Tata Sons has narrowed its search for a successor to Chairman N Chandrasekaran to three prominent corporate leaders, according to people familiar with the matter. Tata Steel CEO and MD TV Narendran is emerging as the strongest internal candidate, while Tata Sons Group CFO Saurabh Agrawal and NSE MD and CEO Ashish Chauhan are also in contention.
The succession assumes significance as Chandrasekaran, who took over as Tata Sons chairman in 2017, has decided not to seek another term after his current tenure ends on February 20, 2027.
The final choice will require the backing of the Tata Sons board and the Tata Trusts, which control the holding company. No formal shortlist has been announced yet.
Narendran is currently seen as the frontrunner, bringing more than three decades of experience within the Tata Group. He joined Tata Steel in 1988 and has led the company as CEO and MD for more than a decade.
His biggest advantage is his operating experience. Narendran has navigated Tata Steel through global commodity cycles, large capital investments and the difficult restructuring of its European operations.
He has also held prominent industry positions, including chairman of the World Steel Association and president of the Confederation of Indian Industry.
The challenge, however, is that his career has largely been concentrated in steel. Running Tata Sons would require him to oversee businesses ranging from IT and automobiles to aviation, financial services, consumer products and semiconductors.
Saurabh Agrawal represents a different proposition. As eecutive deirector and group CFO of Tata Sons, he has been closely involved in the conglomerate’s capital allocation, investments and portfolio strategy since joining in 2017.
His investment-banking background is a significant advantage. Before joining Tata Sons, Agrawal held senior positions at DSP Merrill Lynch, Standard Chartered and the Aditya Birla Group.
He also has experience across several Tata businesses through board positions and leadership roles.
That experience could become particularly valuable as the group faces major capital requirements in areas such as Air India, electronics and semiconductor manufacturing, electric mobility and digital businesses.
Ashish Chauhan brings an external perspective without being an outsider to India's corporate ecosystem. The NSE chief was among the executives involved in establishing the exchange in the 1990s and has also served as MD and CEO of BSE.
His career spans technology, financial markets, banking and corporate management. He has also been instrumental in steering NSE towards its proposed public listing.
Chauhan's supporters point to his experience in institution building, technology-led transformation and navigating complex regulatory environments.
The question is whether that experience can translate to managing a conglomerate as diverse as Tata. Unlike Narendran and Agrawal, he does not have a long operating history within the Tata Group.
The succession comes at a pivotal moment for Tata Sons. The group is undertaking large investments in aviation, electronics, semiconductors, electric vehicles and digital businesses, while TCS faces rapid technological disruption.
Air India will require sustained capital and strategic attention as Tata attempts to build a global-scale airline. Tata Digital, meanwhile, presents the challenge of turning a collection of consumer internet businesses into a more coherent and profitable platform.
The next chairman will also have to navigate the long-running question of a potential Tata Sons listing, alongside complex shareholder and governance issues.
The choice, therefore, will be more than a change of leadership. Narendran would represent continuity and operating expertise; Agrawal would bring a strong capital-allocation and financial-market perspective; Chauhan would offer technology, financial-market and institutional-building experience.
For now, Narendran appears to have the edge. But with the selection process still underway, Agrawal's financial expertise and Chauhan's broader corporate profile keep the race open.
