Inside N. Chandrasekaran's plans for Tata Group in 2019
Tata Sons chairman N. Chandrasekaran wants Tata Group companies to focus on providing customers with the best products and services, while managing costs
Tata Group, India’s biggest conglomerate, will leverage its strengths to stay relevant, Tata Sons chairman N. Chandrasekaran said. He wants Tata companies to focus on providing customers with the best products and services, while managing costs. “This means making strategic decisions factoring in both the ups and downs inherent in business cycles. We should be prudent in good times, while creating an operating and capital structure that will see us through difficult periods.”
The chairman said he would continue to simplify Tata Group’s structure. “In total, we committed over ₹ 70,000 crore to deleverage and restructure Tata companies, consolidate cross-holdings, acquire strategic assets and infuse much-needed capital for future growth.”
In some areas, such as aerospace and defence, the group is consolidating its businesses into a single entity. In other areas, companies are reducing subsidiaries or exiting non-core businesses.
Trends: Trade actions, the Chinese economy, rising US interest rates, Brexit impact.
Focus: Creation of the joint venture in Europe, integration of newly acquired facilities in India, ensuring the Kalinganagar expansion proceeds as planned, cutting debt, reviewing portfolio of subsidiary rms, improving return on capital.
Trends: Electric and shared vehicles. Price positioning will be a challenge as BS VI emission norms come into effect.
Focus: Being prepared for market volatility and creating more opportunities. Two new vehicle architectures, OMEGA and Aquila, will make their market debut.
Trends: A rise in the number of business travellers and individual travellers. Demand for luxurious travel will grow further.
Focus: Increasing the market share, consolidating the average daily rate, reducing debt and continuing to target an 8% Ebitda margin.
Trends: Higher AI adoption, cyber security, data privacy, increase in deployment of IoT tech.
Focus: Making TCS enterprise-agile by 2020, continuing with digital reskilling, building local talent through STEM initiatives such as GoIT.
Trends: Innovation, sustainability and digitization.
Focus: Investing another 2,000 crore for the expansion of the Mithapur plant, increasing the capacity of the Ankleshwar plant, some acquisitions in the consumer products business.
Trends: More hyperlocal delivery firms. Data analytics will redefine retail, aggregators and multi-brand outlets will grow.
Focus: Raising market share, introducing more tech-powered products in the watches and accessories division, expanding Tanishq deeper into smaller towns.
Trends: Decentralization towards renewable sources. Integration of intermittent power into the grid will be a challenge.
Focus: Raising the renewable portfolio share in total generating capacity to over 40% by 2025, acquisitions of stressed assets for conventional thermal generation, selling non-core assets.
Trends: NBFCs will continue healthy growth through innovation in products and services. Advanced analytics will oer deeper understanding of customers and their creditworthiness.
Focus: Building a diverse liability base, leveraging tech to cut costs.
Trends: With health and wellness set to become a more premium experience, tea, coffee and water will leverage this opportunity. Online retail will account for a much larger share.
Focus: Leveraging white space opportunities by catering to regional palates. The global focus will be on green, speciality, fruit and herbal teas.
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