The salt-to-software conglomerate has around 100 operating companies, 29 of which are listed. But the top 10 companies account for 94% its revenue
The Tata Group is planning to cut down, by way of either mergers or stake sales, the number of companies it has listed on exchanges, according to a report by The Economic Times.
As many as 30 of the conglomerate's group companies are listed on exchanges at the moment, with a collective market capitalisation of over $160 billion.
Of this, Tata Consultancy Services (TCS) alone has a market cap of around $109 billion.
The report suggests that the group is planning to have less, but key companies listed on exchanges. The proposed corporate structure will allow it to better manage core businesses and exit non-core ventures.
According to the report, the group is planning to merge its existing non-core companies, which are smaller in terms of market value, revenue and profit, into its main companies.
If the main company is unwilling to take over a smaller one, the group will consider selling it off to an external party, a source was quoted as saying by the news daily.
The salt-to-software conglomerate has around 100 operating companies, 29 of which are listed, and over 900 subsidiaries. But the top 10 companies account for 94 percent of the group's revenue.
"There are three big companies — Tata Steel, Tata Motors and TCS — and they have scale. If you take the remaining, there are a number of companies in different sectors, but they have not scaled up. So I need to figure out a way of scaling them up," N Chandrasekaran, Chairman of Tata Sons, had told CNBC TV18 in October 2017.Besides these three companies, the Tata Group will look to focus on five broad segments: retail and consumer, financial services, infrastructure, tourism, and defence, Chandrasekaran had said.