Business

8 Powerful reason why TCS CEO N Chandrasekaran is the top contender for Tata Sons Chairman

The search for a new chairman of Tata Sons following the ouster of Cyrus Mistry has thrown up quite a few names. The high-profile names include Indra Nooyi, the head of PepsiCo Inc, Arun Sarin, the former head of Vodafone Group, and Noel Tata, chairman of the Tata retail unit Trent and Jaguar Land Rover boss Ralf Speth.

Of these TCS CEO N Chandrasekaran is said to be the top contenders and below are some strong reasons for it.,

tata-consultancy-services-n-chandrasekaran

N Chandrasekaran heads the Tata Sons most Valuable Company

Chandrasekaran heads the group’s most valuable company.
And of all the chiefs of Tata companies, which is present in around 100 businesses, perhaps only JLR boss Ralph Speth can claim to rival Chandra’s performance.
Chandrasekaran has made TCS the biggest cash generator for Tata Sons contributing almost 90% to the Tata Sons coffers in 2014-15.

He is a Tata Group insider

Another thing that works in TCS CEO Chandrasekaran’s favour is that he happens to be a Tata Group insider and veteran.
TCS was his very first job. He joined the company in the year 1987 as a software programmer. He has never worked outside TCS.

TCS accounts for 60% of the Tata Group’s combined market cap

TCS now accounts for 60% of the Tata Group’s combined market cap of $116 billion, besides contributing 70% to Tata Sonsí revenue, which comes from dividends of its listed entities.

TCS has grown three-fold under his leadership

Under his leadership, TCS has jumped three fold from Rs 30,000 crore ($6.34 billion) in 2010 to Rs 1.09 lakh crore ($16.5 billion) in FY16. Profits also jumped more than three times from Rs 7,093 crore to Rs 24,375 crore.

Known for his able leadership

Chandrasekaran is said to have proved to be an able leader, often departing from established norms.
He broke down TCS business, once considered to be a monolith, into 23 business units to make service delivery, operations and execution work smoothly for the company. Later, he consolidated the units under eight groups, the heads of which report to him.
The strategy of creating small, focused business units was replicated by competitor Infosys this year.

Led the company’s biggest acquisition

Chandrasekaran has led the company to one of its largest acquisitions Citigroupís back office for $500 million in 2008. He also remains one of the youngest CEOs of the Tata Group.

TCS is India’s largest private-sector employer

The company today employs more than 350,000, making it the largest private sector employer in India. Among the listed companies, it is second largest after Coal India.

Known to take tough decisions

Spearheading TCS since he took over as CEO and MD in 2009, Chandra has shown he can take tough business decisions and challenge the status quo.

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