Recalibration Of Tata

Tata Group attempts mergers and demergers in companies to bring sharper focus on businesses.

- NEVIN JOHN

Tata Group chairman N. Chandrasekaran is regrouping similar businesses across different companies through mergers and demergers to enhance operational synergy and build larger corporations that straddle the entire sector in which they operate.

Chandrasekaran’s business consolidation plan took off with the successful formation of the food and beverages (F&B) FMCG business, TCPL, in 2020. It was formed by merging the consumer products business of Tata Chemicals and Tata Global Beverages. In January, Tata Coffee was also merged with TCPL.

In aviation, legal approvals for Vistara-Air India merger will be completed by October and operational merger by next year. The Competition Commission of India approved the merger of Vistara-owner Tata Singapore Airlines with Air India in September last year. In March 2023, the Tatas merged low-cost carrier Air Asia India with Air India Express. All these leave the group with one full-service and one low-cost airline.