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.