Tata companies well-capitalised, focus on future growth business: N Chandrasekaran.

The business is well-capitalized with strong balance sheets, and every major company has turned around in the previous four years to contribute significantly to group profitability.

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In the last five years, Tata Sons have invested approximately Rs 80,000 crore in group companies and made additional secondary market purchases of around Rs 10,000 crore. The $125 billion steel-to-consumer goods conglomerate’s parent firm also invested an extra ‘20,000 crore in new businesses like the consumer app — Tata Neu, Air India, and upcoming forays into semiconductors, batteries, and 5G. It has also invested up to Rs 15,000 crore towards the revival of its recent airline acquisition, Air India, since January 2022.

“Tata Sons and its group companies are well-capitalized, with strong balance sheets, and every major company has performed well in the last four years, contributing significantly to group profits.” I am pleased to report that all companies now have strong balance sheets, and we do not believe that Tata Sons needs to invest any additional cash into these businesses at this time. Tata Sons will now focus on future growth business. It is possible now because all group companies are aligned and huddled together and each management is focused on goals, aspirations, and performance,” Tata Sons chairman N Chandrasekaran said in an exclusive interview held at Tata Group headquarters, Bombay House.

In February of this year, Chandrasekaran was reappointed as chairman of Tata Sons for a second five-year term. In October 2016, he joined the Tata Sons board of directors, and in February 2017, he became chairman. Chandrasekaran also chairs the boards of operating companies such as Tata Steel NSE -2.27 %, Tata Motors NSE -4.39 %, Tata Consumer, Tata Power NSE -3.89 %, Air India, Tata Digital, and TCS NSE -3.81 %, among others.

“Across the board, capital deployment has been robust. Previously, every major corporation, whether Tata Power, Tata Motors or Tata Consumer, was the subject of a negative tale. Today, that perception has shifted, and every business now has a positive narrative to tell. I’m incredibly proud of how all of these businesses have staged a turnaround aided by group synergies. Fundamentally, all initiatives we undertook had three pillars: Strengthen the core, transform the core and create future businesses,” he said.


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