India's Tata calls for belt tightening: report

The head of India's giant Tata conglomerate has urged group companies to revise their future projections and cut costs drastically because of global financial turmoil, a report said Tuesday.

"All our companies will need to review and moderate their earlier future projections," Tata Group chairman Ratan Tata told staff in an internal New Year message, according to the Times of India.

"Expansion schemes will need to be in sync with the current realities," the 74-year-old, who stands down this year, added.

Tata, who will be succeeded by company director Cyrus Mistry, issued a similar warning to employees in early 2009, as India braced for the fall-out from the 2008 financial crisis.

A Tata Group spokeswoman declined to comment on the chairman's email when contacted by AFP.

The Times of India said Tata was still upbeat about the prospects in 2012 for group companies, which include vehicle maker Tata Motors, software outsourcer Tata Consultancy Services (TCS) and steel giant Tata Steel.

Despite calling for cost-cuts to boost profit margins, he urged employees against being totally risk averse and losing out on new business opportunities.

Flagship Tata companies have been hit by the global downturn, with Tata Motors, TCS and Tata Steel all posting lower-than-expected profits to the end of September, hurt by rising input costs, weakening demand from Europe and a declining rupee.

AFP