Tata Sons, the holding company of the diversified Tata Group, and several operating entities in the salt-to-software conglomerate have already restored staff salaries and will likely announce pay increases in 2021 after top executives took an estimated 20% pay cut last year to hold down costs through the COVID-induced economic downturn.
TCS, Voltas, Tata Consumer, Titan, Tata Motors, Tata Chemicals, Tata Power, Tata Steel, Trent, and TataCapital are among the group blue-chip entities that have already announced pay increases and staff bonuses. Top group officials said they are optimistic about India's growth story, with the country likely regaining its position as the world’s fastest-expanding major economy.
Compensation of top management executives is being restored by the end of this month and pay increases are being finalized across group companies.
Bhaskar Bhat, Tata Sons director, said there is optimism about business prospects in the country.
"Businesses in smaller towns are roaring and I am very optimistic about the Indian consumer,” Bhat said. “The wheels of growth are driven by the consumer. The group focused on protecting its employees last year and kept costs in check. Going ahead, profits will be driven by business growth too."
Significant cost compressions such as electricity, security, and food costs have gone straight to the bottom line, the CEO at a group company said.
“No one is talking about how much infrastructure costs they saved, with employees working from home, “said a top industry executive.
"Also, as essential services, our employees have shown great resilience and commitment toward their roles despite health concerns and we find it appropriate to acknowledge and reward their contribution to growth," a top company official said. A Tata Capital spokesperson said monthly business disbursements are back to similar or higher levels than last year.