Tata, the country’s largest business group, has merged its three companies into one. According to reports, consumer goods company Tata Consumer Products Limited (TPCL), which makes everyday household items, has merged its three wholly-owned subsidiaries after obtaining NCLT and other regulatory approvals. Let us also tell you what plan Tata Group has chalked out.
Merger of these companies
According to a statement from Tata Group’s consumer goods unit, TCPL has merged its wholly-owned subsidiaries – Tata Consumer Soulful Private Limited, Nourishco Beverages Limited and Tata SmartFoods Limited into the company. “We wish to inform you that the conditions mentioned in Clause 17 of the Scheme, including filing of certified copies of the order in Form INC-28 with the concerned Registrar of Companies, have been duly complied with,” the company said in a statement to the stock exchange. Accordingly, as per the plan, the effective date of the scheme (of merger) is September 1, 2024.
What is the Tata Group’s plan?
This is in line with the company’s focus on simplifying and rationalising its business. The company said that this consolidation of the legal entity structure will drive efficiency and synergy. TCPL’s segments include tea, coffee, water, RTD, salt, pulses, spices, ready-to-cook and eat products, snacks, etc. which is currently seen as a tough competition for Mukesh Ambani’s FMCG arm. This is the reason why Tata Consumer is not only buying new companies but also merging other subsidiaries.
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Tata shares will remain in focus
Following the information about this merger, the shares of Tata Group’s consumer goods company Tata Consumer are likely to be in the spotlight on Monday, i.e. today. However, on Friday the company’s shares closed unchanged. According to BSE data, the company’s shares closed at Rs 1,199.20. While during the trading session the company’s shares touched the day’s high of Rs 1,206.95. By the way, the company’s market capitalization is considered to be over Rs 1.18 lakh crore. Tata Consumer Products shares have given returns of over 12 per cent in the current year and over 44 per cent in the last year.
