Big changes ahead for Tata group in next decade: former chairman

The face of Indian conglomerate Tata will change in the next 10 years as it adopts new technologies and responds to the needs of a fast-growing nation, former chairman Ratan Tata said in a CNBC TV18 interview on Wednesday.

Hinting at consolidation and possible divestments of certain businesses that once defined the group, Tata said the conglomerate may look very different in the next decade, although the 150-year-old group will always strive to retain its culture.

“There will be companies that were not there earlier and companies that were there, not there 10 years from now, because they may not be relevant or they may be sold off or transferred to other companies,” said Tata, who is chairman of the trusts that control two-thirds of holding company Tata Sons.

On Wednesday, one of the conglomerate’s oldest companies, Tata Steel, and German rival Thyssenkrupp agreed to merge their European steel assets, creating the continent’s No.2 steelmaker.

It is important to retain the ethical fabric of the group and its current chairman N. Chandrasekaran is the “right person” to steer the group in the right direction without losing its historical culture, Tata said.

Chandra, as the current chairman is commonly called, earlier headed the group’s most profitable company, known as Tata Consultancy Services. He was named head of Tata Sons, the holding company, in January, three months after the surprise ouster of former chairman Cyrus Mistry.

Mistry was fired after differences arose between him and Tata. Mistry had accused Ratan Tata and his associates in Tata Trusts of interference in the running of the various companies of the Tata group. Tata Sons, on the other hand, accused Mistry of failing to turn around ailing companies in the group after almost four years in charge.

Tata said he is working toward the transformation of the Tata trusts to address the needs of India, which requires technology, automation, healthcare and nutrition.

Tata, 79, said he will continue to engage with start-ups and look for opportunities in younger companies backed by the vision and passion of their promoters.

Tata personally has investments in some start-ups such as mobile wallet Paytm.