Chandrasekaran’s first term laid foundation, second gives continuity for stakeholder value creation: Amit Chandra

N Chandrasekaran

N Chandrasekaran, who had taken over the reins of Tata Sons in 2017 after the ouster of Cyrus Mistry, was reappointed as the executive chairman for another five years on February 11. Bain Capital Chairman and Managing Director Amit Chandra, who was on the Board of Tata Sons when Chandrasekaran was made Chairman for the first time, believes the decision was prudent and would give the latter opportunity of continuity for stakeholder value creation.

Speaking to CNBC-TV18, Amit Chandra said: “This is a very logical decision for which I must compliment the board of Tata sons and importantly congratulate Chandra (Chandrasekaran) as well. Chandra has done a phenomenal job in his first term. But I think only the foundation work for a new Tata Group has begun and this extension actually provides the opportunity for continuity to complete a very important job for the sake of all stakeholders.”

He added: “His first term has really been focused on three things -- establishing one Tata, building leadership mindset amongst the operating companies, and then ensuring that all of that gets translated into best-in-class performance across the group.”

Amit Chandra recalled that during the first two years of N Chandrasekaran’s tenure when he was setting the plumbing, “people were very impatient”. By the second half of his first innings the results became evident: the Tata Group had vastly outperformed the index by nearly 80 percent.

What was important was that the performance was not a result of one or two companies doing well, but because two-third of the listed Tata Group had outperformed the index. “The proof is in the pudding,” the Bain MD said, adding: “Many of the key issues that existed when we appointed him have been set right. And he has really laid a great foundation for the future at a point of time when India is at a great inflection point for a wonderful 10 years ahead”.

Speaking on what should the Tata Sons Chairman’s priorities be going ahead, Amit Chandra said: “It is for the board and Chandra to work together and set the priorities, but I have heard him make all the right noises. Digital, I think it's very important in India's future and therefore, for the Tata Group to really embrace digital. He's talked about clean energy and mobility. And he's talked about health I think all these will be very important priorities for the Tata Group in the future.”

“Given my personal bias, as I was a nominee of the trust and the ethos of the group, obviously, is deeply embedded in social change. So as the group has now set right, the issues relating to cash flow, what I really hope for is that you know, both the group and Tata Trust will be able to contribute a lot more towards nation building. And that's a hope and prayer that I hope for, for  the next five or 10 years ahead,” he added.