New Tata boss faces huge challenge to restore glory

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ChandraNaming Natarajan Chandrasekaran, 53, as the Tata Group’s new boss, ended nearly three-month long search to replace ousted Chairman Cyrus Mistry.

But the elevation to the top post promises a huge challenge for the CEO of Tata Consultancy Services.

Chandrasekaran, better known as Chandra in the corporate world, will have to face multi-prone leadership challenges as the image of Tata brand has suffered a jolt by the recent controversy after the unceremonious exit of Mistry.

Chandra’s major challenges are as listed below after he formally assumes the office of Chairman of the diversified Indian conglomerate Tata on February 21.

1. Chandra will have to immediately restore the priceless glory of the Tata brand that has been hit by a range of controversies after the ouster of Mistry.

2. He will have to retain the confidence of the Group patriarch Ratan Tata who has started re-asserting on the Group’s affairs of late.

3. Chandra will have to frame strategies to raise contributions of group companies as the share in overall profits of the Group which is highly skewed in favour of TCS and Tata Motors. These two companies share nearly 95% towards the Group’s overall bottom lines.

4. Chandra, a ‘Tata lifer’ throughout his nearly three decades long career, will have to face a diversified challenge in running the Group that has a wide range of business interests, ranging from salt to car, as he only managed the affairs of TCS, the Group’s flagship IT company.

5. He will have to deal with a long drawn legal battle with ex-chairman Mistry on behalf of the Group. Mistry raised a host of issues related to violation of corporate governance.

6. Interesting to watch how Chandra devises strategies to ensure profitable returns from the Tata Group’s overseas acquisitions in steel and car companies, often termed as bad investments due to poor returns.

7. To lead the Tata Group as the first non-Parsi chairman will be a big challenge for Chandra, a traditional South Indian person.


Big Wire New Delhi Bureau


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