Tata Sons is set to invest Rs 30,000 crore ($3.5 billion) in a clutch of its high-potential businesses, including Tata Digital, Tata Electronics, Air India, defence, and battery units, as part of a renewed push to scale emerging ventures, Economic Times reported, citing people familiar with the matter.
The capital infusion, which will come through equity investments, was approved by the Tata Sons board at a meeting held on Thursday, the report said.
According to Economic Times, this round of funding is in addition to the group’s broader commitment of $120 billion towards new businesses in recent years. A senior group executive told the publication that the latest investment aims to “meet requirements at the execution level, necessary to scale the new businesses for their next phase of growth.”
The executive added, “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 defence business has also been reaffirmed as a strategic priority, Economic Times noted, signalling Tata Sons’ continued bet on sectors with long-term relevance amid global shifts in technology and security.
Group chairman N Chandrasekaran is said to be keeping close tabs on the progress of these ventures. The aim, according to the report, is for new businesses to break into the top five by revenue among Tata group companies and achieve profitability by FY27. Tata Electronics and Tata Digital already feature among the top 10 group entities.
In a sign of deepening oversight, Chandrasekaran recently stepped down from the board of Tata Chemicals to focus more sharply on high-growth priorities, Economic Times said. Chandrasekaran, who took over as Tata Sons chairman in February 2017, began a second five-year term in 2022.
Meanwhile, Tata Sons is also expected to soon announce a new CEO for Tata Digital, following the recent exit of Naveen Tahilyani, who stepped down within a year of taking the role. The platform has been navigating leadership and operational challenges even as it remains core to the group’s digital ambitions.
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