Plan To Prune Portfolio, Support TCS, Steel, Motors: Chandra’s Mantra

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Plan to prune portfolio, support TCS, steel and motors appointed Chandra’s Mantra. One of the largest country prune portfolio Natarajan Chandrasekaran the recently appointed Chairman of Tata Sons. The veteran is trying to find ways and means to scale up, and consolidation of businesses is certainly one of the important ways, according to him.

India’s largest conglomerate by revenues will simplify overlapping business operations, prune its expansive portfolio by consolidating companies which have synergies, create new business clusters such as defence, infrastructure, consumer and retail, financial services and hotels and airlines while supporting the growth of the three largest companies, Tata Consultancy, Tata Steel and Tata Motors.

The Tata Group looks to focus on five segments retail and consumer, financial services, infrastructure, tourism, and defense, to achieve scale. Elaborating on the strategy for these 5 segments, Chandrasekaran said, All of them present a significant opportunity for growth and we want to address that.

The strategic partnership with Thyssen Krupp for its European steel business will give financial muscle to Tata Steel to double down on the growth prospects in India. We have delinked the Indian and European operations of Tata Steel, Chandra said. Similarly, Tata Power, hamstrung by the loss-making Mundra power plant will have to bring down its debt either by selling non-core assets or by realigning its geographical footprint.

The joint venture will have a turnover of Rs 1,15,000 crore.The company will be headquartered in Amsterdam, Netherlands. As per the company’s estimates, cost synergies for the company is expected to be in the range of 400-600 million euro per annum. It’s about creating a value proposition. With the right set of people and collaboration, you can do it. With all humility, I can say I have done this before.

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