Cyrus Mistry, chairman, Tata Sons, said on Wednesday the Tata Group has already put in place plans for investments of over R45,000 crore in the next two years. “As a Group, we have over the past three years invested over R50,000 crore across our various businesses in the country, in the process creating primary employment for over 85,000 persons while generating many more secondary and tertiary jobs,” Mistry said in a letter to colleagues. Mistry, 44, took over from Ratan Tata as head of the Tata conglomerate on December 28, 2012. Tata stepped down as chairman after two decades during which the group acquired several large corporations overseas including steelmaker Corus and automobile firm Jaguar and Land Rover.
Mistry observed that revenues at over $100 billion seemed an “incredible figure when you consider where we were a decade back.” India’s biggest business group has presence in 85 countries and has interests in technology, telecom, steel, automobiles and engineering. Recent reports have noted that Ratan Tata had, before he stepped down, set a revenue target for the group of $500 billion in the next decade.
Mistry believes the group must differentiate itself from competitors through greater understanding of customer needs and a culture built around customer centricity, innovation and a focus on profitable growth. “We will need to be relentless in our pursuit of improving our competitiveness and in addressing the small issues that are often overlooked but end up making a significant difference in the value proposition of our products and services,” Mistry wrote.
Reiterating the commitment to India, Mistry observed that the recent emphasis on ‘policy clarity and a renewed thrust to economic reforms’ was encouraging. “With a sustained focus on policy stability and implementation, I believe that India would continue to be an attractive investment destination,” the chairman observed. He added the group will also be required to work to both ‘deepen and widen our global engagement with an emphasis on emerging markets in Asia, Africa and parts of Latin America, adding to our existing presence in Europe and America’.
As experts have pointed out, Mistry will have a tough time since some large group companies like Tata Teleservices have piled up losses and others like Tata Steel have hugely leveraged balance sheets.
From Chairman, On way Forward
* Tata Group has invested R50,000 cr, created 85,000 jobs
* Group must differentiate itself via customer centricity
* Policy clarity, renewed thrust on reforms