Ratan Tata at the AGM of Indian Hotels Company in Mumbai on Thursday. (Reuters)

Mumbai, Aug. 5: The $72-billion Tata group is likely to name Ratan Tata’s successor by February or March next year.

On Wednesday, the group formally commenced the process of looking for the person who will step into Ratan Tata’s shoes when he retires in December 2012.

“Ratan Tata is retiring by the end of 2012. By February-March, we should come up with the name of his successor,” R.K. Krishna Kumar, Tata Sons director, told reporters after the annual general meeting of Indian Hotels Company here today.

Krishna Kumar, who is also the vice-chairman of Indian Hotels, is believed to be on the five-member committee to pick Ratan Tata’s successor.

Earlier, Tata told the shareholders of IHCL that the group was working rigorously on the plan to find a successor and that the process was likely to take around six to seven months.

Observers said that the group could be keen to wrap up the process in this time frame so that there was a smooth transition by the time Tata retires in December 2012.

Ratan Tata had in the past said that there would be a handholding period for the heir that could last from one year to 18 months.

The Tata group has already said it will be looking for someone with experience and exposure to direct its growth amidst the challenges of the global economy.

The selection process for a prospective candidate would consider suitable persons from within the Tata companies, other professionals in India as well as persons overseas with global experience.

“It is expected that the final selection would be made in adequate time to effect a smooth transition and change of leadership before Ratan Tata’s retirement at the end of December 2012,” the group had said.

Though the name of Noel Tata, 53, who was recently appointed the managing director of Tata International Ltd is in the forefront, Ratan Tata has indicated in the past that the successor could also be a person outside the group or a foreigner, since more than 65 per cent of the group’s revenues come from overseas operations.