Full text of Tata Sons Chairman's letter to the Board

Clouds of uncertainty return over Tata Sons after the Chairman surprised the market with his decision to hang up his boots at the end of his term next February, a decade after he became the first person of a non-Parsi origin to take the responsibility of the $320 billion conglomerate.

Chandrasekharan had taken the reins after the demise of the iconic Ratan Tata. Those were big shoes to fill. The Tata Group's revenue went from ₹6 lakh crore to ₹16.2 lakh crore, and the profit ballooned nearly five fold, during his tenure.

The decision came out of the blue, just days before the scheduled annual general meeting on August 18.

"Over the past few months we have seen the board meeting also postponed, where Chandra's reappointment was sort of pushed out. His supporters in that thing, Vijay Singh and Venu Srinivasan, also have taken a back seat," Shriram Subramanian, Founder and Managing Director at the Mumbai-based proxy advisory firm Ingovern, told CNBC-TV18.

Here's the full text of the letter that the Tata Sons Chairman sent to the Board of Directors on August 12:

I have completed 40 years of professional life at the Tata Group. I am grateful for the immensely satisfying opportunity to contribute to this venerable institution. Leading Tata Sons over the past decade has been a great honour and a profound responsibility.

My current tenure as the Chairman of Tata Sons comes to an end on Feb 20, 2027. Sir Dorabji Tata Trust and Sir Ratan Tata Trust had unanimously resolved and recommended the extension of my next term for a period of five years, which was recorded and recommended by the Tata Sons Nomination and Remuneration Committee and the Board. Subsequently, the resolution was tabled in the Tata Sons Board on Feb 24, 2026.

However, the proposal was not carried through because one of the Board Members did not support it, and in the absence of unanimous support, I chose to defer the decision.

It has been 6 months since that Board meeting, and no resolution has been reached till date. Tata Sons is a very large institution and there are many strategic projects that are under critical stages of execution. It is not only necessary to have a leader in place to lead the Group beyond Feb 2027, but also clarity on leadership is important for employees, investors, partners and other stakeholders.

Under these circumstances, earlier today, I have communicated to the Tata Sons Board, that I have decided not to offer myself for reappointment when my term ends on Feb 20, 2027. I have asked the Board to decide on the succession soon to ensure a proper transition.

I am grateful for the support of all stakeholders.

With warm regards,
Chandra

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