Mumbai, July 29: The Tata group plans to invest a whopping $35 billion over the next three years and may take another shot at banking if regulations become conducive.
The $100-billion group has also identified four new clusters — defence & aerospace, retail, infrastructure and finance — to maximise synergies across its more than 100 operating companies.
Chairman Cyrus P Mistry today discussed his big plans for the group, which has a presence in over 150 countries, as part of his Vision 2025 programme.
Mistry took over the reins of the group in December 2012.
When contacted, a Tata group spokesperson said Mistry had outlined three key areas as part of his new strategy at the annual leadership conference here.
This includes nurturing group companies by leveraging the parenting advantage of the group centre (a strategy making body), harnessing synergies to maximise the performance of companies and optimising its portfolio for sustained future performance.
As part of Vision 2025, the Tata group hopes to be among the 25 most admired corporate and employer brands globally with a market capitalisation comparable to the 25 most valuable companies globally.
For the current fiscal, the Tata companies are implementing capital expenditure plans of over Rs 65,000 crore.
Mistry also indicated at the meeting that the group might reconsider a banking foray, provided the regulations were favourable.
Tata Sons had withdrawn from the banking licence race in November last year citing the rigid corporate structure that the RBI had set for financial services companies.
Since then, the central bank has come out with draft guidelines for licensing of payments and small banks.
Mistry, who is learnt to have dwelt on the potential of financial services, is hopeful that the group can leverage its twin strengths of technology and wide reach to play a meaningful role in this segment.
He pointed out that while the conglomerate will consider inorganic opportunities to grow further, the focus will be on profitable growth. This may see companies consolidating or even restructuring their operations.
“As part of this strategy, the group centre will strongly champion companies which are world class and, where necessary, facilitate creation of new companies. This holistic strategy will also include support to companies to restructure their businesses,” the spokesperson said.
Mistry is said to have also focused on the strong brand equity enjoyed by the group.
He observed that global revenues had seen a sharp jump in the last 10 years and the market capitalisation of the group was comparable to that of Unilever or PepsiCo. Further, it is the only Indian group whose market cap had exceeded the $100-billion mark, he added.
The spokesperson added that group wide initiatives on aspects such as customer insight and diversity will be followed and this will allow harnessing of synergies among companies.
Apart from this, leveraging the Tata presence in countries will help companies expand their international footprint.
To outperform markets, each Tata company will sharply focus on performance, strive for excellence, seek to achieve global or national scale, and also foster fledgling businesses with a sound evaluation of their growth potential.