Expressing his confidence in the Indian market, Tata group chief Natarajan Chandrasekaran today said no other market is going to grow faster than India in the next 10-20 years. He said the Tata group of companies must take the opportunity to make investments and contribute to India’s growth story. The group’s chairman also said that there is a need for consolidation within the group. “No other market, I believe, is going to grow faster than India in the next 10-20 years. Considering our demographic profile, we will have a consumer population that is going to have higher spending power,” Chandrasekaran said in an interview with the group’s in-house magazine Tata Review.
Chandrasekaran also stressed that India is a massive market, the biggest game in town. He said that there is a fantastic opportunity for many of Tata group businesses. However, he also said different firms of the Tata group need to understand their individual domestic prospects, because all of them may not have the same growth opportunities. “Each will need to craft its own strategy and this will have to be company specific,” he added. When asked about the ‘constant criticism’ of the Tata group being too spread out which prevented it from capitalising fully on its potential, he said, “There is definitely some truth in that.”
“We have far too many companies in the Tata group and some level of consolidation is essential. Our aim should be to achieve the optimal level of consolidation without losing the entrepreneurial spirit we are famous for,” the top boss added.
Asked about his experience as the Tata group chief, Chandrasekaran, said, “Overall, it has been a good experience thus far.” He also highlighted the significance of the rapidly changing world saying, “They have to understand what it means to them, be open enough to adopt and adapt, and make the necessary adjustments in their business models. We will definitely engage with our companies and bring them the necessary tools to get them started on this journey.”
Earlier it was reported that Chandrasekaran was assembling a team of dealmakers to refocus some of the group’s biggest businesses, expand its financial services and consumer businesses and sell or merge dozens of smaller units, according to interviews with senior executives. As many as one-third of the group’s 100-plus units could go as Chandrasekaran and his team try to balance the need to prune unprofitable businesses at the 149-year-old group with the Tata family legacy of social responsibility, according to the officials.