The board of the $111 billion Tata Group is set to meet on Friday even as the group's businesses remain impacted due to the COVID-19 pandemic. Companies across sectors have felt the brunt and are devising a strategy on mitigating risks and pushing growth in this environment will be critical and challenging. The companies severely impacted are from sectors including hospitality, auto, aviation and consumer goods.

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Here's what to expect from the board meet today:

The board may evaluate and discuss strategies to allocate funds to group companies and prioritize which sectors and firms need more liquidity. It will also discuss and outline a plan of action for cost reduction and optimisation across group companies and further discuss ways to increase synergies across firms. Since N Chandrasekaran has taken over the group as the chairman, he has increased synergies across group companies to best leverage the strength of the group. Ways of leveraging strength across group functions will play a key role in optimizing costs.

Tata Steel, JLR key focus

The two businesses impacted the most by jitters in Europe have been Tata Steel and JLR. The UK government is said to be considering financial assistance for some companies over and above the pre decided 50 pound loan offer, but for that they are taking equity in these firms in return for loans. Tata Group is unwilling to give out equity to the UK government. As a result, the board will discuss on strategies ahead for both these companies. These may include bringing in investors or partners on board to bring in liquidity, cut costs, optimise or scale down operations.

First Published:Jun 5, 2020 11:50 AM IST