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Tata Industries To Hive Off Some Of Its Startups The move comes in line to consolidate the scalable e-commerce entities under a single umbrella

By Teena Jose

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Tata Industries, reportedly, set 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 weeks. The move comes in line to consolidate the scalable e-commerce entities under a single umbrella.

As per available reports, this new development comes as a part of Tata Son's strategy to merge similar businesses in various Tata Group companies that focus in tapping synergies, cut costs and aims at building scale and competitive advantage.

An executive close to the matter in a news report was quoted as saying, "Capital allocation efficiency and scale are the focus here. Smaller businesses need to scale up to be profitable and those that can are being housed in entities that can do so. Tata Cliq and Tata Health are all businesses that will scale under Tata Neu and the kind of Capital allocation they need to scale up. Tata Health will be integrated into Tata Digital's medical e-commerce business, 1mg."

As per reports, Tata Industries has incubated ventures in several sectors, including control systems, information technology, financial services, auto components, aerospace and defense, telecom, hardware and telecommunication services. Currently, Tata Cliq is under Tata UniStore which is owned by Tata Industries and the group's lifestyle retail business Trent. Tata Cliq has exited the consumer electronics category that had formed 50 to 55 per cent of its business. The company's consumer electronics, smartphones and appliances division has been integrated with Tata's flagship consumer electronics retail chain, Croma.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
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