Tata tightens belt, puts companies on diet

The $62.5 billion Tata Group, which made headlines for its big ticket mergers and acquisitions in the past two years, will now "put on hold any plans for acquisitions unless considered strategically critical", said an email from Ratan Tata to the top management of the group's 98 companies and its elite decision making body, the Group Corporate Centre.

In this November 6 email, Tata has also directed managing directors and chief executive officers of all companies to "expeditiously finalise pending loan and funding agreements, even if they involve accepting higher interest rates", while predicting a tough 12 months ahead.

"Some of our companies with substantial foreign operations or those which have made substantial acquisitions are already facing major problems in raising capital and establishing lines of credit for their operations," the email stated.

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