MUMBAI: N Chandrasekaran, new Tata Sons chairman, has some points in his favour that will make for a smooth tenure, sans confrontations.
ET spoke to six senior directors at the group, along with top officials, who said that as a professional, Chandrasekaran's view is different from that of a promoter shareholder.
Also, his three-decade stint with the Tatas has given him an understanding of group ethics and he shares a personal chemistry with Tata Trusts chairman Ratan Tata.
"Chandra is not a Don Quixote, on a mission on his own. He will take the group along. He is temperamentally better suited for the role guided by Ratan Tata," said a Tata Sons director in an obvious comparison to Cyrus Mistry.
Senior group officials said his most important trait is that he is non-confrontational. "He recognises his duty and (the fact that) there is no need to show outright control. Chandra will not go into fiduciary and shareholder aspects," said a third director.
The gap between Chandrasekaran's influence and the powers Ratan Tata enjoyed as chairman of both Tata Sons and Tata Trusts is a given, said another director. Chandrasekaran's role is more like that of a chief executive's and he will have to get along with the board, though he is known to be his own man at Tata Consultancy Services (TCS).
An official who knows both Cyrus Mistry and Chandrasekaran spoke of the good equation between the new chairman and Ratan Tata.
"Mistry comes from an entrepreneurial background and therefore probably did not built the skill sets needed to survive in a corporate political environment. A professional who works his way up dealing with several bosses and colleagues tend to survive better."
He said the non-family professional would be more open to advise. Chandrasekaran, in his acceptance speech, said he sought Tata's guidance and mentoring.
"It is a promoter professional equation, unlike the troubled shareholder versus shareholder equation Tata and Mistry shared. Chandra will learn on the job," said one of the directors mentioned above. Industry watchers feel this will be pivotal.
However, a director noted Chandrasekaran's "challenge will come in when he deep dives and need to take a tough decision on a hemorrhaging business." Those who know him say Chandrasekaran understands Tata values, shareholder needs and the importance of global exposure.
"He has worked through the automation phase, understands future challenges and has worked with FC Kohli during transition," said a director, seeking anonymity. Officials and directors spoke of frequent interactions between Tata and Chandrasekaran, including advisory sessions and mentoring.
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