How would you evaluate the Tata Group?

66% of its shares belong to charitable trusts, meaning: a holding structure controlling a $165-billion business empire enjoys tax-exempt status reserved for charities, yet its trustees are accountable to no shareholders—there is no general meeting where they can be removed, and they appoint and reappoint themselves while expanding their own powers.

India’s automotive giant is embroiled in internal strife; its chairman is on the verge of collapse.

In 2016, a fierce boardroom dispute led to Cyrus Mistry’s abrupt removal from the Tata Group—a move widely perceived as a 'coup' orchestrated by Ratan Tata. Chandrasekaran stepped into this turmoil as a crisis manager. Unaffiliated with any family faction and impartial toward competing interests, his neutral stance made him the ‘greatest common denominator’ acceptable to all sides. Under Chandrasekaran’s leadership, revenues of the Tata Group’s 15 largest listed companies surged from ₹6 trillion in March 2017 to ₹11.9 trillion in March 2025; profits doubled, and market capitalization more than tripled. Notably, Chandrasekaran is spearheading the largest transformation initiative in the Tata Group’s history. The group has already invested ₹5.5 trillion in ‘future-oriented’ new businesses, with committed investments exceeding ₹1.84 trillion. The rise of Tata Electronics stands as a hallmark of his strategic vision. By entering Apple’s supply chain, the company has achieved revenues exceeding ₹660 billion, significantly boosted exports to the U.S., and emerged as a benchmark for high-tech manufacturing within the Tata Group. He is also driving construction of India’s first indigenous semiconductor fabrication plant, scheduled to begin operations by end-2026—aligning closely with the Indian government’s industrial policy and positioning the Tata Group as central to India’s quest for semiconductor self-reliance. It is precisely for these reasons that, at the Board meeting on February 24, 2026, four out of six directors supported Chandrasekaran’s reappointment. Supporters firmly argued that losses incurred by individual subsidiaries should not overshadow the group’s overall performance, nor erase his years of contributions. One director even demanded a formal vote on Chandrasekaran’s reappointment—but Chandrasekaran himself insisted on postponing the decision. A Significant Third Party Within this power struggle at the Tata Group, the SP Group—and the family behind it—also play a pivotal role. As family members, both Cyrus Mistry’s sudden ouster in 2016 and Meher P. Mistry’s resignation from the Trustee Board of the Tata Trusts in 2025 reflect long-standing tensions between the family and the Tata Trusts as well as management. In stark contrast to Noel Tata’s position, the SP Group’s core demand is unequivocal: listing the Tata Group. The SP Group publicly declares listing a ‘moral and social imperative’—one that would unlock shareholder value and enhance governance through the transparency inherent in public companies. Behind this demand lies an urgent practical motive. Ajay Rotti, founder of regulatory consultancy Tax Compass, observes: ‘The SP Group faces immense debt repayment pressure and urgently needs to sell its Tata shares to raise cash.’ Yet for the SP Group, exit options remain extremely narrow. A share buyback by the Tata Trusts would require special approval from the Reserve Bank of India (RBI). Moreover, in its current unlisted status, Tata Group shares lack liquidity. Should the SP Group attempt private transfers, it would often have to accept steep discounts—severely eroding its asset value. By contrast, once the Tata Group goes public, its shares will gain strong liquidity, enabling the SP Group to gradually offload holdings on the open market and thereby realize billions of dollars in proceeds to resolve its financial distress.

Tata Group Stocks Fall After SP Group Unveils $2.6 Billion Stake Sale Plan

4 days ago

Tata Group stocks declined after Shapoorji Pallonji Group proposed selling a $2.6 billion stake in Tata Sons, causing Tata Chemicals shares to tumble 7.8% and other industrial units to drop.

reuters

2026-09-17

Tata Group Stocks Fall After SP Group Unveils $2.6 Billion Stake Sale Plan

2026-09-17

India's Tata Sons Gets Listing Backing From Second-Largest Shareholder

Tata Group Stocks Fall After SP Group Unveils $2.6 Billion Stake Sale Plan

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