In a changing and volatile world business environment, Tata Group companies need to ensure sustainable profitable growth and develop agile businesses, which would help achieve the Group’s Vision 2025 according to Cyrus Mistry, Chairman, Tata Sons.
Addressing the Group’s leadership and management at the Annual Group Leadership Conference (AGLC), Mr. Mistry said, “sustainable profitable growth is the key building block for long term stakeholder value creation.”
Sharing the Tata Group’s financial performance in 2014-15, Mr. Mistry, in a statement said revenues had grown to $108.78 billion ($103.27 billion) of which international revenues constituted 68 per cent. The group invested about $10 billion worldwide during the year and closed the year with a market capitalisation of $134 billion.
He outlined critical enablers for sustainable profitable growth to help achieve the Group’s Vision 2025, including developing unique consumer insights, diversification of profit pools, creation of IP rights, deployment of robust risk management processes, creation of financial flexibility to seize opportunities and minimising impact on the environment.
Mr. Mistry highlighted the opportunities across the globe and those presented by a rapidly growing Indian market, whose relative importance in the global economy would substantially increase by 2030. In order to steer through this rapid change, the Chairman struck a note of caution on the impact of global uncertainties on market movements through the year.
He asked Tata companies to build strategic and organisational agility stressing on the importance of ‘open strategy processes’ and the need for ‘a sense of urgency’ to identify new opportunities in the face of discontinuity. Besides, he also stressed the importance of ‘entrepreneurial people’ and ‘leadership that fosters experimentation and accepts risks in the pursuit of new capabilities and nextgen businesses.’
