Air India needs lot of work, progress will be visible in 12-24 months: N Chandrasekaran
The company is fixing the airline in a “systematic way” and has allocated Rs 15,000 crore in terms of equity alone, Chandrasekaran stated.
- Jun 13, 2022,
- Updated Jun 13, 2022 11:05 AM IST
Tata Sons Chairman N Chandrasekaran has said that Air India, that the company recently acquired, requires a lot of work. He added that any visible progress is likely to be visible only in the next 12-24 months.
Chandrasekaran, in an interview with the Economic Times, said that he is directly spending a lot of time on the airline but there are a lot of issues that “need heavy lifting”. He added that a lot of work is required on IT systems, maintenance, processes, fleet, HR, training, network planning and ground handling.
The company is fixing the airline in a “systematic way” and has allocated Rs 15,000 crore in terms of equity alone, he stated. Air India is being reorganised through talent, training, and deployment of IT systems.
The Tata Sons Chairman said that they want to make the airline the flagship company and a financially viable one. Air India Express and AirAsia, the group’s low-cost airlines, will be merged. However, he declined to comment on Vistara, and said that no decision has been taken on whether the group wants a single airline or two.
ON TCS
Chandrasekaran also said in as many words that TCS is not the crown jewel of the company anymore. He said that the long time criticism that the group’s growth weighs heavily on TCS is not correct anymore, and that all companies now contribute significantly.
He said that TCS is a cash-generating business where Tata Sons has 73 per cent holding. But Tata Steel also produced a lot of cash and contributed significantly to the profits, said Chandrasekaran, adding that he hopes the same from Tata Motors. Tata Capital and Tata Consumer are doing well too, he said. The Tata Sons Chairman said that, however, it is unfair to compare a company with TCS.
Tata Motors is having a dream run, he said, with growth from 4.5 per cent market share to 14 per cent market share. They are also producing more likeable and stylish cars. He said that EVs have changed the way people look at the auto company, which, for him, is of much value. Financials will follow, he added.
Tata Power too will generate a lot of returns, he predicted. The company has huge expansion plans, he added. Chandrasekaran said that all of their businesses, including Tata Chemicals, Tata Power, Tata Consumer, Indian Hotels are “powerful growth companies”.
ON TATA NEU
Chandrasekaran said that the newly launched super app has a lot of work to do in the next 12-24 months. An app is in production and new categories are being worked on. The group aims to create a “best-in-class consumer platform”. Tata Neu is not capital constrained, he added, and no official valuation of the business has been done.
He said that the group is not in a hurry to bring in external investors. Chandrasekaran added that they might get a strategic partner or go for just a financial partner.
Also read: Air India hiring drive: Check out date, details for cabin crew walk-in interviews
Also read: Air India offers cash incentive, reduces eligibility age to encourage staff to voluntarily retire
Tata Sons Chairman N Chandrasekaran has said that Air India, that the company recently acquired, requires a lot of work. He added that any visible progress is likely to be visible only in the next 12-24 months.
Chandrasekaran, in an interview with the Economic Times, said that he is directly spending a lot of time on the airline but there are a lot of issues that “need heavy lifting”. He added that a lot of work is required on IT systems, maintenance, processes, fleet, HR, training, network planning and ground handling.
The company is fixing the airline in a “systematic way” and has allocated Rs 15,000 crore in terms of equity alone, he stated. Air India is being reorganised through talent, training, and deployment of IT systems.
The Tata Sons Chairman said that they want to make the airline the flagship company and a financially viable one. Air India Express and AirAsia, the group’s low-cost airlines, will be merged. However, he declined to comment on Vistara, and said that no decision has been taken on whether the group wants a single airline or two.
ON TCS
Chandrasekaran also said in as many words that TCS is not the crown jewel of the company anymore. He said that the long time criticism that the group’s growth weighs heavily on TCS is not correct anymore, and that all companies now contribute significantly.
He said that TCS is a cash-generating business where Tata Sons has 73 per cent holding. But Tata Steel also produced a lot of cash and contributed significantly to the profits, said Chandrasekaran, adding that he hopes the same from Tata Motors. Tata Capital and Tata Consumer are doing well too, he said. The Tata Sons Chairman said that, however, it is unfair to compare a company with TCS.
Tata Motors is having a dream run, he said, with growth from 4.5 per cent market share to 14 per cent market share. They are also producing more likeable and stylish cars. He said that EVs have changed the way people look at the auto company, which, for him, is of much value. Financials will follow, he added.
Tata Power too will generate a lot of returns, he predicted. The company has huge expansion plans, he added. Chandrasekaran said that all of their businesses, including Tata Chemicals, Tata Power, Tata Consumer, Indian Hotels are “powerful growth companies”.
ON TATA NEU
Chandrasekaran said that the newly launched super app has a lot of work to do in the next 12-24 months. An app is in production and new categories are being worked on. The group aims to create a “best-in-class consumer platform”. Tata Neu is not capital constrained, he added, and no official valuation of the business has been done.
He said that the group is not in a hurry to bring in external investors. Chandrasekaran added that they might get a strategic partner or go for just a financial partner.
Also read: Air India hiring drive: Check out date, details for cabin crew walk-in interviews
Also read: Air India offers cash incentive, reduces eligibility age to encourage staff to voluntarily retire