(ET)
Tata Power the country’s largest integrated power company, has drawn a blueprint to collapse several of its estimated 95-plus subsidiaries with an eye on profitability and a nimbler operational structure. The company will initially focus on breaking down the wholly-owned subsidiaries to be part of the main operational businesses and will later look at joint ventures, a top official close to the development said. Tata Power will seek shareholders’ approval for the restructuring which will take several months, he said, adding the company may keep the subsidiaries to less than 20. An email sent to the company remained unanswered till the time of going to press. Tata Power has around 50 subsidiaries (40 are wholly-owned), 37 JVs and 8 associates. “Many of these companies were created because of a legal requirement then. The move is part of Tata Son’s larger strategy to shrink over 1,000-odd subsidiaries owned by the Tata Group’s operating companies to a manageable number,” said a person close to the matter.
