Dear Tata, It sounds strange to address a brand directly, but it is really just a name in which most of us are invested. Not financially as shareholders, although some of us also have Tata equity, but in many other ways as stakeholders, which you have in India for a full century or more before the announcement of the US Business Roundtable had shown its responsibility, had only one objective to enrich the owners of a business amongst many others. The letter was instigated by the Tiago, an electric vehicle (EV) offered by Tata Motors. 10 lakhs. If this launch crack opens up a huge market for EVs, enticing rivals to chase their lead on value-for-money and cruise along with cleaning up India’s power grid, then it should be an upfront expression of thanks. Believe it. As we’ve learned from the failure of the Nano, however, the success takes a feel for the pulse of the market revealed by an analysis of the household budget. The Nano needed enough engine power to sustain two-wheeled traffic, not least the promise of cabin comfort based on four wheels, let alone fame for its cheapness. This time, the pitch of your EV market is under your control, with a clear and effective roadmap led by Tata. With digital technology now driving the future of mobility, your special edge of in-house input diversity should get a chance to shine. Capability in mixed R&D talent – eg, from Jaguar, TCS and Tata Motors – partly the discussion about ‘core capability’ didn’t shake your confidence as a group, did it?
Over-dispersion in markets was identified as a major weakness of Tata’s, and one-way streamlining has gained momentum and clarity, with “simplify, synergy and scale” as the mantra of a structural shift, less so. The diversified but over-capitalized Adani has snatched pole position as India’s most valuable conglomerate by market capitalisation. To stay in this race, there is so much you have to do so fast that you must proceed with caution, lest the Tata merger spree ends up as a ledger job. A strategic shift to market-oriented skills at optimum cost. As reported, 29 listed firms will be halved, which will include several unlisted firms and subsidiaries. The synergies and cost savings are expected to unlock value. A simple dashboard to better allocation of capital can also help in extracting higher returns. To achieve its fitness goal, Tata Steel, for example, will roll out six business units and an associate firm to complete a snap-in or snuff-out drive that began in 2019. d smelled 116 small entities. Earlier this year, you took another step to strengthen consumer-oriented businesses. Whatever the numbers say, your stakeholders will expect the famous ‘Tata values’ to keep all group mergers orderly and free from the turmoil created by any change in autonomy across the empire. Each power rebalancing is an experiment in itself. And once your e-com ‘Super-App’ starts reaching customers online, your own desire to eat will only be further tested.
Remember, your success as a business conglomerate will also be judged by the ‘aerodynamicism’ you show in aviation, where Tata Air Carriers tolerates the reputation (if not the logo) of your group without hesitation. Proposals for a two-stage merger with a possible Air India union with Vistara to buy the combination of AirAsia India and Air India Express are up in the air for you and your partner Singapore Airlines. Here too, a mix of inputs can enrich your decisions.
Sincerely, just one more stakeholder.
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