TOKYO -- Tata Group, India's biggest conglomerate by revenue, is stuck in the doldrums. Its flagship car and steel businesses, which made Tata famous around the world thanks to high-profile overseas acquisitions, have become a drag on the group over the past two years.
Of the group's main operations, the only one that is growing steadily is Tata Consultancy Service's IT business. Overall, net profit from the three key businesses has fallen by more than half in the two years through March 2020 to 216.6 billion rupees ($3 billion).
For the April to June quarter, they racked up a combined net loss of 58.4 billion rupees, a reversal from a 51.5 billion-rupee net profit for the same period a year ago. The novel coronavirus, which is still spreading rapidly in India, is expected to continue weighing on the group's performance through the current fiscal year.
The total market capitalization of Tata Motors, Tata Steel and TCS has fallen to about 70% that of rival conglomerate Reliance Industries, which is controlled by Mukesh Ambani, India's richest man. The gap reflects the rise in Reliance's market valuation, which has been helped by rapid growth in the group's telecoms and retail businesses in recent years.
