On Wednesday, N. Chandrasekaran will complete one year at the helm of Tata Sons Ltd, the holding company of the salt-to-software conglomerate.
The story so far
24 October 2016: Cyrus Mistry removed as chairman of Tata Sons.
21 February 2017: Chandrasekaran takes over as chairman of the $100 billion group.
28 February 2017: Tata Sons and NTT Docomo tell Delhi high court they have reached a settlement agreement concerning enforcement of an arbitration award in the Tata Docomo issue.
20 September 2017: Tata Steel Ltd and German steelmaker Thyssenkrupp AG agree to merge their European steel operations to create the continent’s second-biggest maker of the alloy, concluding one-and-a-half years of tortuous negotiations.
12 October 2017: Tata Sons sells its consumer mobile business to Bharti Airtel Ltd virtually for free, as part of Chandrasekaran’s strategy of exiting businesses which have been a prolonged drag and have little visibility of future profits.
In the past year, Chandrasekaran has repeatedly stressed on the need to simplify the holding structure within the group and allocate capital more efficiently. Here’s a look at how the group will take shape under him.
Companies will be classified into 7-8 sectors rather than over 100 operating companies currently. The sectors are:
Tata Consultancy Services (Independent cluster)
Tata Steel (Independent cluster)
Tata Motors (Independent cluster)
Aerospace, defence and infrastructure
The new businesses that Tata group will enter:
Smart mobility: While Tata Motors Ltd will continue to make electric vehicles, another group company, Tata Power Co. Ltd, will look to build charging infrastructure and distribute equipment in key markets.
Smart cities: Tata group is seriously evaluating entering the Smart Cities project by channelizing its resources and expertise across group companies. A model is likely to be evolved on the lines of how the Tatas run the Jamshedpur township.