‘We can’t be reckless’: Tata Sons chairman signals caution on $120 billion growth bets amid boardroom tensions
Tata Sons Chairman N Chandrasekaran on Tuesday urged caution as the group pursues its $120 billion investment in future growth, saying it cannot be “reckless” and must protect its balance sheet and assess demand amid boardroom tensions.
Speaking at Bloomberg’s New Economy Forum in New Delhi, he said the group would continue to invest in projects such as semiconductor chips, which India and the world need. He acknowledged that such projects can be slow to deliver returns amid a tussle with Tata Trusts Chairman Noel Tata, who has pushed for quicker returns.
Chandrasekaran said the group must avoid undue risks and keep an eye on its balance sheet and demand. On whether an investment is financially viable, he said the numbers would not always be tidy, adding, “You need to feel the stones and cross the river. It is not that you are going to have a very clean spreadsheet in this uncertain world.”
Defending the group’s semiconductor investments, the Tata Sons chairman said its semiconductor push should not be judged on whether it meets the numbers in two to three years. He noted, "Direction is certain, need is certain, ability to execute is certain," and added that semiconductors would be fundamentally required, while advanced manufacturing was here to stay.
The defence comes at a time when Tata Electronics
which is developing India’s first large-scale semiconductor fabrication plant, has previously faced delays related to operations and access to technology. Chandrasekaran acknowledged the rough run the group has faced amid the Air India crash in June 2025, a cyberattack and supply-chain disruptions, but said it still recorded double-digit growth while maintaining its margins.
The comments come as Tata Trusts, the group’s majority shareholder, reviews its approach to capital allocation. The nearly 160-year-old Tata group reported revenue of $185 billion in the last fiscal year.
Noel Tata has reportedly differed with Chandrasekaran in recent board discussions over capital-allocation decisions and investments that can deliver returns more quickly. Tata Trusts owns about 66% of Tata Sons, the holding company of the group behind brands including Jaguar Land Rover, Air India, Taj Hotels and Tetley Tea.
His defence also comes amid an internal dispute that has now become public. In August, the Tata Sons chairman said he would not seek another term after his current tenure ends in February 2027, citing the lack of unanimous backing from the Tata Sons board. In February, concerns raised by Noel Tata prompted the board to postpone a decision on Chandrasekaran’s third term, and Tata Trusts began looking for a successor.
However, the Tata Sons board reappointed Chandrasekaran as chairman for five years last month. Noel Tata, one of the Trusts’ two board nominees, voted against the decision. Tata Trusts subsequently termed the reappointment illegal under the company’s articles, citing legal advice, a position disputed by Tata Sons.
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