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Tata Group Chairman N. Chandrasekaran, in his letter to Tata employees, said the Group needs to make its management and organisation structures simpler and impactful to reduce complexity across businesses and simplify, helping it respond and react faster, and bring agility and spur faster decision-making.
“It has been a year of significant change for the Group, and I believe that we are approaching 2018 with greater collective purpose as we work together to shape the future,” said Chandrasekaran, who took over as the Chairman of the $100 billion conglomerate in February this year. “In order to achieve peak performance, we must focus on three things: simplification, synergy and scale.”
Tata Group is selling non-core companies to make the loosely-held conglomerate leaner. The focus now is strengthen balance sheets, reduce debt and develop scale under the new leadership of Chandrasekaran.
Over the last several months, Tata Steel forged a merger of its UK business with German steelmaker ThyssenKrupp and debt-laden Tata Teleservices sold mobile business to Airtel and many small businesses – bringing resolution to two of the most troubled businesses of Tata Group. Excluding Tata Consultancy Services, the empire has $25.5 billion in net debt.
“As a Group, we have a presence in many sectors which have potential to scale. Each of them presents significant opportunity of growth. We need to scale through growth, consolidation and collaboration. These efforts must be unequivocally underpinned by a culture of high performance and accountability,” he said in the letter.
He reiterated his motto of ‘One Tata’ of leveraging collaboration between Group companies and associates, to be a force multiplier. He said unlocking the hidden productivity of the Tata ecosystem can catapult the Group to a new level of sustainability and performance.
In his interview with Economic Times in October, Chandrasekaran said he wants to bring down number of Tata companies to 5-7 from about 110 at present.
“Over the last ten months, I have visited many companies and met with a large number of Tata associates. It has been a very inspiring experience for me and I have been humbled by everybody’s passion and commitment to the Group, eagerness to contribute ideas, wanting to participate and be high achievers,” said Chandrasekaran, who is popularly known as Chandra.
Chandra was previously the CEO of TCS, Tata’s group biggest and most profitable business. He was elevated as the chairman after Tata Sons board removed Cyrus Mistry, citing under performance.
“As we move ahead, I am more convinced than ever before about the future power and potential of the Tata businesses. With our diversified global footprint and our presence in the lives of almost a billion consumers, we are uniquely positioned,” said Chandrasekaran.