Mumbai: Tata Group invested $9 billion in its businesses globally in 2015-16, even as its worldwide revenue fell marginally to $103 billion due to commodity market slowdown and volatile currencies among other reasons, the diversified conglomerate’s chief Cyrus Mistry said on Friday.
Addressing the Annual Group Leadership Conference (AGLC) of the steel-to-software conglomerate, Mystry also announced a new leadership competency model based on key competencies to develop and identify leaders within the group firms and outlined a new framework focussed on ‘happiness at work’.
The total investments by the over 100 group companies in the last three years totalled to over $28 billion, said Mistry, Chairman of the main holding company Tata Sons Ltd.
Addressing the top leadership and senior management personnel from various Tata group companies, Mistry said the conglomerate’s total revenues dropped 4.62 per cent to $103 billion in fiscal year 2015-16, from $108 billion in the previous financial year.
He attributed the marginal fall in revenue to global political uncertainties, a steep reduction in commodity prices, and volatility in currencies.
International revenues at around $70 billion constituted 69 per cent of the group’s revenues.
Sixteen companies in the group registered a turnover of over $500 million each, with ten of these registering a turnover of over $1 billion.
The market cap of Tata group’s 29 listed companies was down by 7.4 per cent to $116 billion as against 9.4 per cent correction in the stock market benchmark BSE Sensex.
In furtherance to a vision for 2025 announced at the AGLC, held every year on founder JRD Tata’s birth anniversary, Mistry also outlined a ‘Tata Quality of Life’ framework that will focus on ‘happiness at work’.
Speaking at the NCPA auditorium near its global headquarters ‘Bombay House’ here, Mistry further said the set of values that define the Tata Group have also been refreshed with the changing times to include the virtue of “pioneering”.
“This value has always been core to the Tata group’s approach to business and is reflected in many inspiring endeavours,” Mistry said.
Mistry said the pioneering innovation has led the group to nearly double the number of published patents in the last two years to 7,000 at the end of 2015, from 3500 at 2013-end.
In 2015, Tata companies filed 2,000 published patents in India and abroad, he said.
Mistry, who took over from Ratan Tata as head of the group in 2012, exhorted the leadership to work with the Tata values of pioneering, integrity, excellence, unity and responsibility for delivering sustainable and profitable growth.
In his address, Mistry emphasised, “Our people are at the heart of the group’s Vision 2025.”
Under the Vision 25, Mistry reiterated, Tata is aiming to touch a fourth of humanity with its products and services.
“25 per cent of the world’s population will experience the Tata commitment to improving the quality of life of customers and communities,” Mistry said, while adding that Tata will be amongst the 25 most admired corporate and employer brands globally by 2025.
This will also entail the combined market capitalisation of its listed companies — which stand at 29 at present — being among the 25 best globally.
The investment of over $28 billion over the past three years has helped develop many remarkable projects, including the Kalinganagar steel plant, the largest greenfield infrastructure project, which commenced commercial production on May 25.
Speaking about Tatas’ contribution to the society, Mistry said its employees devoted one million hours to voluntary causes during the fiscal 2015-16, making the Tata volunteering programme the largest in the world.
The Tata leadership and employees also paid their respects to Titan’s founder and first managing director Xerxes Desai, who passed away recently.