Tata Sons not seeking to monetize investments; has enough cash flow

Tata Sons Chairman N Chandrasekaran recently stated that the conglomerate-holding company is in a strong financial position with adequate cash flow in order to support the group companies and the growth initiatives. The re-assurance comes after a board meeting of the holding firm on Friday (June 5). The chairman added that Tata Sons is not looking to monetise its investment for raising capital.

This announcement comes at a time when businesses and markets, including the Tata group companies, are battling the impact of the COVID-19 crisis. In the board meeting, Tata Sons discussed the company’s situation post the COVID-19 pandemic. Tata Sons seeks the current crisis as an opportunity. An official who attended the meeting was quoted as saying that people will migrate to brands which are trustworthy amid the COVID-19 crisis, and Tata Sons will tap into this an an opportunity.

Tata Motors, the $110-billion salt-to-software Tata group’s flagship, is also struggling with varioys headwinds in the domestic market due to the crisis. Jaguar Land Rover Automotive, which is the company’s UK subsidiary, is struggling to emerge from a market collapse in car sales.

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Even as the company’s factories have restarted operations, the demand outlook for the luxury vehicles amid a global recession remains dicey. The group’s steel business in Europe has also been under pressure due to COVID-19. N Chandrasekaran added that the group is focused on navigating the current situation and profitable growth. He assured that the group has adequate cash flow and will not seek to monetize investments in this situation.