Indian multinational conglomerate Tata Group has reportedly initiated talks with potential investors to acquire stakes in its new digital platform. Sources close to the matter stated that the group is planning to modernize its consumer businesses as well as consolidate wide array of its digital assets in an all-in-one e-commerce platform.
It is to be noted that Tata Group currently owns various entrenched consumer businesses such as joint venture with Starbucks in India, chain of Taj hotels, Star Bazaar supermarkets, Titan watch showrooms, and Tanishq’s jewelry stores, which already have an online presence.
If sources are to be believed, the group’s holding company Tata Sons Pvt. Ltd. is exploring and bringing in strategic and financial investors which also includes major technology corporations. However, discussions with investors are still at an embryonic stage and there is no assurance of a potential deal yet.
According to industry experts, bringing in outside investors would not only support Tata’s digital ambitions, but also it might help the group to reduce its debts following the shutdown of its operations amidst COVID-19 pandemic.
Tata Steel Ltd.’s net debt reached USD 114 billion while the net automotive debt of Tata Motors was recorded at USD 6.5 billion (480 billion rupees), cited sources with relevant information.
Reportedly, Tata’s apparent e-commerce platform will take on Walmart’s Indian venture Flipkart, Amazon.com, and Ambani’s Jio platform. In fact, Walmart is in talks with the group for an investment of around USD 25 billion in the conglomerate’s new digital platform.
Source Credits –