Tata Group to invest $35 billion in three years
Tata Group has announced plans to invest $35 billion (Rs.2.10 lakh crore) in three years with an objective to emerge as one among the top 25 business groups in the world. This was stated by Tata Group Chairman Cyrus Mistry here at an internal meeting attended by CEOs of group companies on the occasion of late JRD Tata’s birth anniversary.
Mr. Mistry took this opportunity to unveil Tata Group’s vision 2025 whereby 25 per cent of the world’s population must experience Tata’s commitment to improving the quality of life of customers and communities.
As a result, Tata would be among the 25 most admired corporate and employer brands globally, with a market capitalisation comparable to the 25 most valuable companies in the world, he said.
Mr. Mistry said the group would be creating a special focus on four new clusters — Defence & Aerospace, Retail, Infrastructure and Finance. He said the group would play a strong role in financial services and might change its decision on banking in case of change in government policies going forward. He said the group was open to inorganic growth and was looking at disinvestment and consolidation.
“While we cannot share details of this internal event, we can only confirm the following: ‘It is correct that the Tata group has outlined its strategy of nurturing group companies by leveraging the parenting advantage of the group centre; harnessing synergies to maximise the performance of companies and optimising its portfolio for sustained future performance,” a Tata Group spokesperson said.
Mr. Mistry said the Tata group would nurture its companies by building the reputation of the Tata brand globally, attracting and developing leaders of tomorrow, and improving the Tata Business Excellence Model (TBEM) process to strengthen performance discipline within the group.
To outperform markets, each Tata company would sharply focus on performance, strive for excellence for global competitiveness, seek to achieve global or national scale, and foster fledgling businesses with a sound evaluation of their growth potential, the Tata Group Chairman said.
As a part of this strategy, the group centre would strongly champion companies which were world-class and, where necessary, facilitate creation of new companies. This holistic strategy would also include support to companies, if required, to restructure their businesses which did not have the potential to meet performance and strategic criteria in the long-term or benefit from parenting advantages, he said.
Tata group’s total revenue grew by 18.5 per cent in 2013-14 to Rs.6.25-lakh crore ($103.27 billion). The group that has over 100 operating companies in seven business sectors such as communications and information technology, engineering, materials, services, energy, consumer products and chemicals, had posted total revenue of Rs.5.27-lakh crore ($96.79 billion) in the previous fiscal.
International revenues in 2013-14 stood at Rs.4.20-lakh crore, up 27 per cent from Rs.3.30-lakh crore in the preceding fiscal, as per information available on its website.
Tata companies have operations in more than 100 countries across six continents, and export products and services to over 150 countries.