The Tata Group is reported to have embarked on a business consolidation exercise involving units in its technology and infrastructure units as the new chairman Natarajan Chandrasekharan streamlines operations of the group.
Tata Sons, the holding arm of Tata group of companies, is weighing a plan to bring its various technology businesses under Tata Consultancy Services (TCS), in a move to streamline its technology operations.
Tata group, which manages more than 100 operating companies, is also considering a plan to merge several infrastructure businesses into a single company, reports quoting sources close to the development said.
The restructuring will bring several unlisted technology businesses of the group under the listed entity, Tata Consultancy Services Ltd, according to the reports which cited people familiar with the developments.
The aim is to reduce the number of units and make management more efficient, the reports said, adding that the group may also opt to sell some smaller units that don't fit with its business strategy.
While the move may be part of a conscious decision to rejig operations of TCS, a decision is yet be made on which of the technology units would be grouped under
Tata group hasn't made a final decision about which companies would go with TCS.
The Tata group controls Mumbai-listed Tata Elxsi Ltd, a product engineering firm with a market value of about $810 million. Besides the group owns Tata Interactive Systems, which sells computer-assisted learning products, as well as closely held outsourcing provider Tata Business Support Services Ltd.
The new group chairman N Chandrasekaran has been going about a revamp of men and operations of the $100 billion conglomerate, which makes everything from salt to aircraft parts
Tata group had in May hired former investment banker Saurabh Agrawal as chief financial officer, filling a role that's been vacant for five years.
Deliberations are at an early stage, and there's no certainty they will result in a transaction, the people said. A representative for Tata group declined to comment.
Tata group is also considering a plan to merge several infrastructure businesses into a single company, the reports said. Closely held Tata Realty and Infrastructure Ltd, which is into the business of building bridges and airports, Tata Projects Ltd that works on roads, railways and power transmission networks would also form part of the merger move.
Besides, the company owns Voltas Ltd, which makes refrigerators and air-conditioning systems, besides providing engineering services and developing water treatment plants.
Meanwhile, Tata Sons last week announced the appointment of Aarthi Subramanian as the Tata group's chief digital officer as part of management rejig. Subramanian will report to N Chandrasekaran, executive chairman of Tata Sons, in her new role.