Why is Tata Trusts Chairman Noel Tata struggling to pull this Tata company from continuous losses, its name is…

Tata Group update: In a significant business development months after Ratan Tata’s death, Tata International Limited (TIL), the trading and distribution arm of the Tata Group, is under the spotlight after two straight years of losses. At a recent Tata Sons board meeting, independent director Harish Manwani pressed for a sharper business strategy for the TIL. Warning that the company risks drifting as a mix of short-term trading activities without clear direction, Harish Manwani pressed Noel Tata to clarify Tata International’s strategic objectives. Most importantly, the remarks were directed to Noel Tata, Chairman of Tata Trusts, in the presence of Tata Sons Chairman N. Chandrasekaran and other board members.

Why is Tata struggling with Tata International Limited?

Tata International Limited (TIL), a Tata enterprise which trades in iron ore, coal and agricultural commodities such as oilseeds and pulses, has been struggling to stay profitable in the recent years. In FY25, the Tata enterprise posted a net loss of ₹477 crore with revenues of ₹31,868 crore. The reasons for the loss have been reported to be low-margin trading, foreign exchange losses, restructuring costs and the cancellation of a Madagascar exploration license. This followed a ₹213 crore loss in FY24, after a modest profit of ₹100.23 crore in FY23.

Story highlights:

• Tata International Limited (TIL), the Tata Group’s trading arm, has posted losses for two straight years.
• Tata Sons and Noel Tata are pushing revival plans, including ₹1,000 crore funding support.
• Tata International Limited (TIL) has been a source of concern for Ratan Tata and Noel Tata’s Tata.

How has Tata International Limited performed in recent years?

Despite doubling turnover since 2020, profitability and net worth remain serious concerns. Last September, Tata Sons had committed ₹1,000 crore in funding support to TIL, while Noel Tata announced plans to bring in external partners and invest $100 million in two joint ventures with Mitsubishi Corp. and Mercuria , part of a broader effort to put the company back on track.