Tata Industries is planning to hive of its e-commerce startup businesses like Tata Cliq, Tata Cliq Luxury, Tata CLIQ Palette and Tata Health to Tata Digital in the next two weeks as part of a move to consolidate scalable e-commerce entities, The Economic Times reported citing people aware of the matter.
The development comes at a time when the group is undergoing a consolidation strategy led by its principal investment holding company, Tata Sons, which has been merging similar businesses housed in various Tata group companies to tap synergies, cut costs and focus on building scale and competitive edge, the report said.
Earlier this week, Tata Group announced that Tata Steel will merge with itself six of its subsidiary companies. The subsidiaries are Tata Steel Long Products Limited in which Tata Steel holds 74.91 per cent equity, The Tinplate Company of India Limited (74.96 per cent), Tata Metaliks Limited (60.03 per cent), The Indian Steel & Wire Products Limited (95.01 per cent equity holding), Tata Steel Mining Limited and S & T Mining Company Limited (both wholly-owned subsidiaries).
Merger of seven entities with Tata Steel will allow simplification of management and help with sharper focus on the business, Koushik Chatterjee, CFO of the steel giant, said.
Tata Health will be integrated into Tata Digital's medical ecommerce business, 1mg, ET ET Tech report said citing an executive.
Tata has been integrating and onboarding several brands on its newly launched application Tata Neu. The app offers access to brands such as BigBasket, 1mg, Tata CLiQ, Croma and Indian Hotels Company.
Tata Industries Limited is registered with the Reserve Bank of India as a Core Investment Company. The Company is an investment holding company and is part of the promoter group with shareholding in group companies apart from being engaged in incubation / promotion of new business ventures.
Since its inception in 1945, Tata Industries has promoted and incubated Tata ventures in several sectors, including control systems, information technology, financial services, auto components, aerospace and defense, telecom hardware and telecommunication services, amongst several others.