Ratan Tata warns his cos to moderate projections

The Indian economy may indeed be headed for a slowdown. That’s the message one got from Tata Group chairman Ratan Tata’s annual new year message to his employees, in which he expressed caution and asked all group companies to review and moderate future projections, reported CNBC TV18.

For the Tata Group, 2012 is a year of transition. But it’s not just about Cyrus Mistry taking over from Ratan Tata. It’s also about seizing the opportunities 2012 throws up. Ratan Tata said that while India has been fortunate in seeing continued economic growth and consumer demand, it has also fallen prey to an unprecedented rise in inflation, political conflicts, and policy uncertainties, all of which have led to overall growth taking a hit, CNBC TV18 reported.

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In his annual message Tata said “As we look ahead in 2012, the troubled times will most probably continue, but many opportunities will also present themselves. I believe that United States will see a slow recovery. The recovery in Western Europe and the United Kingdom will probably be slower.”

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More than half of the Tata Group’s revenues are linked to global markets.

“All our companies will need to review and moderate their earlier future projections. Expansion schemes will need to be in sync with the current realties. We must however not be so ’ risk averse’ that we lose out on the interesting opportunities that may prevent themselves in various geographics. To combat the pressures of higher input costs, each of our companies will need to rigorously pursue reduction in manufacturing and process costs of products with a view to build back margins,” CNBC TV18 quoted him Tata as saying.

In his address, he also gives his successor Cyrus Mistry a vote of confidence, saying, “I believe Cyrus embodies the attributes required to lead the Group in the years ahead.”

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Tata added, “I am pleased that in the 2G scam, as I had assured you, the investigative agencies have stated they have found no evidence of the Tata Group’s involvement in the wrongdoings, or conspiratorial action under investigation,” reported CNBC TV18.

2012 will see the Tata Group gear up to face a challenging environment, and keep growth momentum going, by implementing austerity measures, and hunting for new opportunities.