Mumbai | The Tata Trusts on Thursday initiated the process of finding N Chandrasekaran's successor to lead the diversified conglomerate's holding company, Tata Sons.

"The Sir Dorabji Tata Trust (SDTT) respects Chandrasekaran's decision not to offer himself for re-appointment. We place on record our deepest appreciation for his contribution and stewardship of Tata Sons and the Tata group over the past decade," a statement from the Trusts, which hold nearly two-thirds of Tata Sons, said.

Specifically, the Trusts thanked Chandrasekaran's contributions during the period of "significant change, growth and transformation" across the group.

In a sudden move, Chandrasekaran on Wednesday said he would not seek reappointment as the Tata Sons Chairman for a third term due to a lack of unanimity on the issue within the board.

The Tata Trusts statement issued on Thursday said Trustees of the Sir Dorabji Tata Trust have passed a resolution to initiate the setting up of a selection committee as soon as possible "in accordance with the Articles of Association of Tata Sons, for the purpose of recommending a person for appointment as the new Chairman of the Board of Directors." Noel Tata, who became the Tata Trusts Chairman following the death of his illustrious half-brother Ratan Tata, also heads the Sir Dorabji Tata Trust.

"We extend our full support to Tata Sons in ensuring a smooth, timely and orderly transition of leadership, consistent with the values and long-term interests of Tata Sons and the Tata group," Tata Trusts said.

In his statement on Wednesday, Chandrasekaran had underlined the need for clarity on the leadership issue at the earliest.