Capital investments worth $35 billion deployed by the Tata group in the past two years will be key growth drivers for the salt-to-software conglomerate in 2016. In a letter to his managers, Tata group chairman Cyrus Mistry on Thursday asked for greater agility at both strategic and organisational levels in the group. Mistry has called for identifying opportunities “with a sense of urgency” in emerging business opportunities. Sensing opportunities in China’s “re-balancing” of its economy, recovery in the US and growth in Asia and Africa, are the other areas Mistry has outlined.
“The major impact of China’s re-balancing of its economy is being felt in many countries and while trade flows have been distorted as a result of China’s transition, within China itself the shift to domestic consumption can open new horizons for our companies,” he said.
Similarly, referring to the signals of a recovery in the US economy, Mistry says, “The year ahead will both test the group’s resilience and also present new paths to expand and seed new businesses. To enhance and secure leadership in such an environment, we will have to become ever more agile both at a strategic and an organisational level,” Mistry exhorted the over 6 lakh employees of the group.
Stressing the need to be nimble-footed in a fast changing environment, he said: “We need to identify opportunities with a sense of urgency. These will then need to be converted by unleashing pioneering entrepreneurship.” He further added: “In continuing to seize business opportunities, Tata companies will have to stay on top of emerging business technologies, particularly in the digital space. They will have to network more closely, blurring, in the process, the boundaries between departments, verticals and businesses.”