The Tata Group will continue to invest in the India growth story as the country is still an attractive investment destination, especially with the recent emphasis on policy clarity and a renewed thrust to economic reforms by the government.
In his first address to over 456,000 employees of the Tata Group, Cyrus Mistry, the new chairman, said the group had already put in place plans for over Rs 45,000 crore additional investments over the next two years. The group has invested Rs 50,000 crore over the past three years across various businesses in the country.
The emailed statement, which touches on many issues, also said while handing over of the responsibility of chairmanship “brings with it the winds of change”, the core of the Tata Group will remain unchanged. On his predecessor Ratan Tata, Mistry said the group would continue to differentiate itself from peers through its core DNA — “Through Mr Tata’s uncompromising adherence to a resilient value system, a platform has been created which everyone can cherish and that evokes pride in all”.
Innovation and agility were the other major themes of Mistry’s statement. “As history has shown, corporations that are happy with resting on their laurels are weeded out by nimble competition,” he said.
For this, he urged everyone to improve their business’s competitiveness and address the small issues often overlooked, but end up making a significant difference to the value proposition of products and services.
Along with the focus on India, Mistry also said the group needed to work to both deepen and widen global engagement with an emphasis on emerging markets in Asia, Africa and parts of Latin America. “Of course, each company's path to globalisation will be different, with differing approaches to the spreading of risk, acquisition of technology, access to talent, and investment in long-term growth markets,” he said.
He also touched on the crisis in the mature markets. “There is currently much debate about the future of free markets across the world, particularly in the wake of the global financial crisis. At such a time, l believe our businesses must play a leadership role in strengthening the positive feedback loop between markets and the institutions that govern their operation,” he said.
Mistry also recognised the need of team spirit among various businesses. He said a considerable premium needs to be placed on working together in teams that leverage and collectively enhance each of the group’s individual strengths. “We must leverage the power of the group by encouraging our people from different Tata companies to share best practices and work together in co-creating shared value,” he wrote.