On OCtober 24, after unseating Cyrus Mistry as Chairman, the board of Tata Sons Ltd issued a statement in which it said a new chairman would be named within four months (by February 24). It added that the chairman would be chosen by a selection committee comprising five members: Ratan Tat, interim chairman: Venu Srinivasan, Chairman of the TVS group, Amit Chandra, managing director of Bain Capital, Ronen Sen, exdiplomat, and Sushanta Kumar Bhattacharyya, founder of the Warwick Manufacturing Group.
Analyst said the holding company of the $103 billion Tata group already had a candidate in mind. That wasn’t the case, although several names, including some that had previously done the rounds before Mistry was named chairman in 2011.+
TCS CEO N Chandrasekaran is the new chairman of Tata sons. The announcement comes month after removal of Cyrus Mistry.
Ratan Tata was handling the top position since November and had formed a panel to decide on the new name.
Chandrasekaran was the top most choice of the panel. Chandrasekaran , who is fondly known as Chandra, took over a TCS CEO and MD in 2009.
Since then, he has proven to be the right choice as he tough several tough decisions for India’s biggest IT conglomerate.
Under Chandrasekaran’s leadership, TCS saw three-fold growth from Rs 30,000 crore ($6.34 billion) in 2010 to Rs 1.09 lakh crore ($16.5 billion) in FY16. profits also jumped more than three times from Rs 7,093 crore to Rs 24,375 crore.
TCS, which is Tata’s cash cow,now accounts for 60% of the Tata group’s combined market cap of $116 billion, besides contributing 70% to Tata sons’s revenue, which comes from dividends of its listed entities.
Meanwhile, Rajesh Gopinath will take over from Chandrasekaran to be the new TCS CEO.
“The selection committee unanimously chose Mr. Chandrasekaran. Ultimately, Chandra’s track record at TCS, his equation with Ratan Tata, and the almost unanimous feeling that he wouldn’t rock the boat like Mistry did, worked in favor.