Tata Group committed over Rs 70,000 cr investment in 2018
In his New Year letter addressed to employees, Tata Sons’ chairman Chandrasekaran said much-needed capital was infused to restructure Tata companies and to acquire strategic assets.
Tata Group has committed over Rs 70,000 crore to deleverage and restructure Tata companies, consolidate cross-holdings, acquire strategic assets and infuse much-needed capital for future growth in 2018, N Chandrasekaran, chairman of Tata Sons, said in his New Year letter addressed to employees.
The Tata group’s collective market capitalization crossed Rs 10 lakh crore in 2018.
Chandra said the group was working diligently to simplify itself and to build capital and to navigate an unpredictable global environment — which he said is the “one characterized by a new regime of trade tensions, geopolitical volatility, and regulatory uncertainty”. Set against these headwinds, Chandra said that the group was moving ahead on the course set under the ‘One Tata’ strategy, while it was simplifying, synergizing and scaling (3S) to create an agile, powerful platform.
As part of the process, the group is simplifying its aerospace & defense vertical consolidating the businesses into a single unified entity. In other areas, companies are reducing subsidiaries or exiting non-core businesses to bring focus and agility. Also, under One Tata, the companies are working together to create new business approaches and differentiation. For instance, developing of electric vehicle (EV) ecosystem by Tata Motors in partnership with Tata Capital for financing and Tata Power for the charging infrastructure network.
As for the scale, the group companies are building capability, talent, and infrastructure. The group’s consumer, retail and financial services companies are also working on their digital strategy for expansion.
Chandra noted that 2019 would bring in a number of macro challenges, which could heighten concerns around country risk, liquidity trends and trade-related shocks at a time when China’s growth impulse is slowing, also political uncertainty remains high with the upcoming elections in India, he observed. “We can address these global shifts effectively by harnessing scale, synergy, digital depth, operational focus, and agility. Our job is to run our marathon — not to be distracted by somebody else’s sprint. We need to focus intently on what we can control: Providing our customers with the best products and service, while managing our costs, strengthening the Tata brand and driving long-term value creation,” he said.
He added that such challenges would mean the group 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,” he said.
He also highlighted that talent would be a significant focus for the group in 2019. The group has over 702,000 employees around the world. While a few of group’s executives found mentions in the #MeToo movement in 2018, Chandra underlined that the role of women in the workforce and participation in decision-making structures is mission-critical for a collective future.
“As a group, we have zero tolerance when it comes to harassment of any kind. Creating safe and dignified spaces for our people has been paramount to us since inception. We will continue to prioritize this both through our policies and most importantly, our culture,”
Best Commodity Daily Market News, Click Here Watch More News- Ripples Advisory, Get 2 Days Free Trial or See Stock Cash Services. "Focus on all moments - big and small"
0 comments
Note: only a member of this blog may post a comment.