Cyrus Mistry wants Tata companies to focus on profitable growth, agility

MUMBAI: Tata Sons chairman Cyrus Pallonji Mistry has urged leaders of group firms to focus on sustaining profitable growth and developing agile businesses to succeed in a changing and volatile world business environment and achieve its Vision 2025.

Addressing Tata group’s annual group leadership conference (AGLC) on Wednesday, Mistry also said the conglomerate’s revenues grew 5.3 per cent in 2014-15 to $108.78 billion, or Rs 6,85,314 crore, with international business accounting for 68 per cent of it.

While detailing out the main factors that will push the group to achieve the group’s Vision 2025, which is a quarter of the world’s population experiencing the Tata commitment to improving the quality of life of communities and customers, Mistry asked group companies to create an omnichannel marketplace that will integrate store shopping and online buying. "Sustainable profitable growth is the key building block for long term stakeholder value creation," he said.

Mistry said for the group to sustain profitable growth and develop agile business amidst a changing and volatile world business environment, it should focus on developing unique consumer insights, diversification of profit pools, creation of intellectual property rights, deployment of robust risk management processes, creation of financial flexibility to seize opportunities, and minimising impact on the environment.

In FY15, Tata group invested $10 billion, or about Rs 63,000 crore, and its market capitalisation increased 17 per cent to $134 billion, or about Rs 8,44,200 crore.

Digital businesses were part of the conference and, according to a company statement, over 35 examples from across 19 Tata companies that are successfully harnessing digital capabilities in their strategies were showcased.

Aconsultant who works with the group said like all other brick and mortar companies, Tata group will have to move towards digital as a channel to reach consumers.

"The transition, however is not going to be easy. However, as the consumer gets comfortable, the company has no other choice," said the person who requested not to be named. According to the company statement, Mistry also highlighted opportunities across the world including those that are "presented by a rapidly growing Indian market whose relative importance in the global economy would substantially increase by 2030". He said Tata companies need to build strategic and organisational agility to steer through these changes.