NEW DELHI: Tata Sons chairman N Chandrasekaran Tuesday said investments in semiconductors and electronics are important for India, businesses and the future, although they may not generate the numbers in two or three years.At a time when the salt-to-software conglomerate’s investments in some of these businesses have come under scrutiny, Chandra compared the foray into chips and electronics with the group’s bet on steel and hydel power in the early 1900s.
“…many decisions have been taken by various chairmen in the group, which have all proved to be right in the long-term. Sometimes if things go wrong, you course correct. Directionally you design it on the belief it is needed for India, it is needed for mankind, and for enterprises, you will get it right. It doesn’t mean that everything will be a smooth ride,” he said at an event organised by Bloomberg.He said that everyone recognises that chips are the future and the decisions were financially prudent. “So, whether we will get it right and meet the numbers in two years or three years, is not the point. The point is chips are fundamentally going to be required… you can’t be reckless and say I will put a two nanometre chip, it’s just not going to work. So, we also need to see where the demand is… It’s not that you are going to have a very clean spreadsheet in this uncertain world, but a lot of things are certain. Direction is certain, the need is certain, the ability to execute is certain and the only thing is how you ramp up, how fast you ramp up…”The comments come amid an intense boardroom battle, pitting Chandra and other board members against Tata Trusts chief Noel Tata, who had questioned the losses incurred in businesses, such as aviation and semiconductors, sectors where govt attention is also focused.The Tata Sons boss, who is now in contention for a third term starting Feb, said the group is designed for resilience. “Some resilience has been built into our businesses because it really surprises me how well we have done as a group with so many disruptions that we had. We had an air crash, we had a cyberattack (at JLR), we had supply disruptions. Still as a group, we will deliver double-digit growth and margins are holding up. We are paying more attention. I send the message across the group: We have to think what is resilience for each of our businesses.”At the same time, asked about the big concerns, he said that war was a major worry, while in the short-term technology, if it lands in the hands of bad actors, and the impact on labour restructuring were in focus.
