Tatas to invest $35 bnover 3 years; 2013-14 revenue tops $100 billion
The Tata Group will invest $35 billion (about Rs 2.1 lakh crore) over the next three years as part of its broad strategy to be among the world’s top 25 companies by 2025.business Updated: Jul 30, 2014 00:48 IST
The Tata Group will invest $35 billion (about Rs 2.1 lakh crore) over the next three years as part of its broad strategy to be among the world’s top 25 companies by 2025.Addressing the Tata Group’s annual leadership conference in Mumbai on Tuesday evening, chairman Cyrus Mistry laid out the road map for the diversified conglomerate, which saw its total revenue crossing the $100-billion mark again in 2013-14.
“The group has adopted a vision, to be achieved by 2025. Tata will be amongst the 25 most admired corporate and employer brands globally, with a market capitalisation comparable to the 25 most valuable companies in the world,” a Tata Group spokesperson said.
“Towards fulfilling this vision, the group will be investing about $35 billion in the next 3 years,” the spokesperson added.
To maximise synergies, the group is creating a special focus on four new clusters — defence and aerospace, retail, infrastructure and finance.
The strategy will include support to companies, if required, to restructure their businesses which do not have the potential to meet performance and strategic criteria in the long term or benefit from parenting advantages.
The group centre will also focus on companies that are world class and, where necessary, facilitate creation of new companies, the spokesperson said, adding the company cannot share specific details of the plan at this point in time.
Tata Group’s total revenue grew by 18.5% to $103.27 billion (Rs 6,24,757 crore) in 2013-14. During the fiscal, its employee count increased by 6.8% to 5,81,473 from 5,44,502 in 2012-13.
“It is correct that the Tata Group has outlined its strategy of nurturing group companies by leveraging the parenting advantage of the group centre, harnessing synergies to maximise the performance of companies and optimising its portfolio for sustained future performance.
The group that has over 100 operating companies in seven business sectors including IT, engineering, materials, services, energy and consumer products. It had posted a revenue of Rs 5,27,047 crore in the previous fiscal year.
International revenues of the group stood at Rs 4,19,860 crore in 2013-14, up 27% from Rs 3,30,530 crore in the preceding fiscal.
The group’s 32 listed companies had a market capitalisation of Rs 8,46,535 crore as on July 24, 2014 compared to Rs 6,84,859 crore on March-end 2014 and Rs 5,18,716 crore on March-end 2013.
First Published: Jul 29, 2014 23:35 IST