Tata Group Chairman N Chandrasekaran has reportedly called on CEOs of group companies to aggressively chase growth despite the growing economic uncertainties. According to a report by the Economic Times citing company executives, Chandrasekaran has emphasized the importance of being bold in business strategy during internal reviews and strategy sessions, urging CEOs to focus on capturing growth opportunities even in the face of domestic and global market challenges. While he acknowledged that margins can be adjusted over time, he stressed that growth must be prioritized immediately.
“Our chairman is clear that while economic cycles may vary, there should be no excuses for scaling profitable growth,” said a top executive speaking to the Economic Times.
Despite facing slowing growth and narrower profit margins in key sectors, Chandrasekaran remains optimistic about the long-term prospects of the Tata Group, a $375 billion conglomerate. Tata Sons, the holding company of the group, is reported to be providing significant capital to support these ambitious growth targets.
The Mandate for Tata Group Companies
The directive comes at a time when more than 15 Tata Group companies, including Tata Consultancy Services (TCS), Tata Motors, Tata Steel, and Tata Power, have reported single-digit revenue growth for the first half of FY25, with profits slowing in several areas. TCS reported a modest 6% growth in revenue and profit, primarily impacted by a decline in the Americas and challenges in the life sciences & healthcare and communications, media & technology sectors. Titan, another key company in the group, experienced a 15% drop in net profit due to lower demand for high-value solitaire jewellery and the impact of customs duty reductions. Tata Chemicals also saw its first-half profits drop significantly, from Rs 1,082 crore to Rs 457 crore.
Tata Group’s Major Investments for 2024
The group is particularly focused on high-growth potential companies such as Tata Electronics, Air India, and Tata Digital. These businesses, which are still in the “building-up” phase, are expected to scale rapidly and become financially strong in the next few years. Significant investments in 2024 have been directed toward these companies, as well as the battery manufacturing sector. The goal for these businesses is to be among the top 10 of the Tata Group’s portfolio by 2027.
Overall, Chandrasekaran is committed to ensuring that the Tata Group remains resilient in a highly competitive market. An executive summarized his approach, saying, “While certain quarters may present challenges, the chairman has emphasized the need to seize growth opportunities in each sector with a long-term vision.”
