The number of listed companies of the Tata group with an annual revenue of Rs 10.43 lakh crore will be halved

Ahmedabad. 26 September 2022, Monday

One of the country's oldest conglomerates, the Tata Group, which has revenues of $128 billion or Rs 10.43 lakh crore a year and a stock market value of Rs 20.78 lakh crore or $255 billion, has undertaken a major exercise by the board of owner Tata Sons to reduce the number of listed companies. is coming At present, the group, which ranges from salt to software and mineral water to motorcars, currently has 29 listed companies in the stock market and is now in the process of reducing it to 15.

Just last week, Tata Group has announced the merger of four listed companies of its steel and metals business with Tata Steel.

Initiatives have already been taken by the Tata Group to meet the challenges of the future. This exercise has been carried out in such a way that the companies doing the same type of business merge with each other to reduce costs and ultimately increase shareholder returns while reducing the group's royalty payments.

These companies operating in various 10 sectors have about 60 companies which are not listed apart from the listed 29. There is also an idea that merging these companies with listed companies or merging the business of both will make the operations of the company more attractive and increase the profitability. Besides, there are some small companies for which the top management is having to devote a lot of time that is expected to be saved in the position of overseeing a single company. Current chairman of the group N Chandrasekhar and former chairman Ratan Tata are considering this.

Tata Steel had earlier spun off some businesses from consumer goods companies Tata Coffee and Tata Chemicals, which sold directly to consumers, to form Tata Consumer.

Among the technology companies, the Tata group has three companies namely Tata Consultancy, Tata Alexi and the unlisted Tata Digital. In the auto sector there are three companies namely Tata Motors, Automotive Stamping and Automobile Corporation of Goa.

Similarly, in the infrastructure sector there are companies named Tata Project, Tata Consulting Engineering and Tata Realty. There are three companies in the airlines namely Air India, Vistara and Air Asia. In the retail sector, Tata has the air conditioner business of Chrome, Trent, Infinity Retail and Voltas. In telecom there are companies like Tata Tele, Tata Play. Apart from this, chemicals include Tata Chemicals and Rallis India.

By bringing the same type of business under one umbrella, it is expected that it will be possible for the company to invest in the future, and also to reap more benefits from this investment.