Tata Group to launch `Super App'' for digital services: report
24 August 2020
Tata Group is planning a fresh push into the expanding tech sector amidst the coronavirus-induced slowdown of economic activities with a new “Super App” that the company says, will bring together its varied consumer businesses.
The Tata Group, which has a presence in everything – from salt to information technology and from steel to automobiles and aircraft components – caters to millions of consumers within and outside the country. It is natural for any industry to think in terms of dealing directly with the consumer, if and when possibilities open up.
Reports citing Tata Sons chairman Natarajan Chandrasekaran said the new platform should be ready to launch in India from December or January. This would help the conglomerate enter the widening, yet highly competitive world of online marketing.
Tata group has long been planning to enter the consumer business in big way and had also proposed consolidation of its consumer product businesses under Tata Global Beverages Limited, which in turn will be renamed Tata Consumer Products Limited to reflect the new strategic direction of the company.
The new entity combining key Tata brands such as `Tata Salt’, `Tata Tea’, `Tata Sampann’ and `Tetley’ will reach over 200 million households, giving it an unparalleled ability to leverage the Tata brand in consumer products, according to Tata Group.
The creation of a focused consumer products company with a combined turnover and EBITDA of Rs9,099 crore and Rs1,154 crore, respectively (based on March 2019 figures), will help the product portfolio of the two consumer-focused businesses to grow their share of the foods and beverages market with a broader exposure to the attractive and fast-growing FMCG sector.
The Tata Group, despite its major presence in the IT sector, has so far lagged in its online marketing business.
Tata Group may also want to take advantage of the now-favourable climate with the government restricting the role of Chinese tech companies amid geopolitical tensions and investor interest created openings for newcomers.
Tata plans to use the `Super App’ to make available make a range of services that would eventually include food and grocery, fashion and lifestyle, consumer electronics and consumer durables, insurance and financial services, education, healthcare and bill payments, according to Chandrasekaran.
Chandrasekaran is attempting to sharpen Tata’s focus on consumer and digital products even as he is trying to streamline the group’s convoluted structure, which includes more than 30 operating companies covering a range of industries.