New Delhi: Tata Group chairman Ratan Tata has said that each of the group’s nearly 100 companies will have to find its own way to survive the global financial crisis.
The group’s 96 companies include outsourcing firm, Tata Consultancy Services, Tata Steel and Tata Motors.
“Those who will survive will survive, those which will not, will fail,” Tata Group chairman Ratan Tata told NDTV Profit.
“Each company has to find its way of sustaining itself,” he said adding that the 141-year-old group would rationalise its operations.
Tata called the global slump, the most difficult times.
“We need to have the spirit to face, to adapt into the hardship,” he said.
“Each group in the firm has been told to devise its own strategy to cope in a global crisis which has slowed India’s economy,” he said.
“Each one will have to critically examine what they have to do and I’ve mandated that each of our companies come back to us with the plan,” he said.
The Tata Group is a colossus in India with an annual revenue of $24 billion in the 2007-2008 financial year and is the biggest private employer with 289,500 people on its payroll.
But a number of its companies have been struggling recently as the financial turmoil saps global demand.
In 2007, Tata purchased Anglo-Dutch steelmaker Corus for $13.7 billion and the company now faces a sharp drop in demand for steel.
The following year Tata bought Britain’s prestigious Jaguar and Land Rover car marques for $2.3 billion but their sales have since plunged.
“The companies (Jaguar and Land Rover) were on the cusp of recovery, and were it not for this downturn, we would have acquitted ourselves really well,” Tata said.
He said that he still had confidence in the two luxury brands.
“There is a great deal of technology in these two companies and the brands I think can be nurtured to their original glory,” he said.
He promised the company’s delayed Rs100,000 ($2,000) Nano, set to be India’s cheapest car, would still be launched.
The company has said that the car, hailed for its low-cost engineering and sporty looks, will roll out in the first quarter of 2009 but no firm date has been set.
“It will be out and I hope it will live up to expectations that everyone has had,” Tata said.