Mumbai: Tata Group is looking to drastically shorten the number of companies in its portfolio and take hard-hitting calls on non-performing, debt-laden companies even as it makes every effort to be far more regimented in capital allocation in group firms, N. Chandrasekaran, executive chairman of Tata Sons, said in an interview.
“We would like to see ourselves as 5, 6, 7 groups as opposed to 110 companies. The more we see ourselves as 110 or 120 companies, nothing will be done,” he said in the interview to the financial daily.
To attain the objective, Tata Sons will see the sights all options from consolidation or a fundamental view, to falling the subsidiaries as it seeks to “create value”, said Chandrasekaran, who acquired the top job on 21 February after the holding company detached Cyrus P. Mistry as chairman of the group on 24 October.
Among other things, Tata Teleservices, the group’s telecom division that has been hemorrhaging, will be the apex in Chandrasekaran’s priority. “Tata Teleservices is in actually bad shape... There are important things but some are critical. Like Tata Teleservices. It needs imperative attention,” he said. If Tata Teleservices has to be revived and it has to stay in the game it would require a commitment of another Rs50,000 crore to Rs60,000 crore, he said in the ET interview.
“In an ideal world, our interest will be to get out of the wireless business. We have to see if we can bring these enterprises businesses together,” he said in the interview.
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