Natarajan Chandrasekaran
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Tata group has a lot of people who serve the group for a very long time. So that's our strength. Our aim is to give a product which every Indian is proud of. Give a service which I don't want a second one which is better than anything else that exists. I think by 25 our renewable capacity will be higher than our coal capacity and by 27 28 probably our renewable capacity will double the coal capacity. So 65 70% will be renewable. I would only say that people should continue to be bold, they have to have discipline and it does take to build a good business, take time to build a good business.
Talent is a... we are predominantly an inbred company. I think Tata group has a lot of people who serve the group for a very long time, so that's our strength. But at the same time we need to inject talent and also train our people on new technologies because AI will be a disruptor. I think we can talk about AI for all day but it'll be a disruptor and it is real. It's going to change the productive equation by an order of magnitude. It has implications on jobs. It has got implications on skills that are required for the future. It has got a huge regulatory issue because already different governments have started reacting differently which we have got to take the lead to come out with some kind of a regulatory framework where there is not too much of a difference between because it's a global world as much as the geopolitics is making it out to be difficult but still we are a connected world so absolutely AI has lots of implications.
Once the bid process started, once we knew that government is going to divest 100%. And then the government was going to restructure the balance sheet. Then we felt comfortable because we knew there will be challenges and there are lots of challenges because we have to fix a lot of things. But the good thing is 1 billion people want Air India to succeed. Everyone in this country is rooting for Air India. You can't have a better tailwind than that. Okay. There is a mail every day. Why one mail? There are multiple mails every day. Somebody wanting to work for India. Somebody giving me advice. Somebody telling me that I had a great flight. I know the flight was bad but I can see the improvement in on-time arrival and customer service and also people taking WhatsApp messages how bad the interior is, how the seat didn't work, how something was dirty. So I get about four or five mails on our Air India mails every day, some in WhatsApp, some in email. Our aim is to give a product which every Indian is proud of, give a service which I don't want a second one which is better than anything else that exists.
From our point of view all our businesses have to do massive transformation on four dimensions. One is AI, I'm pretty sure Nandan covered a lot of AI so there is going to be a huge impact of AI so every company has to do the transition whether it's B2B or B2C. Second is energy transition. Third is supply chain transition. Fourth is talent transition. So this is happening in all companies whether it is steel, whether it is automobile. In fact automobile is very visible. We have pivoted to electric vehicles. Commercial vehicles also we've gone through electric, we've gone to electric buses, hydrogen buses. We already produced the first set of hydrogen buses. But still the economics has to work out in some of these technologies. Similarly in power we are going through a massive transformation. We have pivoted towards renewable. I think by 25 our renewable capacity will be higher than our coal capacity. And by 27 28 probably our renewable capacity will double the coal capacity.
I can't give you a definitive statement but training is our core competence. We know how to train people and we have already created pilots. We might set up a center of excellence for the group. We are already putting the framework in place. We will put a lot of hero projects across the group on AI and machine learning. We're already doing a pilot in one small company. Can we change all the systems to be charged? Okay. So, we're doing pilots like that. So, the good thing is we have good leaders across the group. We got people who are open who are not resistant to change and then we got a lot of talent who needs to be reskilled and also we have people who have the capability. So I think we need to bring it all together. We need to work with all the leaders in the group and we will do that. So we are going to do the same thing for sustainability. So we already creating certain structures in the group.
Let's not forget that this group has a phenomenal history and the biggest strength of the group is the brand, the longevity. People who have been with the group for long years and the group has been led by some personalities who are legends whether it is J.R.D. Tata, J.N. Tata, they're all big legends. So the group has so many things which are the core strength of a group, the value system and lot of processes. But the issue is when you run such a diverse group for so long complexity sets in. So on the one hand we had all the positives on the other hand a lot of complexity and sometimes when you take decisions at a particular point in time it makes sense in hindsight that decision may not be the right decision. When you run such a large group and take decisions these things happen. So because of which we had issues in some companies, leverage issues, balance sheet issues.
So my priority was first to... I actually call it the three phases. First is strengthening the core. So I coined this 3S strategy but basic idea was how do you get the group fit, balance sheet fit in all companies, then how do you simplify the structures, simplify the businesses a particular company is involved in and the markets in which they are focused on, number of subsidiaries we have, levels of management, we have. So simplification in every dimension and then we have so many businesses there is a lot of synergy between businesses. We couldn't have launched an electric vehicle, we launched it in 6 months time.
I'll only say that there are tremendous opportunities. I think whether you're talking Indian business or global business because whether it is in AI world or energy transition world or the supply chain world. All these are opportunities across sectors and also innovation even materials, food, the intersection between technology and biology. I mean you can take any vector, the opportunity is just tremendous. So I would only say that people should continue to be bold but they have to have discipline. They have to have discipline and it does take to build a good business. Take time to build a good business and they need patience also. They need patience and I call it inspiration with rigor. Just inspiration doesn't do it. Just talking about rigor all the time doesn't do it. You need the combination. You need the aspiration, inspiration, but you need the rigor in discipline.
