Tata to fuel new ventures engine with ₹30,000 crore more, to hire new digital CEO soon
Announcement of New Tata Digital CEO Soon
ADVERTISEMENT
ADVERTISEMENT
How It's Faring
ADVERTISEMENT
Mumbai: Tata Sons is injecting fresh capital of ₹30,000 crore ($3.5 billion) into its emerging ventures, including Tata Digital Tata Electronics and Air India , as well as the defence and battery units. The investment will be through equity infusion, said people familiar with the matter.The defence business has recently been reaffirmed as a strategic priority, according to officials. The Tata Sons board approved the latest allocation at a meeting held on Thursday, said the people cited. This funding will be in addition to the $120 billion committed to new businesses in recent years."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," said a group executive.'A sizeable commitment has already been made by Tata Sons. Now, all further investments will be done on a priority basis and new businesses will have to earn the right to seek such investments,' the executive said.These businesses are big focus areas and Tata Sons is of the view that their gestation period is over, and it's time for them to prioritise execution and deliver profitable growth.It's seen as a strategic effort to maintain the group's long-term competitive edge in a rapidly changing global business landscape, amid disruptions driven by artificial intelligence (AI) and other emerging technologies.Tata Electronics and Tata Digital already figure in the top 10 group businesses.'The goal for the new businesses is to rank among the top five group companies by revenue and attain profitability by FY27. Group chairman (N Chandrasekaran) is now keeping close track of the progress of the new businesses,' an executive said.The holding company will also soon announce a new chief executive for Tata Digital, which has faced challenges, including the recent exit of Naveen Tahilyani as CEO within a year of taking the top job.In a move to sharpen his focus on these priorities, Chandrasekaran recently stepped down from the board of Tata Chemicals. Chandrasekaran, 62, took charge as Tata Sons chairman in February 2017 and got another five-year term at the helm in 2022.After strong gains during 2020-24, Tata Group companies hit speed breakers in FY25.Revenue growth slowed to 4.9%, down from 12% in FY24. Net profit rose 10.7%, a sharp slump from the 28% surge the year before. Operating margins held steady at 10%, compared with 11% in FY24.Some of the businesses have been cyclical, apart from the uncertain geopolitical situation and economic challenges impacting growth, said people with knowledge of the matter.While group debt declined 6% to Rs 3 lakh crore in FY25, over half the companies still posted double-digit topline growth, signalling underlying resilience. Tata Consultancy Services (TCS) remained the group profit engine. It contributed 51% of group net profit, though down from 54%.Despite operational stability, investor sentiment was less positive. The group lost nearly 8% of its market capitalisation in FY25, after a 45% gain in FY24.The latest infusion is being routed through equity since Tata Sons voluntarily surrendered its certificate of registration with the Reserve Bank of India (RBI) last year and repaid more than Rs 20,000 crore in debt to remain unlisted.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
30 minutes ago
- Time of India
Peak XV trims stake in Zinka Logistics in Rs 302 crore bulk deal; ADIA, MIT among buyers
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Bengaluru-based logistics tech company Zinka Logistics Solutions , popularly known as BlackBuck, witnessed a block deal on Tuesday. A group of marquee institutional investors picked up stakes, while existing investor Peak XV Partners pared down its holding. The total block deal value is around Rs 302 to data from the stock exchanges, nearly 59 lakh shares changed hands. Among the buyers were global institutional names such as Abu Dhabi Investment Authority (ADIA), ICICI Prudential Mutual Fund, and Massachusetts Institute of Technology (MIT).ADIA purchased 23,02,574 shares at a price of Rs 420 per share. ICICI Prudential Mutual Fund acquired 11,42,856 shares at the same price, while MIT picked up the largest chunk -- 24,65,945 shares -- at Rs 420 per the sell side, Peak XV Partners Investments VI offloaded 12,10,588 shares at a higher price of Rs 444.71 per share, likely booking gains on their earlier of the latest available data, promoters held 27.7% of Zinka, while the public held 72.3%. Foreign investors made up a large chunk of the public shareholding, with several high-profile names such as Tribe Capital, Sands Capital, Accel, and B Capital featuring on the largest public shareholder was Quickroutes International, holding over 9% stake. Among mutual funds, SBI Technology Opportunities Fund held 6.62%, while Bandhan Core Equity Fund and Invesco India Contra Fund held smaller Logistics is one of India's leading tech-driven logistics platforms specializing in full-truck load (FTL) freight. Founded in 2015, the company has transformed the traditional trucking ecosystem by digitizing operations for both fleet owners and its mobile and web-based solutions, Zinka connects truckers with businesses in real-time, offering seamless booking, GPS-based tracking, digital payments, and documentation. The platform serves a wide range of industries including FMCG, manufacturing, and e-commerce, providing reliable long-haul transportation across company also assists truckers with services like fuel cards, insurance, and toll management, aiming to improve their efficiency and reduce idle time.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The Print
40 minutes ago
- The Print
Elon Musk's Starlink to get licence to operate in India soon, says Jyotiraditya Scindia
'Currently, two companies—OneWeb and Reliance—have received licences for satellite connectivity. The process for Starlink is also nearly complete. The LOI has been issued. And I believe it (Starlink) will get the licence soon,' Scindia said. In an exclusive interview with ThePrint on Tuesday, Scindia said that the Department of Telecommunications (DoT) earlier issued a Letter of Intent (LOI) to Starlink. The final approvals are pending from the Indian National Space Promotion and Authorisation Centre (IN-SPACe). New Delhi: Elon Musk's satellite internet venture, Starlink, is 'almost licensed' to operate in India, Union Minister of Communications and Minister for Development of North Eastern Region Jyotiraditya Scindia has said. 'The next step involves securing approval from IN-SPACe. All three licence holders must undergo this process before beginning operations,' he added. In the meantime, Scindia said, OneWeb and Reliance received spectrum allocations on a 'minimal exploratory basis' to begin testing their services. Once licensed, Starlink will likely follow a similar path. 'After this, TRAI (Telecom Regulatory Authority of India) will provide policy norms for administrative spectrum allocation, which will govern commercial rollout,' Scindia said. The minister emphasised that satellite internet would be vital to bridging India's last-mile connectivity gap, particularly in remote areas, where laying fibre optic cables or installing towers remained unviable. 'In India, there are many regions where no telecom tower can reach and laying OFC is impossible. Satellite is the only option there,' Scindia said. 'It is not about platform competition; it is about giving consumers a choice.' 'As the minister of communications, it is my responsibility to provide a bouquet of services to consumers. The choice of which to use must lie with them,' he added. Also Read: Airtel and Jio are welcoming Starlink to India. Is it a bid to get on Trump's good side? BharatNet 2.0: Expanding ground connectivity Scindia said the Modi government's Rs 1.39 lakh crore BharatNet 2.0 programme, which aimed to connect 2.5 lakh village panchayats and an additional 3.8 lakh villages on demand, would complement the space-based rollout. Key upgrades in the new phase include a shift from a linear to a ring topology, network downtime, and ensuring service redundancy. The project includes a 10-year OPEX (operating expenses) component alongside capital expenditure to ensure long-term sustainability. 'We have moved away from just CAPEX-focused design. Under the ring topology, even if one connection fails, the network reroutes itself. And with OPEX, maintenance becomes the service provider's responsibility,' he explained. 'BharatNet will now connect not just rural India to the nation but also to the world.' Operation Sindoor & national security On matters of national security, Scindia referenced recent military actions in Jammu and Kashmir under Operation Sindoor, asserting the prerogative to give a firm response to threats. 'Those who thought of wiping off the 'sindoor' of our sisters and mothers have been, themselves, wiped out,' he said, underscoring the assertive posture taken by the Modi government. India, he further said, had never believed in initiating conflict. 'But if innocent citizens are targets, the response to a brick will be with a stone,' he stated. Also Read: Musk's 'small man' spat with Polish minister bares widening US-Europe rift over Russia-Ukraine war Shashi Tharoor & 'India First' Doctrine Asked about the criticism of MP Shashi Tharoor within the Congress for his participation in an all-party delegation representing India abroad, Scindia said everyone should view the role of the delegation through the lens of national unity. 'Every person on that delegation went as an Indian. Difficulties arise when the country is not the priority. For some elements, their interests come first. In such cases, neither you nor I need to say anything—the people of India already have,' he said. Revival of BSNL & 5G roll-out Scindia credited the turnaround of BSNL (Bharat Sanchar Nigam Limited) to the leadership of Prime Minister Modi, along with the hard work of the BSNL employees. According to Scindia, the installation of 93,000 4G towers, out of a target of 1,00,000, is already complete. Once stabilised, these towers, using the same software core, will be upgraded to 5 G. 'I take no personal credit. The Prime Minister showed the vision, and the BSNL family delivered,' he said. Meanwhile, as of 1 January this year, MTNL was fully merged into BSNL and will now function as a shell entity for debt resolution and asset management. 'Operationally, MTNL (Mahanagar Telephone Nigam Limited) is under BSNL. We will negotiate and settle its debt with banks,' he said. Spam calls, cybersecurity & consumer protection The Union minister also outlined ongoing efforts to curb cyber fraud, spam calls, and mobile misuse. Scindia highlighted the blocking of 1.3 crore spoof calls in a single day over the last few months, along with the deactivation of more than three crore fake mobile connections and 25–30 lakh WhatsApp-linked numbers suspected of misuse. He also reported the launch of a new telecom consumer portal and app to report stolen phones, SIM misuse, and cloned accounts. 'Our responsibility is to ensure both connectivity and safety. Technology must empower—not endanger—our citizens,' Scindia added. (Edited by Madhurita Goswami) Also Read: How should India respond to Trump tariff? Raghav Chadha has an idea involving Starlink
Time of India
41 minutes ago
- Time of India
Ola Electric block deal: Citigroup buys shares worth Rs 435 crore; Hyundai Motor, KIA sellers
Citigroup acquired over 8.61 crore shares in Ola Electric for Rs 435 crore as Hyundai and Kia exited. The block deal triggered a sharp 8% drop in share price amid poor earnings. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Citigroup bought over 8.61 crore shares worth Rs 435 crore in Ola Electric Mobility on Tuesday via a block deal in which Hyundai Motor Company and KIA Corporation were bought shares through its arm Citigroup Global Markets Mauritius Pvt Ltd at a price of Rs 50.55 apiece which was 6% lower from the Monday closing price of Rs Motor which held 2.47% stake representing over 10.88 crore shares in Ola Electric as on March 31, 2025 today sold its entire stake in the company at a price of Rs 552 crore. Meanwhile, KIA Corporation sold over 2.71 crore shares at a price of Rs 50.55 a piece at a total cost of Rs 137 block deal triggered a sell-off in Ola Electric shares which closed at Rs 49.33, down by Rs 4.36 or 8.12%.The stock has been under sustained selling pressure in recent months. Shares have declined 46% over the past six months, 11.4% in the last three months, and 4.1% in the past week, though they have risen 3.7% over the past sell-off comes on the heels of disappointing quarterly results. On Thursday, Ola Electric reported a consolidated net loss of Rs 870 crore for the quarter ended March 2025, widening from Rs 416 crore in the same period last year. Revenue from operations dropped sharply to Rs 611 crore, down from Rs 1,598 crore in the year-ago quarter, the company said in a regulatory the full financial year, the company posted a net loss of Rs 2,276 crore, compared with Rs 1,584 crore in FY24. Operating revenue declined to Rs 4,514 crore from Rs 5,010 crore a year the weak numbers, Ola Electric had reaffirmed its commitment to turning profitable. 'FY26 will be focused on scaling revenue and operating leverage as the company marches towards sustainable profitability,' it had Read: Tata Technologies block deal: TPG to sell 2.1% stake, floor price likely at Rs 744.5 per share: Report
