New Delhi: Tata Sons Chairman N Chandrasekaran has asked more than 30 executives and managing directors of group companies to prepare for a tougher business environment, as the war in West Asia disrupts supply chains, sources said.At a review meeting on the aftermath of the war on Thursday, Chandrasekaran told senior executives that more than 10,000 Tata employees are stationed in the region, including employees of Voltas, TCS, Indian Hotels and Titan (including Damas), and outlined steps to facilitate their return, according to a person with direct knowledge.
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The common theme that emerged during the assessment is that supply chain disruptions and rising commodity prices will impact demand, while leading to higher operating costs, resulting in margin pressure, the sources said.
For many companies, this means that production yield is likely to fall short of capacity.“The Chairman advised to prepare for a tougher business environment characterized by slowing demand, project delays, driven by supply chain disruptions and increasing costs due to oil prices, shortages, currency movements, logistics costs, among others,” the source said.Chandrasekaran recommended that measures should focus on preserving cash and managing it carefully and wisely.
He also advised carefully choosing when to start projects and “revisiting timelines if necessary.” The group’s senior executives were also briefed on the need to enhance cybersecurity readiness and network resilience, and run cost optimization programs with clear objectives. He also stressed the need to “pay attention to employees, including temporary employees.”“Furthermore, we need to immediately address issues related to anxiety and stress among our employees and their families in the area.” Chandrasekaran said the group helped enable the repatriation of employees and their families while in transit in the UAE via Air India.He urged executives to prepare for a post-recovery scenario once the conflict ends. Chandrasekaran is understood to have told senior executives: “You have to be prepared – be agile, and not lose momentum.”