Nawal Tata to step down as Chairman of Voltas; Sunil D'Souza to become the new Chairman

According to documentation filed with the stock exchange, Noel Tata will leave his position as Vice President and Director of Titan Company on November 12. He will be departing after more than 23 years with the company.

In a statement accompanying the July-September quarterly results report, it was noted that Mr. Tata had been associated with the company since August 2003. During his tenure, he provided valuable guidance and strategic direction, and his deep understanding of consumer and retail business enriched the Board of Directors' discussions and contributed to the company's development and growth over many years.

Titan Company's consolidated net profit in the second quarter of the current fiscal year (Q2FY27) increased by 113.7 percent, reaching 2393 crore rupees. This growth was attributed to a one-time income of 671 crore rupees received from the change in fair value of the NCI option liability.

Operating revenue for this quarter grew by 10.1 percent compared to last year, amounting to 20614 crore rupees. The jewelry giant's Profit Before Interest, Depreciation, and Taxes (PBIDT) increased by 91.1 percent year-on-year, reaching 3799 crore rupees as of September 30.

The portfolio of Tanishq, Mia, and Zoya owner jewelry grew by 24 percent to 17495 crore rupees (excluding bullion and digital gold) thanks to the 'Diamond Festival' sales and brand-level promotion, which stimulated growth in gemstone pieces by early thirties percent and demonstrated sustained consumer demand.

In the watch segment, growth was driven by ongoing trends of premiumization and consumer preference for analog chronometers, allowing the company to achieve one of its strongest quarterly results, showing a 27 percent increase to 1881 crore rupees. The Eye Care division reported a significant growth of 28 percent, reaching 281 crore rupees, resulting from the implementation of a multi-brand approach strategy and an updated store network.

Total revenue from new business verticals for Q2FY27 increased by 21 percent to 171 crore rupees, although a loss of 6 crore rupees was recorded during this period.

Ajay Chawla, Managing Director of Titan Company, noted that Q2FY27 was a period of healthy, large-scale growth for Titan, as the company's business demonstrated consolidated operational growth of 25% year-on-year. He emphasized that despite a strong base in the previous quarter and a noticeable shift in the holiday calendar in Q3FY27, consumer demand remained high for most of the period.

He added that the jewelry business performed well due to design-focused collections and attractive offers for consumers, which resonated across various markets and age groups. The watch business demonstrated an excellent quarter, developing premiumization and design differentiation. The EyeCare business maintained its momentum through clear execution and continuously improving customer experience.

Chawla also stated that new business verticals are scaling successfully, and TEAL (Titan Engineering and Automation) continues to grow steadily and raise the bar in precision engineering. Across the entire portfolio, the company continues to innovate and invest in growth, strengthening the brand's shareholder value, deepening customer engagement, and creating long-term value for all stakeholders.

Significant changes are expected within the Tata Group in the near future. Noel Tata, Chairman of Tata Trusts, will turn 70 on November 12th. Speculation has arisen that upon reaching this age, he may step down from the boards of six major group companies, including Trent, Titan, and Tata Steel. Nevertheless, he will retain his position as a nominee director of Tata Trusts on the board of Tata Sons.

This process occurs against the backdrop of a dispute between Noel Tata and N. Chandrasekaran, Chairman of Tata Sons, regarding the extension of the latter's third term. Noel Tata's exit from the boards of six companies aligns with the group's policy for non-executive director departures. However, details regarding changes in other directorial positions remain undecided.

There are rumors that Noel Tata serves as a non-executive chairman on the boards of four companies, and also holds the position of vice-chairman in two others. These companies include:

• Trent: Non-Executive Chairman
• Voltas: Non-Executive Chairman
• Tata International: Non-Executive Chairman
• Tata Investment Corporation: Non-Executive Chairman
• Tata Steel: Non-Executive Vice-Chairman
• Titan Company: Non-Executive Vice-Chairman

Despite stepping down from these companies, Noel Tata will remain associated with Trent Hypermarket, a joint venture between Trent and the British company Tesco, which manages retail chains such as Star Bazaar and Star Daily. His role on the board of Tata Sons will be maintained.

Information about Noel Tata's potential departure surfaced amid disagreements between Tata Trusts and Tata Sons over the reappointment of N. Chandrasekaran. The Tata Sons board approved granting Chandrasekaran another five-year term on September 17th. The proposed new term is set to begin on February 21, 2027, and run until February 2032. According to reports, Noel Tata opposed this decision, while the second nominee director of Tata Trusts, Venugopal Srinivasan, supported it.

Following this, Tata Trusts questioned the legality of the proposal. The argument was that according to the Articles of Association of Tata Sons, a majority vote from directors appointed on behalf of the Trusts was required for support. Trusts raised the question of whether this condition had been met.

On October 26th, Noel Tata sent a letter to the secretary of Tata Sons, Supraksha Mohapatra, reiterating his objections. He requested the minutes of the September 17th meeting, voting records, and audiovisual recordings. He also raised questions regarding the reappointment process of Chandrasekaran. It was reported that Noel sought to ascertain whether the necessary selection committee had been formed according to company rules and if all requisite permissions had been obtained. This issue relates to corporate governance, specifically the process of company management and decision-making.

Tata Sons is the holding company of the Tata Group, and Tata Trusts collectively holds about 66% stake in it. As Chairman of Tata Trusts, Noel Tata is also a nominee director of the Trusts on the Tata Sons board. Consequently, his departure from the six companies and his retention of his role at Tata Sons are two separate events. His exit from the six companies will necessitate changes to assume the chairmanship roles at Trent, Voltas, Tata International, and Tata Investment Corporation. Furthermore, the succession for the vice-chairmanship positions at Tata Steel and Titan must be addressed. However, a complete succession plan for these roles has not yet been presented.

N. Chandrasekaran became Chairman of Tata Sons in 2017. After the approval of his new term, he can hold this position until February 2032. However, he will turn 65 on June 2, 2028. According to the group's internal policy, the standard retirement age for executive directors is typically 65. Exceptions may be required under existing rules to retain the position thereafter. This is an internal group system, and there is no legal prohibition on holding the office after age 65.

During Chandrasekaran's tenure leading the Tata Group, significant investments have been made in aviation, semiconductors, electronics, batteries, and digital business. The push for his term extension is linked to the need for leadership stability amidst the development and expansion of these sectors. Additionally, there are disagreements concerning the potential listing of Tata Sons. Tata Trusts opposes the inclusion of the company in the stock market. On the other hand, regulatory aspects are also important due to the Reserve Bank of India's (RBI) classification of Tata Sons as a non-banking financial institution of the highest level.