Tough conditions call for hard decisions on portfolio: Mistry

New Delhi, Sep 13 (PTI) Tata Group Chairman Cyrus Mistrytoday said "challenging situations" confronted by some of itsbusinesses require hard and bolder decisions on pruningportfolio even as he stressed that the conglomerate is open toacquisitions within and outside India, besides organic growth. Mistry, who took up the baton at salt-to-softwareconglomerate in December 2012 from his predecessor Ratan Tata,said he wanted the group firms to have speed and agility toadapt to turbulent environments even as he maintained that theexisting debt level is not a matter of concern. He further said ‘green shoots’ of a turnaround arevisible at Tata Motors and Tata Steel has potential to growsignificantly while several Tata firms are gaining traction intwo new markets of Iran and Myanmar. "It was clear to me relatively early that one needed toconfront the challenging situations facing some of ourbusinesses, and ultimately this would entail hard decisions onpruning the portfolio," he said in an interview to his group’sin-house magazine. Stating that there are no shortcuts, he said there wouldalways be external influencers and so-called experts, whomotivated by immediate transactional gains, would goad tochurn portfolio. "It is important that we develop our own prognosis basedon knowledge and context, keeping all stakeholders in mind. Weshould not be afraid of taking tough decisions for the rightreasons, with compassion," he said. He said some of the innovations are incremental and the’dare to try’ concept does make the Tatas bold. "We have to start taking bolder steps because true valuein today’s environment will not only be created fromincremental innovation, but the bolder and bigger strides thatwe take," he said. Mistry said each of the group companies is charting itsown strategy and growth story, with the focus on sustainableand profitable growth. On some group companies having taken on significant debt,he said: "This has to be seen in the context of businessgrowth, increasing cash from operations and capital projectsunder way which will lead to future growth. As the group hasbeen growing significantly in the past, the total capitalemployed has also grown. Proportionately, there has been anincrease in debt." MORE PTI ANZARD