Tata Group is reviewing its diverse portfolio to streamline operations and allocate capital more efficiently. Chairman N Chandrasekaran will unlock value in businesses that are non-core and face growth headwinds. He is also capping capital exposure in Tata Ceramics, Tata Business Support Services, Tata Asset Management, Tata AutoComp Systems, and Tata Chemicals' fertiliser unit.
Sources said the group has started a process to sell drug discovery services company Advinus Therapeutics, drawing interest from private equity funds Kedaara Capital and True North as well as from strategic players, GVK Biosciences and Lambda, a unit of Intas Pharma. These divestitures of small to med-sized companies wouldn't reduce the group's $25-billion debt burden much, but signal the chairman's intent to deploy money in businesses with growth momentum and better return on equity.
Advinus Therapeutics, co-founded along with entrepreneurial scientist and former Ranbaxy R&D head Rashmi Barbhaiya a decade ago, is currently valued between £40 million and 50 milllion. Tatas decided to exit the business given its long gestation nature and scaling up challenges. Kerala-based Tata Ceramics, which has seen an ownership change with Titan taking control of the unit from Tata Power, and Hyderabad-based stand-alone BPO company Tata Business Support Services are among the smaller assets where the group is reconsidering its interest. Chandarasekaran has renewed plans to sell stake in Tata Asset Management, which has drawn interest from US' Vanguard and Europe Allianz.
