Tatas To Transfer Croma's Owner To Digital Business Arm

The move comes as Tata Digital tests its super app Tata Neu, in beta version among the conglomerate's huge employee base
Tatas To Transfer Croma's Owner To Digital Business Arm

Tata Sons Chairman N Chandrasekaran is transferring Infiniti Retail (which owns electronics chain Croma) to Tata Digital as he looks to bring together an ecosystem of consumer-centric, omnichannel commerce brands under one roof.

The changes in Infiniti Retail's shareholding is the first rejig within the conglomerate's omnichannel commerce business, even though the two-year-old Tata Digital has built a model through acquisitions (BigBasket, 1MG and CureFit).

The move comes as Tata Digital tests its super app Tata Neu, in beta version among the conglomerate's huge employee base. Many of the Tata Group's consumer brands, including Croma, are on Tata Neu, with a commercial launch slated for next year. The government's proposed consumer protection rules, among other factors, pushed Tata Neu's commercial debut to 2022 from this year.

Electronics is a top category that clocks the highest share of total online sales and this is one of the reasons Tata Sons decided to transfer Croma's shares to Tata Digital, said one of the sources quoted earlier. Infiniti Retail and Tata Digital didn't respond to e-mailed questions. The move is also part of Chandrasekaran's broader plan to streamline Tata Group's corporate structure in a bid to sharpen focus on businesses that have a play in similar segments.

For instance, the chairman transferred the ready-to-eat business (marketed under Tata Q brand) to the publicly listed Tata Consumer Products from Tata Industries. Likewise, he shifted Tata Cha -a tea parlor chain - to Indian Hotels Company (Taj hotels) from Tata Consumer to leverage on the former's wide experience in managing food and beverage formats. 

There are also plans to shift fashion e-tailer Tata Cliq, which has largely remained a fringe player in the online shopping space to Tata Digital from Tata Industries. The inter-se transfer of Croma shares among Tata Group entities and inorganic acquisitions (Tata Digital continues to look at M&As) will help the $103-billion conglomerate scale up its e-commerce play against larger rivals like Amazon, Walmart, and Reliance Industries.

Primary Category
RECOMMENDED FOR YOU
TRENDING ARTICLE