TATA to buy Big-Basket | TATA approached CCI to Acquire 64.3% stake in Big Basket
- What's the Story?
TATA Group is believed to create a Super App consisting of all of its retail business offerings in one place. To make this success TATA Group is actively making strategic acquisitions and investments. Recently Tata Digital Ltd. a wholly-owned subsidiary of TATA Group has approached CCI with a proposal to acquire 64.3% of the biggest online Grocery player Big-Basket.
As reports emerged this stake will cost Tatas more than $ 1Bn and they are planning to infuse more capital to enhance its holdings further to around 80%. It is believed that Chinese retail giant Alibaba Group will make its exit following this deal.
- Why It's Important?
As Tatas are planning its Super App to ideally take on Jio Mart, Amazon, Flipkart they have an upper hand even before day 1. Tatas are not just a brand in India but a legacy of trust. All of its brands are loved by Indians and have a very decent work culture. Now combining all its successes in a single basket makes it very obvious that people using one service might opt for another one when it is coming from TATA. Although India is a very price-sensitive market and there are many failures in this super app segment. As the reality of TATA Super App seems a matter of time listed TATA companies that are in the spotlight are Tata Consumer Products, Trent, and Tata Coffee. All of these are expected to get an opportunity to explore a whole new opportunity to increase revenues.
- What's Next?
As Tatas are waiting for the CCI nod to complete this deal it will be interesting to see how they bring all their brands together and leverage the operational excellence creating the Super App. In the upcoming world of multi-channel retail, it is becoming very common when big commerce players are tieing up with offline retailers and it will be interesting to see how Tatas actually develop their eco-system.
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