Covid impact: Tata’s top deck to take up to 20% pay cut for the first time in group’s history

Sunday, 24 May 2020, 21:55:53
Mumbai: For the first time in the Tata Group’s history, the chairman of Tata Sons and CEOs of all operating companies will take an estimated 20% cut in compensation as the conglomerate initiates cost-cutting measures. The move is aimed at leading by example, motivating employees and organisations and ensuring business viability, insiders said.TCS, the group’s flagship and its most profitable company, was the first to announce a cut for CEO Rajesh Gopinathan. Indian Hotels has already said its senior leadership will “contribute a percentage of their salary this quarter to help with the survival phase of the company”.CEOs and MDs of Tata Steel, Tata Motors, Tata Power, Trent, Tata International, Tata Capital and Voltas, among others, will have their compensation reduced, executives said. Top officials close to the development said the cut would primarily be in current year bonuses.“These are times never before experienced in the history of our group and it calls for some tough measures to protect businesses,” said a top group CEO seeking anonymity. “We will do all that it takes to ensure right leadership with empathy.
— Economic Times India

Tata Motors’ JLR seeks Covid-19 support package from UK govt: Report

Sunday, 24 May 2020, 12:13:00
The UK’s Treasury department plans to set up a bad bank or asset resolution fund to hold stakes in companies that it may end up part-owning
— Business Standard

Major automakers see demand for personal cars rising

Sunday, 24 May 2020, 08:11:18
NEW DELHI: Automakers like Maruti Suzuki, Honda, Toyota and Tata Motors expect demand for personal vehicles to go up in the country as social distancing and fear associated with COVID-19 veer people away from public transport.The country’s largest carmaker Maruti Suzuki India (MSI) expects demand to shift towards lower priced cars in the post-lockdown scenario.”People will prefer personal vehicles over public transport and it comes out from different consumer surveys which we have conducted,” MSI Executive Director, Marketing and Sales, Shashank Srivastava told PTI.With economic activity slowing down, impacting buying power of consumers, demand will shift towards lower priced or smaller vehicles in personal mobility space, he added.”So the shift is expected towards smaller cars and first-time buyers.We are already witnessing this trend in around 1,800 dealerships which we have been able to re-open in the past few days,” Srivastava said.Previous trends have also shown that consumers gravitate towards established brands during stress periods, he noted.
— Economic Times India

A third of NSE manufacturing companies back at work

Saturday, 23 May 2020, 01:13:52
MUMBAI: About a third of non-service, manufacturing companies listed on the NSE have resumed operations partially or fully since mid-April, but demand is weak and disruptions continue to plague operations.Data collated from filings by companies listed on the NSE show that 410 out of 1,300 non-service companies such as ITC, Maruti Suzuki, Hero MotoCorp, Asian Paints, Tata Motors, Ashok Leyland, Whirlpool India, Bosch, Welspun and Tata Chemicals have resumed operations. Most cement, tyre, chemicals and pharmaceutical companies also resumed business partially between April 20 and May 22. The Centre had allowed businesses to restart operations gradually, by partially lifting restrictions from April 20. Movement of goods traffic had also been eased. Corporate executives said their teams were monitoring market demand as they learn to live with the new normal. “From the lessons learnt so far, we see an opportunity to improve our operating capabilities and review our growth strategy,” said a spokesperson for Tata Chemicals. “We were able to ensure uninterrupted despatch of products to the markets through railways.”Cigarettes-to-hotels-to-FMCG major ITC became the latest large company to announce restart of factories making non-essentials, with limited workforce.Pickup in economic activityA few indicators suggest a pickup in economic activity since the lows of mid-April though a full-fledged recovery is still a long way off.
— Economic Times India

Trending stocks: Tata Motors shares fall nearly 1%

Friday, 22 May 2020, 04:23:27
A total of 286,641 shares changed hands on the counter till 09:54AM (IST).
— Economic Times India