Ratan Tata's right-hand man makes big claim about company's future, says, 'however painful, these...'
He acknowledged that the steps might be difficult but were necessary for the company
The Tata group is undergoing several changes as it shifts focus to new-age businesses like semiconductors, electronics manufacturing, and renewable energy, according to Chairman N Chandrasekaran in an interview with the Financial Times (FT).
"We are preparing the group for the future," Chandrasekaran told FT. He acknowledged that the transitions, while difficult, are necessary.
As part of this shift, the $165 billion group is increasing its online offerings and integrating artificial intelligence into its internal processes.
One of the major changes is at Tata Steel, which will close its blast furnaces at the Port Talbot steelworks and cut 2,500 jobs in the UK. The company plans to invest £750 million (around Rs 8,250 crore) in the facility, with an additional £500 million (around Rs 5,502 crore) coming from the UK government to build a new electric arc furnace to replace the old coal-based ones. Despite heavy losses of £4-5 billion (around Rs 44,000-55,000 crore) since acquiring Corus Group in 2007, Tata remains focused on greener products.
Regarding Air India, Chandrasekaran said supply chain issues had delayed aircraft deliveries, but the airline's losses have reduced as of March 31, 2024. He expects the airline to become more competitive domestically within a year and internationally by 2026, once new Airbus A350s and Boeing 787s are delivered.