Tata Group's Rs 30,000 Cr Bet on Digital, Electronics & Air India Signals Next Growth Wave

Tata Sons has planned to invest ₹ 30,000 crore in its emerging businesses, including Tata Digital, Tata Electronics, and Air India, as well as the defence and battery units, via equity infusion. The investment was approved by the Tata Sons board in a meeting held last week, the Economic Times reported. 

“The capital infusion is considered part of the holding company’s plan to meet requirements at the execution level, necessary to scale the new businesses for their next phase of growth,” the Economic Times reported, citing a source. 

While Tata Sons chairman N Chandrasekaran has previously highlighted that the Tata Group is pinning its hope on the emerging ventures, investment in the defence business has recently gained more prominence for the salt-to-power conglomerate. The big bet on the emerging businesses is also due to the fact the conglomerate reportedly is of the view that the gestation period for these ventures is over, and it’s now time that they deliver profitable growth.

Also Read: TCS Splits Fast-Growing AI Business Unit Into Two Dedicated Verticals

A few weeks back, the Tata Group’s flagship company, Tata Consultancy Services (TCS) announced splitting its AI.Cloud business unit into two dedicated verticals to drive higher growth, PTI reported. 

Apart from the recent ₹ 30,000 crore investment, the Tata Group had earlier announced an outlay worth $18 billion in the emerging businesses, including electronics and semiconductors. Earlier this year at the NIT Trichy Global Alumni Meet Tata Sons chairman said the group is focused on transforming Air India into a world-class airline. The salt-to-power conglomerate had mentioned that it is eyeing to make Tata Electronics, Tata Digital and Air India amongst the list of its top 10 businesses.

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“My commitment is to take every effort to make Air India, an absolute top-class airline in the world. In terms of the hardware, the flight experience, customer experience, technology and in every which way,” N Chandrasekaran had said.