Tata Sons, the holding company of the Tata Group, announced its investment strategy for FY24, focusing on strengthening both new and existing businesses. In its annual review, the company outlined its plan to invest approximately Rs 10,000 crore across its subsidiaries and associates to fuel growth, reduce debt, and capitalize on key global trends like energy transition, digital transformation, and supply chain resilience.
Key Investment Sectors
Tata Sons has made significant investment in sectors that are poised to benefit from emerging global trends, particularly in renewable energy and digitalization. Among the key recipients of these investments are Tata Projects, Tata Autocomp Systems, Tata Electronics, and Agratas Energy Storage. The company is also boosting its presence in real estate, financial services, and telecommunications through subsidiaries like Tata Realty, Tata Capital, and Panatone Finvest.
In addition to these investments, Tata Sons has also increased its support for joint ventures such as Tata AIA Life Insurance and Tata Play, further strengthening its diversified portfolio.
Growth in Equity Shares
As of March 2024, Tata Sons’ total investment in unlisted equity shares of subsidiaries, associates, and joint ventures saw a 16% rise, reaching Rs 70,732.5 crore. Despite a 31.61% dip in revenue from operations (down to Rs 23,856 crore compared to Rs 34,887 crore in March 2023), the company’s total revenue climbed to Rs 43,893 crore by March 2024, an increase from Rs 35,058 crore in the same period last year.
Expansion in Semiconductor Sector
Tata Electronics, a key player in India’s smartphone manufacturing, is leading the charge in semiconductor production. The company is developing the nation’s first semiconductor fabrication plant in Gujarat, along with a semiconductor assembly and testing facility in Assam. Additionally, Agratas Energy Storage is ramping up its efforts to support the automotive sector’s shift towards renewable energy. The company plans to build a 40 GWh gigafactory in the UK and a 20 GWh plant in Sanand, India.
Tata Digital and Air India
Tata Digital, which operates the Tata Neu super app along with platforms like bigbasket, Tata 1mg, and Croma, reported a loss of Rs 1,200 crore on revenue of Rs 420 crore for FY24. Meanwhile, Air India, which is slated to merge with Vistara by November, posted a loss of Rs 4,444 crore. Tata Electronics also recorded a loss of Rs 1,022 crore during the fiscal year.
Despite these financial setbacks in certain ventures, Tata Sons remains committed to its long-term growth strategy, leveraging its diversified business portfolio to stay ahead in key sectors.
