The apprehension of recession in the world is increasing day by day, but the country’s largest industrial house Tata Group is moving towards record growth this time. The listed and unlisted companies of the group are growing at a rate of 20 per cent in this financial year. Tata Group has planned a huge investment of $ 90 billion in the next five years in its old and new business. The company’s new businesses include EVs, batteries, renewables, 5G, precision electronics and semiconductors. Tata Sons Chairman N Chandrasekaran says that soon the market cap of Tata Steel and Tata Motors will reach equal to the group’s IT company Tata Consultancy Services (TCS). That is, in the coming days, Mukesh Ambani’s company Reliance Industries may have to compete with three companies of Tata Group. Right now Reliance is the most valuable company in the country with a market cap of Rs 1,580,700.16 lakh crore.
Chandrasekaran said this in an exclusive interview with ET. He said that the Tata Group is often criticized for being heavily dependent on its IT company TCS. But soon this situation is going to change. “I am hopeful that soon Tata Steel and Tata Motors will be in a position to compete with TCS,” he said. TCS has a market cap of Rs 12.94 lakh crore and is the second most valuable company in the country after Reliance Industries. The market cap of Tata Steel is Rs 1.32 lakh crore and that of Tata Motors is Rs 1.60 lakh crore. Although the revenue of both these companies is more than TCS. Tata Motors’ revenue is Rs 3.01 lakh crore, Tata Steel’s revenue is Rs 2.45 lakh crore and TCS’s revenue is Rs 1.96 lakh crore.
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The Tata Sons chairman said that all group companies are registering strong growth and their annual growth is estimated to be around 20 per cent in 2022-23. It can be called very good for a big group like Tata. The combined profit and cash flow of the group is very strong. We are happy that the group has achieved its target in the traditional business. These companies will fund themselves from their internal resources. We have an investment plan of $90 billion in the next five years. The companies are investing $10 billion each in Tata Power and Tata Steel. Similarly, Tata Motors and Jaguar Land Rover will invest $25 billion in the next five years.
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Chandrasekaran said that a lot of investment would also be made in Air India. This will include all the airline companies of the group. The merger of Air Asia, Vistara, Air India Express and Air India is expected to be completed by March, 2024. The Tata Group is making every effort to turn around Air India. He also said that investment will also be made in new business. EV, Batteries, Renewables, 5G, Precision Electronics and Semiconductors. The future of the loss-making steel unit in Britain will also be decided in the coming days. He said that Tata Sons is only offering moral support in the matter of additional funds.
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