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Tata Industries to hive off some news businesses to Tata Digital

Tata Industries is likely to hive Tata Cliq, Tata Cliq Luxury, Tata Cliq Palette and Tata Health off to Tata Digital in the next 2 years. Tata Health will be integrated into Tata Digital’s medical e-commerce business 1mg.

ET Now Digital

Updated Sep 29, 2022, 07:05 IST

Tata Industries to hive some startups off to Tata Digital

Photo : BCCL

Tata Industries is likely to hive some of its startups such as Tata Cliq, Tata Cliq Luxury, Tata Cliq Palette and Tata Health off to Tata Digital over the next two years. The move is part of the company's strategy to bring scalable e-commerce entities under one umbrella.

The development is part of holding company Tata Sons’ strategy of merging similar businesses in various Tata group companies to tap synergies, cut costs and focus on building scale and competitive advantage, reported Economic Times.

Capital allocation efficiency and scaling up can be better focused on small businesses under units which can do so. Businesses such as Tata Cliq and Tata Health will have a better chance of scaling up and focussed capital allocation.

Tata Health will be integrated into Tata Digital’s medical e-commerce business 1mg, the report added.

Tata Industries, an investment holding company has incubated the group’s new businesses such as Tata Cliq, Tata Health, Inzpera Life Sciences, Flisom Solar Modules, Tata Strategic Management Group, Tata IQ, Tata Class Edge and Studi. Some of the businesses under the Tata Industries have been moved to other entities to unlock synergies.

Tata Smart Foods was acquired by Tata Consumer Products from Tata Industries in 2021 and Tata Advanced Materials was moved into Tata Aerospace. Employees in these startups were moved and shifted into various group businesses according to their experience and skill.

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.

Currently, Tata Cliq is under Tata UniStore which is owned by Tata Industries and the group’s lifestyle retail business Trent.

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