In­dia’s Tata Group said to mull stream­lin­ing of tech­nol­ogy and in­fras­truc­ture busi­nesses

Muscat Daily - - BUSINESS -

Mumbai, In­dia - Tata Group, the In­dian con­glom­er­ate that man­ages more than 100 op­er­at­ing com­pa­nies, is weigh­ing a plan to stream­line its tech­nol­ogy and in­fras­truc­ture busi­nesses, peo­ple with knowl­edge of the mat­ter said.

The con­glom­er­ate is con­sid­er­ing a re­struc­tur­ing that would see sev­eral of its tech­nol­ogy busi­nesses moved un­der pub­licly traded Tata Con­sul­tancy Ser­vices Ltd (TCS), ac­cord­ing to the peo­ple. Tata Group, which wants to re­duce the num­ber of com­pa­nies it over­sees, may sell some smaller units that don’t fit with its strat­egy, the peo­ple said, ask­ing not to be iden­ti­fied.

Tata Group hasn’t made a fi­nal de­ci­sion about which com­pa­nies would be folded un­der TCS, the peo­ple said. It con­trols Mumbai-listed Tata Elxsi Ltd, a prod­uct en­gi­neer­ing firm with a mar­ket value of about US$810mn. The group also owns Tata In­ter­ac­tive Sys­tems, which sells com­puter-as­sisted learn­ing prod­ucts, as well as closely held out­sourc­ing provider Tata Busi­ness Sup­port Ser­vices Ltd.

Since join­ing ear­lier this year, new Tata Group chair­man Natara­jan Chan­drasekaran has been seek­ing to re­vamp the US$100bn con­glom­er­ate, which makes ev­ery­thing from ta­ble salt to lux­ury cars.

Tata Group said in May it hired former in­vest­ment banker Sau­rabh Agrawal as chief fi­nan­cial of­fi­cer, fill­ing a role that’s been va­cant for five years.

De­lib­er­a­tions are at an early stage, and there’s no cer­tainty they will re­sult in a trans­ac­tion, the peo­ple said.

Tata Group is also con­sid­er­ing a plan to merge sev­eral in­fras­truc­ture busi­nesses into a sin­gle com­pany, the peo­ple said. Its Voltas Ltd af­fil­i­ate, which makes most of its money pro­vid­ing air con­di­tion­ing sys­tems, also of­fers en­gi­neer­ing ser­vices and de­vel­ops turnkey wa­ter treat­ment projects. Closely held devel­oper Tata Realty & In­fras­truc­ture Ltd has a busi­ness that builds bridges and air­ports, while Tata Projects Ltd works on roads, rail­ways and power trans­mis­sion net­works.

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