Mumbai: RS 18,000 Crore’s offer where Tata Sons Won Air India is just the beginning of expenses for flights.
It must allocate more resources to maintain flight even because it makes ambitious movements in the manufacturing and health care sector Hi-tech digital.
Even though the traditional business of the company does not require capital, except for a few, the balance sheets are regulated to increasingly reflect investment in the business that arises because it is seen to take advantage of growth opportunities and aim to make at least one of their money behavior machines like TCS.
The Software Service Department, which was separated as a separate entity in Fiscal 2005, contributed the highest (more than 85%) to Sons revenue.
However, money will be a problem with Tata Sons to finance acquisitions and invest in business because it enjoys the current steel level, consistent performance of TCS and impressive market capitalization growth of companies operating.
The market value of its investment is more than RS 12 lakh Crore as against the debt of 25,396 crore, placing the Sons Tata in a comfortable position.
It also allows it to increase capital by monetizing its investment, something that has been done whenever is needed.
“Telecom (Tata Teleservices) has become a theater in the Bouquet of Sons Tata for several years, but it has been addressed.
Shareholders have been raised in existing businesses (such as communication and Tata Chemical Communication) and Tata Sons are in a comfortable position now.
Besides That, the growth capital has been infused in the unit (such as Tata Power and Tata Motors) to resign from the balance sheet.
This will not be a problem to encourage more funds to other new flights and businesses to support and accelerate their growth, “said someone who is familiar With the Sons Tata Movement.
In recent months, the parent company from Tata Group has spent a large number to buy Bigbasket, 1mg and Tejas networks, among others, and plans to spend more to direct competition.
However, some Tata Sons trackers have reservations and feel the flight, known as the capital-guzzling and effort that loses money, can attract the conglomerate to the bottom of the software down.
Internally, Bombay House, Tata Group Headquarters in Mumbai, estimates that businesses will not benefit for five years to 2025, when global passenger traffic is expected to return to the pre-covid level.
Airlines Startups with Tata Sons – AirAsia India and Vistara -in who have invested more than Rs 6,000 Crore Since the start of the operation, has lost more than Rs 9,000 Crore to date.
The flight business has been injured by high operational costs and bribery scandals in AirAsia India, including factors.
The rear story of Indian water is also not in support of Tata Sons – operators have not been profitable for the past 14 years.
While Tata Sons may not place expansion capital to AirAsia India because Malaysian partners have been in the mode of detachment from low-cost operators, will use additional funds to Vistara’s full service player, which has Singapore Airlines as a promoter.
This might also have to spend the equivalent of an Indian air offer to restructure the operator, which will be the second largest purchase under the Chairperson of Tata Sons N Chandrasekara after Bhushan Steel.
However, industrial people show, “Lean cost structure is the key to successful scripts in flights.”
High in e-play, tatas need to refuel the flight business
