Tata Sons chairman Ratan N Tata said here today Telecom and Information Technology sector will drive the Tata group's future growth. The group has decided not to enter new areas of business such as aviation, which had till recently figured prominently in its investment plans. "Telecom and IT will be the thrust areas for us. Though sectors such as hospitality and tea will achieve higher growth in the coming years, it will be Telecom and IT that will drive the Tata group's future growth," Ratan Tata, who was here to formally inaugurate Videsh Sanchar Nigam Ltd's SAFE submarine, cable station, told reporters.

Tata said retailing will be another area where the group plans significant investments in the coming years. "We will be entering the retail segment in a big way," he said. The company has taken a policy decision not to enter the aviation business. A couple of years back, the group had tied up with Singapore Airlines to bid for Air-India. "The tie-up is no longer valid," he said adding the stiff competition under which the international airline industry operates does not leave enough room for Air-India to be run efficiently.

The company will also not bid for Bharat Sanchar Nigam Limited (BSNL), he said in reply to a question. "I presume, the government has not taken a decision on the BSNL disinvestment," he added. Going forward, he would like to see the entire telecom business of the group under one company. Asked if this implies a merger between VSNL and Tata Teleservices, he said the merger was not something that will happen immediately.

On the retirement plans, Tata said he will retire in December this year when he completes 65 years of age as per the retirement policy of the group (which Tata himself put in place). This will mean a new chief executive for Telco after December. However, Ratan Tata will continue as Chairman of Tata Sons as non-executive member. On the plans for Kerala, he said tourism and IT offer good potential for the state.

The company was exploring new areas for establishing tourist resorts in the state. Tata said there was some representation made by the State Government to look into areas such as power and titanium resources. But the group will not be entering these sectors.