Tata Motors’ chief, Ratan Tata has issued a six-point directive to his group of companies to deal with the ongoing financial crisis.
Among other things, he has asked the Chief Executives of his 96 group of companies to defer acquisition plans unless they are strategically motivated.
The companies have also been asked to defer capital expenditure and capacity expansion unless required.
The companies have also been asked to conserve cash as much as possible and restructure the internal cost framework.
The directive signals a shift in the aggressive business policy of the Tatas.
In the recent past, Tata Steel’s acquisition of steel giant Corus and Tata Motors’ takeover of Jaguar Land Rover had symbolised India’s economic power. The recent move is sure to dampen spirits.
On Monday, Tata Motors shut its Lucknow plant for six days and has decided to shut down its Pune plant from November 21 to November 26.
Workers are being asked to go on a three-day forced leave and three-day leave on half-pay.
It will be a six-day forced leave for employees. Additionally, they have been asked to write and submit a leave application for the six days.
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