Tata Group chairman Ratan Tata has asked CEOs and Managing Directors of 98 group companies to tighten belts, which could include putting off acquisitions and slowing capacity expansions, in view of the current financial crisis across the globe.
When contacted a Tata Sons spokesperson said: "The senior managements of the Tata Group companies have been advised to be sensitive and conscious of the difficult financial circumstances existing today and have been requested to be proactive to focus on cash flows and conserve expenditure wherever prudently possible."
The Tatas are gearing themselves up to face the situation. They are being proactive in managing their companies and not letting the circumstances lead them, the spokesperson added.
In a letter to the CEOs and MDs, Ratan Tata, who is also the chairman of India's Investment Commission and a member of the Prime Minister's Council on Trade and Industry, asked his top managers to review business strategies outlining a six-point action plan keeping in mind the worsening credit crisis.
The leader of the over 62 billion dollar group has asked his top honchos to focus on conserving cash and put off expansion through the inorganic route unless the acquisitions were strategic in nature.