The Tata Group companies will have to review and moderate their future projections in light of the slowdown in the world and India in particular, Ratan Tata, chairman, has said.
The group, however, must not be so ‘risk averse’ that it loses out on interesting opportunities that may present themselves in various geographies, the doyen remarked in a personal letter to employees thanking them for their services.
DNA has reviewed the letter dated December 31, 2011.
Troubled times will continue in 2012, Tata said, but opportunities will present themselves.
“I believe that the United States will see a slow recovery. The recovery in western Europe and the United Kingdom will probably be slower. Asia in general, on the other hand, and certain countries in Africa will present interesting, and in some cases, attractive, opportunities for us,” Tata said.
According to him, India itself could see a dramatic recovery if inflation remains in check and if the availability of credit and enhanced money supply is re-infused into the system.
During 2011, Tata said, the group’s revenues rose to $83 billion (Rs442,473 crore), driven by robust domestic demand in the first half and bolstered by sales growth in TCS and Jaguar Land Rover.
“Unfortunately, the drop in demand for steel in western Europe has continued to be a major depressing factor in the performance of Tata Steel Europe,” he said.
On the 2G scam, Tata said: “As I had assured you, the investigative agencies have stated that they have found no evidence of the Tata Group’s involvement in the wrongdoings, or conspiratorial action under investigation. I am proud to say that once again the bonafides, ethics and values of the Tata Group have remained intact.”
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