Tata Group May Rework $120 Billion Investment Plans After Chandrasekaran Exit

N Chandrasekaran’s planned departure from Tata Sons is putting the conglomerate’s proposed $120 billion investment programme under fresh scrutiny, with key projects in semiconductors, aviation, batteries and consumer technology facing a more cautious approach to further spending.

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The leadership transition leaves Noel Tata, chairman of Tata Trusts, in a central position as the group prepares to choose Chandrasekaran’s successor. Tata Trusts collectively control about two-thirds of Tata Sons.

Capital Spending Comes Under Review

Bloomberg reported that Tata Sons’ board had already begun reassessing some of the group’s capital-intensive projects before Chandrasekaran announced his exit. The review has focused on investments where management may need to demonstrate clearer progress and potential returns before seeking additional funding.

The proposed investment programme covers the next five years and includes several businesses that require substantial capital over long periods. Noel Tata has favoured a measured approach, with greater emphasis on capital discipline and projects that can generate returns within a clearer timeframe.

The shift could affect the pace of spending across businesses including Tata Electronics, Air India, Agratas and Tata Digital.

Semiconductor And Battery Projects In Focus

Tata’s semiconductor plans remain one of the group’s biggest strategic investments. Tata Electronics is developing a chip fabrication facility in Dholera, Gujarat, while its semiconductor packaging facility in Assam is expected to begin operations next year.

The Dholera project has also attracted attention from the Indian government as part of efforts to expand domestic semiconductor manufacturing. However, delays involving technology access and operations have led the group to take a measured approach to the technology being deployed initially.

The battery business, Agratas, is also reassessing its expansion plans. The firm has experienced a disadvantage of cost compared to Chinese firms and problems in securing technology alliances. The business is now focusing on establishing the technology before making larger investments in production capacity.

Air India And Tata Digital Face Pressure

Air India remains another major capital commitment for the group. However, the airline has been through tough times after losses experienced during the year ended March 31, owing to the effect of the June 2025 plane crash and political instability.

Changes are also occurring at Tata Digital due to questions raised by the board regarding a request for roughly $1 billion more money. The business is restructuring its operations, including changes to management and staffing, while working towards improving its financial performance.

Tata Consultancy Services, the group’s largest cash-generating business, is also operating in a changing environment as enterprise technology spending slows and artificial intelligence reshapes the IT industry.

Focus Turns To Succession

Chandrasekaran joined Tata Sons after spending three decades at TCS, including eight years as its chief executive. His tenure at the group was marked by large investments across aviation, electronics, semiconductors and digital businesses.

The next chairman will therefore inherit a portfolio containing several projects that are still in their investment phase. The leadership change is expected to put greater focus on capital allocation, project execution and the pace at which new investments are approved.

With the search for Chandrasekaran’s successor now taking centre stage, the direction taken by the new leadership will determine how the Tata Group balances its long-term expansion plans with the need for stronger financial discipline.