Tata Group eyes more stakes in key units

mumbai — India’s Tata Group, seeking to cement control over a sprawling $100 billion business empire, is exploring ways to boost its stakes in key listed companies including the maker of Jaguar luxury cars, people with knowledge of the matter said.

Tata Sons, plans to raise its ownership over time in five of its largest businesses including Tata Motors Ltd and Tata Steel Ltd, according to the people, who asked not to be identified because the information is private. A key priority for incoming Tata Sons Chairman Natarajan Chandrasekaran, who takes charge next month, will be to prepare a plan to protect group companies from potential takeover threats, the people said.

Chandrasekaran, 53, has been tasked with ensuring the group has sufficient power over major listed companies using the Tata brand, according to the people. India’s largest conglomerate aims to gradually increase its holdings in Indian Hotels Co, which runs the Pierre in New York, as well as Tata Chemicals Ltd and Tata Power Co, the people said. While it owns 73 per cent of Tata Consultancy Services Ltd, the group’s stakes in the other key companies range from 31 to 39 per cent.

Tata Sons had to call extraordinary general meetings to remove Cyrus Mistry from the boards of its operating companies after he was ousted as group chairman in an October boardroom coup.