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 capitalisation 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 characterised 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, synergising and scaling (3S) to create an agile, powerful platform.
As part of the process, the group is simplifying its aerospace & defence 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. -FE