Tata group to have Four Big Focus Areas for 2022

Tata group to have Four Big Focus Areas for 2022

Indian Market
by 5paisa Research Team Last Updated: 2022-08-08T18:58:00+05:30

The Tata group has adopted a clear and new way of thinking about the future in the last few years and that in a way is captured in the annual letter to the employees of Tata group by the group chairman, N Chandrasekharan. While congratulating the team for navigating a tough year, he has reminded of the fresh challenges in the coming year.

The Tata group has been in the midst of a gradual transformation with a much greater emphasis on shareholder value creation on the strength of a robust transformation agenda. Their 3S strategy had helped the Tata group to become agile, simple and financially strong. Tatas are laying a lot of emphasis on reducing carbon footprint and focus on new tech.

In this light, Chandrasekharan highlighted that the Tata group had identified four big themes to focus on in the coming year 2022. The 4 themes will be Digital, New Energy, Supply Chain Resilience and Health. The group expects that some of its initiatives like 5G, Tata Neu and Tata Electronics would benefit from this focus; especially its big focus on semiconductors.

Tata group companies were among the major value creators during the year with most of the heavyweight stocks like TCS, Tata Motors, Tata Steel, Titan and Tata Consumer doing extremely well during the year. That was evident in Tata group becoming the most valuable business group in India by market cap, overtaking Reliance.

In terms of specifics, the Digital focus will predicate on 5G focus, overarching e-commerce platform/app for the group and a focus on new age technologies like artificial intelligence, machine learning and IOT. The Tata group will also figure in a big way in setting up a dedicated semiconductor manufacturing facility in the light of the current global shortage.

The biggest new energy focus will be in the electrical vehicles (EV) business. Tata Motors is planning to shift a big part of its auto portfolio to EVs in the coming years. Green energy will be another area of focus. What is important is that the four focus areas of the Tata group are in specific areas that are likely to be market cap accretive for the group as a whole.

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