Hosts CEOs of New-age Businesses for Strategic Board Meeting Presentations

Tata Sons Board Meets Amid Concerns Over Losses at Group Businesses

The Tata Sons board held a day-long meeting in Mumbai on Tuesday, where the chief executives of several key group companies made presentations to the six-member board. The companies in question, including Air India, Tata Digital, and Tata Electronics, are considered some of the most ambitious bets for the group, but are currently reeling under significant losses.

According to sources, the meeting was attended by Tata Trusts' chairman Noel Tata, who had reportedly raised concerns over the mounting losses at some of the group businesses. The outcome of the meeting remains unclear, but the board is likely to reconvene on June 12 to discuss key issues, including the reappointment of current chairman N Chandrasekaran.

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In FY25, Tata group's unlisted businesses posted a loss of ₹10,905 crore, which is expected to increase to ₹29,000 crore. The Tata group, which includes the Tata Trusts owning two-thirds of Tata Sons, has seen significant top-level friction in recent times, including expulsions and attempts to expel members, as well as a deferment on a decision regarding Chandrasekaran's continuation as chairman of Tata Sons.

Noel Tata is reportedly concerned about the mounting losses at Tata Sons, particularly from new businesses started under Chandrasekaran, such as Tata Digital and the electronics ventures, as well as the financially struggling carrier Air India, which was acquired from the government a few years ago. Additionally, Noel Tata is said to be reluctant to take Tata Sons public through an initial public offering (IPO), despite the company being classified as a top-15 non-bank finance company (NBFC) by the Reserve Bank of India, which are mandated to list.

The meeting was also attended by Neville Tata, the son of Noel Tata, who has been inducted into a few of the trusts or foundations linked to the group. The next meeting of the Tata Sons board is scheduled for June 12, where key decisions, including the reappointment of Chandrasekaran, are likely to be discussed.