Natarajan Chandrasekaran has secured an unprecedented extension as Chairman of Tata Sons, marking a significant moment for the conglomerate as it doubles down on strategic investments in semiconductors, electric vehicles (EVs), and the revitalization of Air India. This move, a departure from the Tata Group's traditional retirement policies, underscores the critical importance of Chandrasekaran's leadership in navigating these ambitious ventures.
Chandrasekaran's reappointment reflects the Tata Trusts' confidence in his ability to steer the group through a complex landscape of both internal and external challenges. These include geopolitical tensions, market pressures, and the integration of Air India, alongside bold bets on strategic growth areas like semiconductors, defense, and aviation. Under his guidance, the Tata Group has seen substantial financial growth, with revenues nearly doubling and net profits more than tripling over the past five years. During this period, the group invested ₹5.5 lakh crore. By FY25, revenue from listed and unlisted entities reached ₹15.34 lakh crore, with net profits at ₹1.13 lakh crore. Furthermore, Tata Sons' net worth has increased significantly, rising from ₹43,252 crore in 2018 to ₹1.49 lakh crore.
Betting Big on Semiconductors
A key focus for Tata under Chandrasekaran's leadership is establishing a strong presence in the semiconductor industry. India currently imports over 90% of its semiconductors, and this demand is projected to reach $110 billion by 2030. The government is supporting domestic manufacturing with over $30 billion in incentives. Tata Electronics is investing significantly in this sector, with plans to build India's first semiconductor fabrication facility in Dholera, Gujarat, in collaboration with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC). This project represents an investment of approximately INR 91,000 crore (around US$11 billion) and aims to produce up to 50,000 wafers per month. The facility will cater to the growing demand in the automotive, computing, communications, and artificial intelligence sectors.
In addition to the Gujarat fab, Tata Electronics is establishing a semiconductor assembly and testing facility in Jagiroad, Assam, with an investment of INR 27,000 crore. This greenfield facility will focus on key platform technologies, including Wire Bond, Flip Chip, and Integrated Systems Packaging (ISP). Tata also intends to sign MOUs with 10 additional semiconductor companies to foster a comprehensive ecosystem in India.
Driving the Electric Vehicle Revolution
Tata Motors is committed to leading the electric vehicle (EV) market in India, targeting an 18-20% market share by 2030 with over 30% EV penetration in its portfolio. The company plans to launch 10 new EV models by FY26 and invest Rs 18,000 crore in its EV division over the next six years. Tata Motors has already introduced several EV models, including the Tiago EV and Curvv.
To support EV adoption, Tata Power aims to install over 7.5 lakh home chargers and 10,000+ charging points, reaching 4 crore customers in the next five years. Tata Motors has also collaborated with charge point operators (CPOs) and oil marketing companies (OMCs) to set up over 22,000 charging stations across the country. Tata Motors is also launching dedicated Tata EV showrooms to enhance customer experience and boost EV sales.
Revitalizing Air India
The Tata Group's acquisition of Air India in 2022 marked a homecoming for the airline and a strategic shift for the group. Chandrasekaran has been instrumental in implementing a five-year transformation plan, "Vihaan.AI," aimed at restructuring and transforming Air India into a world-class airline.
Key initiatives include merging Vistara and Air India to create a full-service powerhouse and merging Air India Express and AirAsia India to form a single low-cost entity. Air India is also expanding its international flight network and improving the airworthiness of its existing fleet. The airline placed an order for 470 aircraft from Airbus and Boeing at a cost of US$70 billion. Tata is overhauling Air India's technology, replacing outdated systems with cloud-based platforms and AI-powered customer support. Air India is also focusing on new routes, including potential non-stop services from Dallas/Fort Worth (DFW) and Los Angeles (LAX) as early as fall 2025.
Chandrasekaran's extended tenure signals a period of sustained focus on these key strategic areas. His leadership will be crucial in navigating the challenges and capitalizing on the opportunities that lie ahead, as the Tata Group aims to solidify its position as a global leader in semiconductors, electric vehicles, and aviation.
