Tata Sons is infusing fresh capital of Rs 30,000 crore (approximately $3.5 billion) into some of its fastest-growing and strategically important ventures, including Tata digital, Tata Electronics and Air India, and also its defence and battery businesses. The investment will be through equity infusion, people familiar with the matter told Economic Times.
According to the report, the Tata Sons board cleared the investment at a meeting held on Thursday. This follows the $120 billion investment the group has already committed to new businesses over recent years.
“The capital infusion is considered part of the holding company’s plan to meet requirements at the execution level, necessary to scale the new businesses for their next phase of growth,” a group executive told The Economic Times.
The resources are being allocated to the defence sector with the segment reaffirmed as a core strategic area, the officials said. The report further maintained that the company also plans to soon name a new CEO for Tata Digital following the recent exit of Naveen Tahilyani, who stepped down less than a year after taking over.
Per Tata Sons, these businesses have moved past their early-stage development and are ready to focus on execution and profitability. Tata Electronics and Tata Digital are already among the group’s top 10 ventures by size.
The company is now working towards bringing these businesses into the top five in terms of revenue and ensuring that they turn profitable by FY27. The executive added, “Group chairman [N Chandrasekaran] is now keeping close track of the progress of the new businesses.”
Earlier last week, N Chandrasekaran stepped down as chairman and director of Tata Chemicals, effective May 29, 2025. He has been at the helm of Tata Sons since February 2017 and was reappointed in 2022 for a second five-year term.