Synopsis
Tata Sons chairman Natarajan Chandrasekaran met over 30 group CEOs and managing directors to assess the impact of the West Asia war on businesses and plan measures to deal with it. More than 10,000 Tata Group employees are based in the affected region across companies such as Voltas, Tata Consultancy Services, Indian Hotels Company and Titan, including its West Asia jewellery brand Damas, the chairman noted.More than 10,000 Tata Group employees are based in the affected region across companies such as Voltas, Tata Consultancy Services, Indian Hotels Company and Titan, including its West Asia jewellery brand Damas, the chairman noted.
The group has initiated a series of measures to support its workforce, including facilitating the return of employees and their families stranded in the UAE via Air India, securing Saudi visas through the Indian embassy for staff in Qatar and enabling cross-border movement from Doha to Riyadh through land routes.
The concerns for the aviation arm include longer flight paths, rising aviation turbine fuel costs, and operational uncertainties.
Across businesses, the group flagged a broad-based impact from supply chain disruptions and rising commodity prices, which are expected to dampen demand while simultaneously increasing operating costs, thereby squeezing margins.
Manufacturing companies could see output fall below installed capacity due to shortages and delays, while infrastructure and project-led businesses may face timeline overruns and underutilisation of manpower. Companies with high exposure to oil-linked inputs are particularly vulnerable to cost escalations.
Chandrasekaran cautioned group CEOs to prepare for a more challenging business environment marked by slowing demand, project delays arising from supply constraints, and cost pressures driven by higher oil prices, currency volatility, and elevated logistics expenses.
He urged leadership teams to prioritise cash conservation, carefully calibrate the timing of new project starts, and accelerate cost optimisation programmes with defined targets. Strengthening cybersecurity preparedness and network resilience was also flagged as critical amid rising global uncertainties.
At the same time, the chairman emphasised the need to support employees-including temporary staff-by addressing anxiety and stress among those stationed in the conflict-hit region.
Even as the group braces for near-term disruptions, Chandrasekaran underscored the importance of staying agile and maintaining readiness to capitalise on opportunities once the situation stabilises.
