Privatization and Disinvestment : News & Discussions
- Thread starter Ashwin
- Start date
If the House of Tatas don't get their act together soon , there's a very strong likelihood that they'd resemble the future of their co religionists in India in the near future.Tata everywhere
The group's finances & balance sheets are over leveraged & instead of investing in the future they're targeting highly competitive sectors like aviation , automobiles or cyclical commodity products like steel .
My friend who is in stocks says this , that most of Tata entities are over valued and not good for investment.
But for now , if these sales mean that GoI can reduce their fiscal defecit, it would be a good news in interim
Bharat Petroleum and Pawan Hans are also in advanced stages
You can safely blame Ratan Tata & his ego for it . They over bid for Corus , then stuck around with Land Rover & Jaguar more than was necessary . Ditto for Nano which was a huge tragedy for it was definitely a car with a future in a market like India . These were the reasons why Cyrus Mistry was unceremoniously ousted when he tried to exit these ventures .
Now in an another vain move he's persuaded the Tata Group Management to acquire Air India that too at a time like this.
From the GoI's perspective it's good . They've rid themselves of an unprofitable venture which was also a huge cash guzzler. From the Tata Group's PoV it's a disaster in the making as they lack the nimble culture the management that such a dynamic industry needs .
Historically too , in the B2C segment which calls for extensive customer interface the Tata Group has been found wanting . There are very few success stories in their group portfolio of such examples & OTOH , plenty of failures.
That's some time away in future. First Govt owned pvt Bank IDBI. Let's see how Govt stake sell goes there.
