N. Chandrasekaran, affectionately known as Chandra, has been reappointed as the Executive Chairman of Tata Sons for another five-year term, effective September 17. His leadership is seen as pivotal, especially given his initial appointment during a period of significant internal upheaval following the departure of Cyrus Mistry.
Looking ahead, Chandra has articulated a clear vision for the Tata Group, highlighting artificial intelligence, energy transition, evolving supply chains, and robust talent development as the four foundational pillars. During a recent address, he distilled his strategic approach into six key lessons, offering insights into institutional building, managing transformative change, and maintaining disciplined growth.
Embracing AI as a Game-Changer
Chandrasekaran firmly believes that artificial intelligence is a profound reality set to revolutionize productivity by an “order of magnitude.” He underscored AI’s far-reaching implications for employment, future skill requirements, and regulatory frameworks, noting that governments globally are already adapting their stances. For Tata Group, this means a mandatory, sweeping transformation across all businesses—B2B and B2C alike—centered on AI, energy transition, supply chain shifts, and talent evolution.
Fostering Talent and Renewal
While acknowledging the enduring strength of Tata Group’s long-serving employees, Chandra also recognized the organization's historical tendency to be “predominantly an inbred company.” He stressed the imperative to inject new talent and comprehensively train existing personnel in emerging technologies, particularly as AI reshapes the business landscape. Reskilling current employees and fostering collaboration across diverse group entities, with training as a core competence, are vital for sustained growth.
Bold Transformation at Scale
The Executive Chairman advocates for large-scale transformation, even when the immediate economic benefits are still crystallizing. He cited Tata Group’s significant pivot towards electric vehicles (EVs), electric commercial vehicles, and hydrogen buses, with the first hydrogen buses already produced. Despite the evolving economics of some of these technologies, the commitment remains firm. In the power sector, Tata has aggressively shifted to renewables, projecting that renewable capacity will surpass coal by 2025 and double it by 2027-28, reaching 65-70 percent of total capacity.
Direct Problem Solving and Feedback
Chandrasekaran emphasized the importance of confronting challenges head-on and leveraging feedback for operational improvement. Regarding Air India, he acknowledged the significant hurdles post-acquisition, stating, “we have to fix a lot of things.” He revealed receiving numerous daily complaints about issues like poor interiors and faulty seats, yet noted visible improvements in on-time performance and customer service. The ultimate goal for Air India, he asserted, is to deliver a product and service that instills national pride and stands unparalleled.
Strengthen, Simplify, Synergize
Chandra outlined a three-phase strategy for the diverse conglomerate. Initially, the focus was on “strengthening the core” by ensuring financial fitness and robust balance sheets across all companies. The second phase involves simplification—streamlining structures, business portfolios, market focus, subsidiary numbers, and management layers. The final phase concentrates on harnessing synergies across the vast array of Tata Group’s businesses, leveraging their collective strengths.
Discipline Meets Ambition
Acknowledging the immense opportunities in India and globally—spanning AI, energy transition, supply chains, materials, and the intersection of technology and biology—Chandra urged a continued spirit of boldness. However, he coupled this ambition with a call for discipline and patience, recognizing that building successful businesses takes time. He termed this approach “inspiration with rigour,” underscoring that lofty aspirations must be grounded in meticulous execution and unwavering patience. For initiatives like Air India, he highlighted the powerful tailwind of national support, stating, “everyone in this country is rooting for Air India.”