Tata Group is deliberating a merger of its multiple middle-market offerings into a single big fund. The main company has five funds amounting to a total of $1 billion under its wings. The largest corporate-sponsored PE franchise in the country, it has investments in major companies like Uber Technologies and Star Health Insurance. Sources in the loop said Tata is expected to take a call on consolidating PE operations ahead of its plans to tap the market for raising fresh funds.
The proposal comes as the group plans to drive growth with a simpler organisational structure, scaling up businesses by combining units in similar lines of operations and benefiting from synergy effects. This will be the last consolidation move within the group under chairman N Chandrasekaran. The last internal shuffle came under former chairman Cyrus Mistry, when CMC was merged with TCS. The latest development clashes with a process of leadership change at Tata Capital. Praveen Kadle, who has been at the helm of the company will move out from the CEO and MD's role in April. He will be replaced by former ICICI bank veteran and ex-True North partner Rajiv Sabharwal.
Tata Opportunities Fund made investments in Uber, Ginger hotels, Tata Sky, Shriram Properties, Varroc Engineering and TVS Logistics. Tata Capital Growth Fund counts Janalakshmi Financial Services and Star Health Insurance among its portfolio companies. Tata funds invested in both group companies and outside entities.
