Tata Group chairman N Chandrasekaran to group CEOs: 'Cyclical quarters can be no excuses and ...'

Tata Group Chairman N Chandrasekaran has reportedly urged group company CEOs to aggressively pursue growth despite increasing economic challenges. According to a report in Economic Times quoting company executives, Tata Group chairman has urged group company CEOs to aggressively pursue growth despite mounting uncertainties in domestic and global markets. In internal strategy sessions and business reviews, Chandrasekaran is reported to have emphasised boldness in ambition, stating that while margins can be adjusted over time, growth opportunities must be seized immediately.

Despite slowing growth and profit margins in several key businesses, Chandrasekaran is said to be quite optimistic about the group's long-term prospects. Tata Sons is the holding company of the $375 billion Tata Group."Our chairman is clear that cyclical quarters can be no excuses and that the goal has to be scalable profitable growth," a top executive told ET.
In recent strategy sessions, he has emphasized the importance of seizing growth opportunities, even if it means adjusting profit margins in the short term. Tata Sons is allocating significant capital to support these ambitious growth targets.

The mandate reportedly comes against the backdrop of more than 15 group companies, including Tata Consultancy Services (TCS), Tata Motors, Tata Steel and Tata Power, reporting single-digit growth in revenue in the first half of FY25 while profit slowed at an equal number of companies.
TCS reported modest numbers in the first half with 6% growth in revenue and profit from the year earlier, primarily due to weakness in the Americas and the life sciences & healthcare and communications, and media & technology verticals. Tata Group-owned Titan reported a 15% decline in net profit for the first half mainly due to the impact of customs duty reduction while the margin contracted, primarily led by weak demand in high-value solitaire jewellery. Tata Chemicals saw first-half profit drop to Rs 457 crore from Rs 1,082 crore in the year earlier.

The group has high expectations for Tata Electronics, Air India and Tata Digital. These group companies are still in the "building-up" phase to gain in scale and turn into financially strong businesses over the next three years. The biggest investments in 2024 have gone into these three units besides battery manufacturing. The mandate for these companies is that they should be among the Tata Group's top 10 businesses in the next three years.
All in all the Tata Sons chairman is said to be focused on ensuring that the group remains resilient in an increasingly competitive landscape. "While some quarters may pose challenges, he has emphasised the importance of seizing significant growth opportunities in each sector with a long-term vision," said an executive, summing up Chandrasekaran's message.