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Tata group to halve number of listed entities to boost competitiveness

The “synergy and simplification” strategy is aimed at improving scale and cash flows, and some believe is “long overdue”

September 26, 2022 / 02:20 PM IST
Consolidation is part of Tata Group Chairman N Chandrasekaran’s plan to make the conglomerate “future ready” and the process is expected to happen over the coming months, sources said (File image: Reuters)

Consolidation is part of Tata Group Chairman N Chandrasekaran’s plan to make the conglomerate “future ready” and the process is expected to happen over the coming months, sources said (File image: Reuters)

 
 
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The Tata group plans to halve its number of listed companies to around 15 to “invest in fewer but bigger and more competitive entities”. The “synergy and simplification” strategy is aimed at improving scale and cash flows, sources told The Economic Times.

One source said the move is “long overdue” to eliminate “needless overheads and costs in the system”.

Moneycontrol could not independently verify the report.

This consolidation is part of Tata group chairman N Chandrasekaran’s plan to make the conglomerate “future ready” and the process is expected to take place over the coming months, the sources said, adding that fewer companies would also rationalise management time and effort.

Tata group at present has 29 listed companies, besides nearly 60 unlisted ones and hundreds of subsidiaries, spread across 10 sectors.

Tata Sons did not respond to queries, the report added.

Earlier this week, it was reported that Tata group has started an exercise to evaluate options to consolidate AirAsia India and Vistara under Air India.

It is understood that the plan is to merge AirAsia India into Air India Express over one year, and to bring all of the group's airlines under the Air India umbrella by 2024.

Besides the airlines business, Tata Steel’s board has approved the scheme of amalgamation between seven of its group companies and itself, as per the company’s exchange filing on September 23.

These are Tata Steel Long Products, The Tinplate Company of India, Tata Metaliks, TRF, the Indian Steel & Wire Products, Tata Steel Mining, and S&T Mining Company.

Moreover, Tata Consumer Products had in March announced absorption of Tata Coffee, besides cutting its legally held entities to 24 from 45 after restructuring. In 2018, Tata’s defence and aerospace companies were brought under the Tata Aerospace & Defence banner, and in 2017, CMC and Tata Consultancy Services were merged.
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first published: Sep 26, 2022 11:09 am