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Tata Sons is set to inject ₹30,000 crore (approximately $3.5 billion) into its high-growth and strategically critical ventures, including Tata Digital, Tata Electronics, Air India, and its defence and battery businesses. The infusion, approved at a recent board meeting, will be in the form of equity capital.
This move marks another major milestone in Tata Group’s transformation strategy, as it continues to build future-ready businesses across digital, aviation, electronics, and national security sectors. “These ventures are now at an execution stage where scale and profitability become the next focus,” a senior executive told The Economic Times.
The group is also expected to soon announce a new CEO for Tata Digital following the departure of Naveen Tahilyani, who stepped down less than a year into the role. Tata Digital and Tata Electronics have already emerged among the conglomerate’s top 10 businesses by size, and the group now aims to bring them into its top five revenue earners by FY27.
The defence business has been reaffirmed as a core strategic area, with additional capital allocations planned. Tata Sons has previously committed over $120 billion to new ventures in recent years.
Chairman N Chandrasekaran, who has led Tata Sons since 2017 and was reappointed in 2022, is said to be closely tracking progress across new ventures. He recently resigned from the board of Tata Chemicals to sharpen focus on these growth areas.
The investment comes amid mixed financials for the group in FY25. Revenue growth slowed to 4.9%, and net profit rose 10.7%, both lower than the previous year. Market capitalisation also declined 8% after a 45% surge in FY24. Nevertheless, over half of Tata Group’s companies reported double-digit revenue growth, with TCS continuing to lead as the top profit contributor.
