Unveiling a new blueprint for growth, the Tata group, India's largest diversified business conglomerate, has communicated to the top brass of its 100-odd companies a new vision to maximise synergies among group companies by focusing on four new clusters -defence & aerospace, retail, infrastructure and finance. The group will invest about $35 billion in the next three years, Tata Sons chairman Cyrus Mistry has said.
Mistry was outlining the group's vision for 2025 and its immediate plans for the next three years, at an annual gathering of the top brass of its group companies on Tuesday.
In an email response, a spokesperson for Tata Sons said: `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.“
“To carry forward this mission in the near term, the group has adopted a vision, to be achieved by 2025.
The Tata group's Vision 2025, the spokesperson said will be to cater to “25% of the world's population. As a result, Tata will 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,” the spokesperson added.
The group, which has been weighed down by its telecom business, automobile business in India and its acquisition of Corus, has never got back to the 8.5% operating margin it achieved in 2008, before the global financial crisis reduced its profitability. Mistry urged his colleagues to get back to the 8% margins of 2008.
For this, some businesses may have to be divested and some restructured, Mistry is said to have stated at the meeting.
The conclave of Tata Group leaders, an annual feature to review and strategise for the future, has been an important event since the days of JRD Tata. The meeting held on Tuesday was significant for another reason as it was the 110th birth anniversary of JRD Tata, the late chairman of the Tata group. At the meeting, the group’s future strategies were discussed. “Each Tata company will strive to outperform markets, sharply focussing 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 spokesperson said.
As a part of this strategy, the group centre will strongly champion companies which are world class and, where necessary, facilitate creation of new companies, said the spokesperson. This holistic strategy will also include support to companies, if required, to restructure their businesses which do not have the potential to meet performance and strategic criteria in the long term or benefit from parenting advantages.
It will also include investment in joint development of capabilities and future technologies, and leveraging the Tata presence in countries to help companies expand their international footprint.
The group has codified its tradition of an inclusive and responsive business approach into a mission statement, which is “To improve the quality of life of the communities we serve globally through long term stakeholder value creation based on leadership with trust”.
Tata group’s total revenue grew by 18.5% in 2013-14 at Rs.6,24,757 crore ($103.27 billion). The group, which has over 100 operating companies in seven business sectors — communications and IT, engineering, materials, services, energy, consumer products and chemicals — had posted total revenue of Rs. 5,27,047 crore ($96.79 billion) in the previous fiscal. The international revenues of the group in the fiscal 2013-14 stood at Rs.4,19,860 crore, up 27% from Rs.3,30,530 crore in the preceding fiscal, as per information available on its website
Mistry was outlining the group's vision for 2025 and its immediate plans for the next three years, at an annual gathering of the top brass of its group companies on Tuesday.
In an email response, a spokesperson for Tata Sons said: `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.“
“To carry forward this mission in the near term, the group has adopted a vision, to be achieved by 2025.
The Tata group's Vision 2025, the spokesperson said will be to cater to “25% of the world's population. As a result, Tata will 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,” the spokesperson added.
The group, which has been weighed down by its telecom business, automobile business in India and its acquisition of Corus, has never got back to the 8.5% operating margin it achieved in 2008, before the global financial crisis reduced its profitability. Mistry urged his colleagues to get back to the 8% margins of 2008.
For this, some businesses may have to be divested and some restructured, Mistry is said to have stated at the meeting.
The conclave of Tata Group leaders, an annual feature to review and strategise for the future, has been an important event since the days of JRD Tata. The meeting held on Tuesday was significant for another reason as it was the 110th birth anniversary of JRD Tata, the late chairman of the Tata group. At the meeting, the group’s future strategies were discussed. “Each Tata company will strive to outperform markets, sharply focussing 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 spokesperson said.
As a part of this strategy, the group centre will strongly champion companies which are world class and, where necessary, facilitate creation of new companies, said the spokesperson. This holistic strategy will also include support to companies, if required, to restructure their businesses which do not have the potential to meet performance and strategic criteria in the long term or benefit from parenting advantages.
It will also include investment in joint development of capabilities and future technologies, and leveraging the Tata presence in countries to help companies expand their international footprint.
The group has codified its tradition of an inclusive and responsive business approach into a mission statement, which is “To improve the quality of life of the communities we serve globally through long term stakeholder value creation based on leadership with trust”.
Tata group’s total revenue grew by 18.5% in 2013-14 at Rs.6,24,757 crore ($103.27 billion). The group, which has over 100 operating companies in seven business sectors — communications and IT, engineering, materials, services, energy, consumer products and chemicals — had posted total revenue of Rs. 5,27,047 crore ($96.79 billion) in the previous fiscal. The international revenues of the group in the fiscal 2013-14 stood at Rs.4,19,860 crore, up 27% from Rs.3,30,530 crore in the preceding fiscal, as per information available on its website
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