Against this backdrop of overlapping risks, Chandrasekaran defended Tata Group's long-term investment strategy, including its semiconductor manufacturing ambitions, while emphasising the need for financial discipline.
“We can’t be reckless,” he said, highlighting the importance of balancing strategic investments with financial prudence.
Balancing investments with financial discipline
Tata Group, which reported $185 billion in revenue last fiscal year, has committed to a $120 billion growth wager aimed at building future capabilities. However, the scale and long gestation periods of some investments have brought capital allocation into focus.
Tata Trusts, which owns about 66% of Tata Sons, has raised concerns over investment decisions and projects that could take longer to deliver returns.
Chandrasekaran acknowledged that businesses must evaluate financial viability even when operating in uncertain markets. He cautioned against relying entirely on conventional financial projections to assess investments in emerging industries.
“You need to feel the stones and cross the river. It is not that you are going to have a very clean spreadsheet in this uncertain world,” he said.
Semiconductor manufacturing
Tata's semiconductor programme illustrates the long-term nature of these investments. Tata Electronics is building a semiconductor fabrication facility in Dholera, Gujarat, while a separate assembly and testing facility is being developed in Jagiroad, Assam.
Chandrasekaran argued that the semiconductor push should not be judged solely on whether it meets financial targets within two to three years, given the strategic importance of chips to India's industrial and technological development.
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“Direction is certain, need is certain, ability to execute is certain,” he said, expressing confidence in India's talent pool, domestic market and ability to expand its role in the global semiconductor industry.
Supply chain resilience and technology risks
Chandrasekaran's comments also highlight the challenges businesses face from supply-chain disruptions, cyberattacks and geopolitical conflicts. He discussed the impact of technological change on employment, including the need to restructure labour markets in the near term, while noting that technology could deliver significant benefits over the medium to long term.
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