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The next leader of Tata Sons could come from within the conglomerate's sprawling operating businesses, or even from the Tata family itself, as the group begins preparing for a leadership transition at the top.

With N Chandrasekaran set to step down as chairman of Tata Sons Pvt. when his current term ends in February, the 158-year-old conglomerate has begun considering potential successors, reported Bloomberg, citing people familiar with the matter. The discussions are private and remain at an early stage.

Among the names being considered are Tata Steel CEO and Managing Director Thachat Viswanath Narendran, Tata Power CEO Praveer Sinha, Tata Motors Passenger Vehicles CEO Shailesh Chandra and Tata Chemicals CEO Ramakrishnan Mukundan, the report said.

The succession exercise has also brought members of the founding Tata family into focus, including Neville Tata, the 32-year-old son of Noel Tata, and his sister Maya Tata.

Noel Tata's View To Carry Weight

The eventual choice is expected to be closely watched because of the influence of Noel Tata, chairman of Tata Trusts, the collective of 13 charitable trusts that control the holding company of the Tata Group.

According to the report, Noel believes Tata companies should be led by sector specialists rather than bankers. He is also understood to favour executives who have demonstrated competence and loyalty within the group.

That thinking could put long-serving Tata executives in a strong position as the search progresses.

Narendran, 61, has spent much of his career within the Tata Group. He joined Tata Steel in 1988 and rose through the Tata Administrative Services, the group's in-house leadership programme modelled on the national civil service.

As Tata Steel's CEO and managing director, Narendran has overseen the company's expansion and efforts to strengthen its balance sheet. He is also one of two group CEOs whom Noel regularly consults, according to the report.

Tata Power Chief Also In The Mix

The other executive said to have Noel's ear is Praveer Sinha, giving the Tata Power CEO visibility in the succession discussions.

Sinha's inclusion alongside Narendran highlights the possibility that the group could look to one of its operating-company leaders to take over the top role.

The early list also includes Shailesh Chandra of Tata Motors Passenger Vehicles and Ramakrishnan Mukundan of Tata Chemicals.

However, the discussions are not limited to professional executives.

Could A Tata Family Member Take The Top Job?

The recent induction of members of the founding family as Tata Trusts trustees has also brought the possibility of a family successor into focus.

Rather than taking the position himself, Noel could potentially support his son Neville or daughter Maya for the role, according to the report.

Neville Tata currently works with Trent Ltd., the group's fashion retail business. His work there has included helping build brands such as Zudio into major value-fashion businesses. He also serves on the board of the Tata Indian Institute of Skills.

His experience has brought a consumer-focused perspective to the Tata Trusts board, which has traditionally centred on areas such as grants and governance.

Maya Tata, meanwhile, has experience in digital commerce and online retail. She has worked with Tata Capital and Tata Digital, the Tata Group business behind its digital platform Tata Neu as well as its e-commerce operations involving BigBasket and 1mg.

External Candidate Has Not Been Ruled Out

Despite the names already circulating internally, the Tata Sons board has not closed the door on an outsider, the report noted.

An external candidate could potentially be considered to steer the conglomerate as it moves ahead with multi-billion-dollar investment programmes.

The choice will therefore involve more than simply finding a successor to Chandrasekaran. It will determine who takes charge of a group spanning businesses from steel and power to automobiles, chemicals, retail and digital commerce.

Representatives for Tata Sons and Tata Trusts did not immediately respond to requests for comment. Noel Tata, Neville Tata, Maya Tata, Narendran, Sinha, Chandra and Mukundan could not immediately be reached for comment.

The Sir Dorabji Tata Trust, one of the trusts that controls Tata Sons, said in a statement that it was seeking “a smooth, timely, and orderly transition of leadership, consistent with the values and long-term interests of Tata Sons and the Tata Group.”