Tata Sons chairman N Chandrasekaran has asked over 30 CEOs and managing directors of group companies to brace for a tougher business environment, as the war in the West Asia continues to disrupt supply chains, sources told PTI.
At a review meeting on the war’s implications on Thursday, the assessment pointed to a common concern that supply chain disruptions and elevated commodity prices would hurt demand while driving up operating costs, squeezing margins, the sources added.
The Tata boss also recommended measures to focus on conserving and managing cash carefully and judiciously. He advised caution in kicking off projects and “if necessary, have a relook at the timelines”.
For many of the companies, the disruption would lead to lower capacity utilisation while for others, delays in supplies can push timelines in building infrastructure or capacity.
“The chairman advised companies to be prepared for a tougher business environment marked by demand slowdown, project delays driven by supply chain disruptions and cost increases due to oil price, shortages, currency movements, logistics costs, among others,” the source said.
A key focus of the meeting was the safety of roughly 10,000 Tata Group employees working across companies including Voltas, TCS, Indian Hotels Company and Titan in the conflict-affected region. Steps were outlined to facilitate their return, according to a person with direct knowledge.
Chandrasekaran stressed on the need to “take care of employees, including temporary employees”. “Further, we need to immediately address anxiety and stress-related issues of our employees and their families in the region,” he said.
Briefing about a number of specific measures that the group has undertaken, Chandrasekaran said the group has assisted in enabling travel back home of employees and their families in transit in the UAE through Air India.
The group has also facilitated in enabling Saudi Arabia visa through Indian Embassy for employees in Qatar, while also supporting the movement of employees from Doha to Riyadh through land border crossing.
He urged the executives to be prepared for the post-recovery scenario once the conflict is over.
“You must be in a state of readiness — be agile; do not lose momentum,” Chandrasekaran told the executives.