What role does Tata Sons play in the Tata Group? Here’s how the conglomerate is structured

Tata Trusts will set up a Selection Committee to recommend the next chairman of Tata Sons after N Chandrasekaran decided not to seek reappointment when his current term ends on February 20, 2027. The Sir Dorabji Tata Trust (SDTT) said its trustees had passed a resolution to initiate the process “as soon as possible”, in accordance with the Articles of Association of Tata Sons.

The decision follows Chandrasekaran’s communication to the Tata Sons board on Wednesday that he would not offer himself for another term. The SDTT said it respected his decision and placed on record its “deepest appreciation for his contribution and stewardship of Tata Sons and the Tata group over the past decade”.

The development puts the spotlight on Tata Sons, the principal investment holding company and promoter of Tata companies. It sits at the centre of the Tata Group’s ownership and governance structure, while individual Tata companies operate independently under the guidance and supervision of their own boards.

What does Tata Sons do?

Tata Sons serves as the holding company for Tata Group businesses, including Tata Motors Passenger Vehicles, which owns Jaguar Land Rover. It also acts as an incubator for newer businesses, including Air India, battery maker Agratas, Tata Electronics and Tata Digital, the operator of online grocery service Big Basket.

As the principal investment holding company and promoter, Tata Sons has a shareholding relationship with the group’s operating companies. However, each Tata company or enterprise operates independently under the guidance and supervision of its own Board of Directors.

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This means Tata Sons’ role is distinct from the day-to-day management of individual businesses. The operating companies have their own boards and are responsible for running their respective businesses.

Who owns Tata Sons?

About 66% of the equity share capital of Tata Sons is held by philanthropic trusts. These trusts support areas including education, health, livelihood generation, and art and culture.

Tata Group companies together hold about 13% of Tata Sons.

The Tata Trusts are headed by Noel Tata, who took over in October 2024 following the death of his half-brother, Ratan Tata, the enterprise’s patriarch and one of India’s most prominent business executives.

Tata Sons reported revenue of ₹423.67 billion for the 12 months ended March 2026, according to the information provided.

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How does Tata Sons govern the group?

Tata Sons’ relationship with its group operating companies is governed partly through its shareholding and through the Brand Equity & Business Promotion (BEBP) agreement.

Every company that uses the Tata brand is a signatory to the BEBP agreement. The agreement gives operating companies the right to use the Tata brand in return for a commitment to run their businesses ethically and with excellence.

As part of this arrangement, operating companies must adopt the Tata Code of Conduct (TCoC) and Tata Business Excellence Model (TBEM).

The Tata Code of Conduct sets out principles covering high moral and ethical standards, corporate governance, human rights and dignity, professionalism, honesty, fairness and integrity. It also covers commitments relating to community development, safety, stakeholder interests, fair business practices and compliance with applicable laws and regulations.

The TBEM framework focuses on business excellence and assesses areas including leadership, strategy, operational excellence, customers, employees and the use of data systems. The Tata Business Excellence Group facilitates these assessments and the sharing of best practices across group companies.

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What is Tata Sons’ governance philosophy?

Tata Sons says its governance philosophy is based on fair, transparent, accountable and ethical management, with the interests of shareholders, employees, customers, vendors, regulators and society taken into consideration.

Its stated philosophy also emphasises resilience, reflecting the need to build sustainable and resilient enterprises as businesses become increasingly complex, virtual and interdependent.