N Chandrasekaran, who is driving transformation in 154-year-old Tata group, wants to tap the rising opportunities in the midst of global transitions towards artificial intelligence(AI)/machine learning (ML), sustainability and diversified supply chains. In his new year message to the Tata employees, he said the global growth would dip to the lowest in 2023 since the millennium began. But India's rising share of global manufacturing will prop up short-term output drag, he said.
"In each of our segments, we are continuing to make progress and raising the bar, be it in terms of performance, customer experience, quality, sustainability or innovation," Chandrasekaran said in the letter. However, he alerted the employees the global environment has several risk factors, including the energy crisis in Europe, the battle to contain inflation to avoid recession, and ongoing geopolitical conflicts.
The Tata group companies are investing heavily in technologies -- including data analytics, IoT, AI and ML -- to empower their businesses to grab the opportunities in emerging areas. Electric mobility, electronics and renewable energy are some of the key areas where Chandrasekaran wants the companies to focus.
The group wants to bring down the carbon emission to net zero by 2045. "On sustainability, we have devised a group-wide project — "Aalingana" (Embrace). Our approach encompasses three interconnected pillars: reducing emissions to reach net zero by 2045; pioneering circular economies through sharing, reusing and recycling; and preserving and restoring nature and biodiversity," he said.
The Tata group has launched new initiatives to participate in global supply chains with the manufacturing of precision components. It has opened a factory in Hosur, Tamil Nadu, to manufacturer components for iPhone. The group also intends to manufacture semiconductor in the country.
Chandrasekaran noted the acquisition of Air India, the launch of Tata Neu, and the sale of 500,000 cars within a year, including 10% Tata EV, as the major achievements in 2022.
"Next year, we are likely to see inflation gradually moderate. India is well-positioned, and we will continue to be the fastest growing major economy, supported by increasing consumption, consumer confidence and investment," he said in the message. The Tata group will need to keep a careful watch on commodity price rises, in particular, he cautioned.