At a crucial meeting in Bombay House on Tuesday, Tata Sons Chairman N Chandrasekaran and other top officials made a detailed presentation to the members of the board on the performance of the group, growth trajectory, capital allocation plans for emerging businesses, and the roadmap for turning around loss-making companies, according to people aware of matters.
The presentation dwelt, in particular, on the new areas that the Tata Group has ventured into such as semiconductor manufacturing, iPhone assembly and precision electronics, and also the performance of Air India, Tata Digital, Agratas and Tejas Networks.
Loss making units
Air India posted a loss of $2.8 billion in FY26, while companies under Tata Digital such as Big Basket, 1mg and Croma have been struggling with cash flows and mounting losses.
Sources described the presentations as ‘intense’ and ‘detailed’ with Tata Trusts chairman Noel Tata, who is also on the board of Tata Sons, seeking information on several aspects. The discussions focused on the long-term strategy for these businesses, timelines for profitability and future investment commitments.
Emerging businesses
The group has committed to spending over $100 billion on its emerging businesses with a significant chunk allocated to Tata Electronics, an innovation hub in Navi Mumbai and EV batteries.
No active decisions were understood to have been taken at the meeting, which was convened for the sole purpose of taking stock and for the senior management to make the presentations. Apart from the board members of Tata Sons, the heads of the new businesses are also understood to have attended the meeting, sources said.
In February this year, Tata had raised the question of performance of some of the newer entities in the group and had sought a comprehensive roadmap for the group from Chandrasekaran, and greater clarity on path to profitability of the loss-making entities.
The meeting started mid-morning and was over in the late afternoon. A grim-looking Chandrasekaran and other board members did not speak to the media while leaving Bombay House.
The meeting comes at a sensitive juncture for the conglomerate, with broader discussions underway on governance, succession planning, and the future structure of Tata Sons, including the question of a potential listing.
Tensions are also rife between the members of Tata Trusts, setting the stage for a potential change in the composition of Tata Sons board.
Tata Sons board is scheduled to meet on June 12 to review its annual accounts where more clarity is expected to emerge on the roadmap of the group.