Latest news with #Chandrasekaran
Indian Express
2 days ago
- Business
- Indian Express
Rs 140 crore in perks: Tata Sons Chairman N Chandrasekaran's FY25 pay package totals over Rs 155 crore
Tata Sons Chairman N Chandrasekaran Salary: Tata Sons Chairman N Chandrasekaran is among the highest-paid industry leaders in India. In its annual report, the principal investment holding firm of the Tata Group of companies, said that the N Chandrasekaran's total remuneration in FY25 was at Rs 155.81 crore, up 15 per cent from Rs 135.32 crore in FY24. This huge pay package includes Rs 15.12 crore in salary and other compensation, along with Rs 140.69 crore as commission on profits for the financial year 2024-25. According to details available, Chandrasekaran joined the Board of Tata Sons in October 2016 and was appointed Chairman in 2017. Before becoming the Chairman, he served as the Chief Executive Officer and Managing Director of Tata Consultancy Services (TCS), the country's largest IT services firm. The IT giant is set to lay off about 2 per cent of its workforce (around 12,200 employees) in the financial year 2025-26. The move is likely to impact primarily employees at the middle and senior management levels. According to Reuters, the Tata Group company is retraining and redeploying staff as it enters new markets, invests in new technology and deploys AI, but over 12,000 jobs will be cut as part of the process. 'This transition is being planned with due care to ensure there is no impact on service delivery to our clients,' the company said, reports Reuters. Earlier this month, during earnings conference call, Milind Lakkad, Executive Vice President and Chief Human Resources Officer (CHRO) at TCS said that the workforce at the end of the first quarter was 6,13,069. 'Net attrition during the quarter was over 5,000 employees. We have honored all the job offers, and we'll do so for the rest of the year. Lateral hiring will be recalibrated based on the demand outlook,' he said, as per the exchange filing.
Time of India
2 days ago
- Business
- Time of India
Government tells Air India to 'end backseat driving' in key departments
NEW DELHI: Two key messages given by the Union aviation ministry to Tata Sons and Air India chairman N Chandrasekaran on Friday were to "end the culture of backseat driving" in key AI departments with a direct bearing on safety, and that people holding posts in these core departments should have the final authority to take decisions and not be there merely to be fall guys when things go south, thereby protecting the alleged backseat drivers. Union minister Ram Mohan Naidu, secretary Samir Kumar Sinha and DGCA chief Faiz Ahmed Kidwai had met Chandrasekaran on Friday to discuss steps to improve airline's safety. Chandrasekaran is learnt to have agreed to these suggestions. "Some departments, like safety, training, maintenance, engineering and 'integrated operation control centre' (IOCC), are key to ensuring overall operations take place safely. There were observations about some of these departments having a dichotomy in terms of someone being the post holder but someone else calling the shots. This needs to be resolved and we are hopeful the same will happen," said people in the know. After the June 12 AI 171 crash and subsequent minor incidents, the ministry has been holding high-level discussions with AI management headed by CEO Campbell Wilson. Three days of intense discussions culminated in the Chandrasekaran-Naidu-Sinha-Kidwai meeting on Friday. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Villas in Dubai | Search Ads Get Info Undo Following the minor incidents (AI 171 is being probed separately), AI post-holders were called to regulatory agencies concerned multiple times. With knowledge of AI's inside functioning, regulatory officials often "felt bad" for the "scapegoats" as those really calling the shots were not before them. "Unko kyan bolein hum (What can we say to them)," shrugged some officials who face this dilemma. On June 21, the DGCA had ordered the removal of three AI officials in charge of crew scheduling following "lapses in licensing, rest, and recency requirements", while warning it could go to the extent of shutting down AI if lapses in crew scheduling continued. One other thing that has been subtly pointed out to the management by officials following the June 12 crash is the airline's decision to keep items from planes that have crashed in the past (not AI 171) at its mega Gurgaon complex. Things like seats, instruments and flight data recorders have been kept on display. While it was perhaps meant to serve as a reminder of the need for safety, it is intensely disliked by a large number of employees. "We need positive energy and that place brings just negativity. We look at those seats and feel someone might have perished on them," said many employees. A senior govt official said: "With Tatas and Singapore Airlines as its stakeholders, this is the best chance AI has to become the airline of JRD's dreams. Along with IndiGo, India today is looking at the possibility of two big Indian airlines, with some promising newbies that can also make it big some day. Govt will help Indian airlines, and that is what it is doing with AI handholding at this difficult time. Also, safety is govt's responsibility also in a highly regulated sector like aviation. " All airlines have their own issues, and AI is not alone. "Our attention on AI as of now is like a teacher paying extra attention to a promising student who might not be doing well for some reason," govt officials said, adding, "It is time the well-run Singapore Airlines helps its JV come out of this huge crisis."
Time of India
3 days ago
- Business
- Time of India
After crash, red flags, government & Air India brainstorm on safety
After crash, red flags, government & Air India brainstorm on safety NEW DELHI: Brainstorming is on at the highest levels of the Tata Group and the aviation ministry to put Air India back on track after the spate of bad news, led by the June 12 AI 171 crash and regulatory actions in the past few months. Tata Sons chairman N Chandrasekaran met Union aviation minister Ram Mohan Naidu and aviation secretary Samir Kumar Sinha on Friday after three days of detailed discussions between the airline management (headed by CEO Campbell Wilson) and officials (headed by the secretary) led to concrete suggestions. "We have discussed all issues threadbare, including those related to maintenance, leadership and communications. Something positive will come out of this. India needs strong carriers and govt will support airlines wherever needed. The results will hopefully be visible in coming days once the suggestions are implemented," said people in the know. Chandrasekaran said to have told govt about safety steps taken by AI One such meeting went on till well after 10 pm earlier this week. Sources say Chandrasekaran informed govt about steps being taken by the airline after the AI 171 crash and some recent incidents to bolster safety. "Basically, govt was informed how AI plans to win back flyers' confidence," they said. It is learnt that the areas identified during the recent meetings for immediate attention include airworthiness, engineering and maintenance. A lack of spares, for instance, often forces aircraft to fly under the "minimum equipment list" (MEL) for a long time. MEL is a list that conditionally allows aircraft to be used with some equipment inoperative, with the condition that the same does not impact safety and that it would be replaced within a certain timeframe. The main issue, say multiple people involved in the exercise, is of culture. "Vistara was merged into AI last Nov. Ideally, it should have been the other way round. But that is done. Both airlines have a very different culture and AI is now facing post-merger issues. During the meetings, solutions were suggested. The main issue is not operations but about engineering and maintenance," they said. For some time, having the better-run Singapore Airlines (SIA) - which holds a 25.1% stake in AI, with the rest with the Tatas - play a more visible handholding may be considered. It's not about the image of AI alone, which has taken a beating, but also of the Maharaja's new promoters: Tatas and SIA. The focus has to be on ensuring 100% safety, not on growing rapidly. AI has cut flights after the Ahmedabad crash. "The culture has to change to safety first, not just for AI but for all airlines. 'Sacrifice growth, but ensure safety' has to be the firm message across the board," they said. The example being cited is of Boeing, which went on a rollercoaster ride in recent years, from being a "marvellous organisation once celebrated for engineering excellence" to an airline cutting corners for commercial reasons when it tried to counter competitor Airbus' best-seller A320NEO planes with a hurriedly made B737 MAX. After two MAX crashes in quick succession, Boeing is now trying hard to win back customer airlines' and flyers' faith by again making safe planes.
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Business Standard
4 days ago
- Business
- Business Standard
Tata Sons invested Rs 1 trn in 5 years, 'ready for future': Chandrasekaran
Tata Sons has in five years invested Rs 1 trillion in its companies and it is 'fit and ready for the future', Tata Sons Chairman N Chandrasekaran has said, listing semiconductors and digital services among core areas for growth. A multi-year strategy for financial and strategic discipline has put the group in a position of strength as it eyes growth in technology, manufacturing and consumer businesses, he said in the conglomerate's annual report for FY25. Tata Sons is the unlisted holding company of the salt-to-software group. The group's aggregate revenue has increased 1.9 times in five years; net profit jumped 3.6 times, and leverage ratio halved to 0.7x. Return on equity doubled to 17.5 per cent from 8.7 per cent in FY20. 'During this period, Tata Sons invested Rs 1 trillion in group companies, while the companies themselves undertook capital expenditure and investments of over Rs 4.5 trillion.' 'It is my deep conviction that we must be fit to perform. Some decisions that might have appeared ideal when they were taken may have aged poorly with time and changing economic conditions. As a result, our mantra in the last few years was 'fitness first, velocity next'. I am proud to share that the Tata Group is fit and ready for the future,' said Chandrasekaran. 'The transformation sets the stage for the group's next phase of growth across core areas such as semiconductors, batteries, renewables and digital services. 'At Tata Electronics, we are building a vertically integrated ecosystem for technology hardware and semiconductor manufacturing,' said Chandrasekaran, referring to the electronics manufacturing and semiconductors company. Tata Electronics employs over 65,000 people —70 per cent of whom are women — and posted annual revenue of Rs 66,000 crore in FY25. 'In the capital-intensive world of technology hardware, I am told this is a good start,' he said. Among Tata Sons' unlisted subsidiaries, Air India reported revenue of Rs 78,636 crore and net loss of Rs 10,859 crore in FY25. Tata Digital reported a revenue of Rs 32,188 crore and a net loss of Rs 4,600 crore. The company's insurance joint ventures ended the year with profits. Agratas, the group's battery company, is setting up 60 GWh of capacity in India and the UK. The company has research and development facilities in Bengaluru and Oxford – their work is crucial as electric vehicles (EV) worldwide accounted for around 864 GWh of battery capacity in 2024. Tata Power has quadrupled its renewables capacity in eight years and leads in solar rooftop installations. It has built 6,700 EV charging stations across India. 'Our mobile infrastructure business [Tata Communications] is now among only six global, end-to-end mobile wireless technology providers,' Chandrasekaran said, adding the company has developed an indigenous mobile network stack over the past three years. Consumer brands like Trent, Indian Hotels, Tata Consumer Products, and Tata Digital are seeing 'rapid growth'. NeuPass, the group's loyalty platform, has 140 million members. Tata Capital, a financial services company that is preparing for an initial public offering, is adding a new branch every day. Chandrasekaran outlined the group's ambitions in generative artificial intelligence (GenAI). 'Together with TCS, startups and other ecosystem players, we will do whatever it takes to make India ready for the GenAI era,' he said, referring to IT services company Tata Consultancy Services. Work for this purpose includes building data centres, upskilling talent, and delivering AI-powered solutions. The group has begun work to develop and manufacture 28nm node semiconductors. 'We will need to build from this foundation and move steadily towards where the cutting edge of chip manufacturing is today,' he said, noting that this will require 'several years of serious work.' While pursuing growth, the group remains focused on sustainable returns. 'Capacity creation must come with steady and guaranteed offtake,' said Chandrasekaran, referring to group consumer businesses. 'The challenge and opportunity of AI looms,' he said, recalling how TCS and the Indian IT industry drove expansion in engineering education, which fuelled India's rise as a global technology exporter. 'That training infrastructure was the foundation of our pivots as the prevailing themes in technology changed.' Chandra said beyond the numbers lies a story of fundamental change in the way the Tata group works. 'With the One Tata philosophy, we have brought the best of group synergies into reality. I am proud to say that multiple Tata group companies have worked together on several marquee projects such as the launch of our first electric vehicle, the construction of the new Indian parliament building or the creation and rollout of an entirely indigenous mobile telecom stack (4G/5G),' he said. 'Looking at the group today, we see multiple clusters of deep expertise. These clusters, presented on following pages, reveal that behind the diverse spread of businesses that populate the Tata Group, lies a deliberate choice of the industries we have chosen to focus and win.'
Time of India
4 days ago
- Business
- Time of India
Tata Sons profit falls due to lower other income, chairman Chandra earns Rs 156 crore, among highest-paid chiefs
Tata Sons profit falls due to lower other income, chairman Chandra earns Rs 156 crore, among highest-paid chiefs MUMBAI: Tata Sons' profit and revenue were affected in FY25 due to a sharp drop in non-operating income. Profit fell 24% to Rs 26,232 crore, and revenue declined 12% to Rs 38,835 crore. The revenue from core operations, coming from dividends, interest, and brand royalty fees, grew 62% to Rs 38,710 crore. Other income, which mainly consists of gains from TCS share buybacks, plummeted 99% to Rs 125 crore in FY25 from a significant Rs 20,036 crore in FY24. When adding up both revenue from core operations and other income, Tata Sons' total revenue was Rs 38,835 crore in FY25. In its annual report, Tata Sons explained that FY24's total revenue included a profit of Rs 9,376 crore from selling investments. Expenses fell nearly 30% to Rs 1,946 crore. At the same time, cash and bank balances rose 61%, reaching Rs 1,866 crore compared to Rs 1,154 crore in FY24. The company also said in its report that it paid off all its borrowings during FY25, a move that will help Tata Sons remain private. There are now no preference shares on its books, unlike in FY24 when there were preference shares worth Rs 262 crore. In FY24, Tata Sons applied to the Reserve Bank of India (RBI) for voluntary surrender of its registration as a core investment company (CIC) and to continue as an 'unregistered CIC'. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Why Seniors Are Snapping Up This TV Box, We Explain! Techno Mag Learn More Undo The application was submitted after the RBI introduced rules requiring CICs like Tata Sons to list themselves on stock exchanges. In its FY25 report, Tata Sons mentioned that the banking regulator is still reviewing its request. Dividend and chairman remuneration Although profits fell, Tata Sons increased dividends for shareholders and raised the compensation for its chairman, N Chandrasekaran. The dividend per share is Rs 64,900, almost twice the Rs 35,000 given in FY24. Tata Trusts, owning about 66% of Tata Sons, will receive about Rs 1,615 crore, while the Shapoorji Pallonji Group, holding about 18%, will get Rs 482 crore. Chandrasekaran's compensation rose 15%, reaching Rs 156 crore in FY25, making him one of the highest-paid professional chieftains in India Inc, earning over Rs 150 crore annually. His remuneration in FY24 was Rs 135 crore. Since taking on the role of Tata Sons chairman in February 2017, Chandrasekaran's pay has significantly grown, especially compared to his initial compensation of Rs 55 crore in FY18. In FY25, Chandrasekaran also earned around Rs 20 lakh in sitting fees from seven Tata-listed entities he chairs. He also owns stocks in these entities worth Rs 179 crore. CMS Info Systems' vice-chairman Rajiv Kaul earned Rs 181 crore in FY24, Persistent Systems' CEO Sandeep Kalra took home Rs 148 crore in FY25. Several executives are part of the Rs 100-crore remuneration club, including Bajaj Finance's Rajeev Jain, who made Rs 102 crore in FY25. Invests over Rs 21,500 crore in operating cos Tata Sons, which had 323 subsidiaries as of March 31, 2025, invested Rs 21,591 crore in both new and existing businesses to help them grow and deleverage their balance sheets. Most of this amount, about 95%, went into unlisted companies. Only Rs 1,082 crore was invested in listed companies, mainly Tata Consumer Products. Among unlisted and new companies, Tata Digital received the largest funding, with Rs 3,960 crore. Air India was close behind, with Rs 3,225 crore. Tata Electronics got Rs 3,000 crore, while Panatone Finvest, which owns Tejas Networks, received Rs 1,500 crore. Agratas was also funded with Rs 1,149 crore. Older businesses also got funding. Tata AutoComp received Rs 2,122 crore. Tata Capital got Rs 1,432 crore before its IPO. Tata Projects received Rs 1,500 crore, and Tata International was given Rs 1,000 crore. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
