Best Kept Secrets: Tata Sons - 2
MUMBAI: Tata Sons has over 100 subsidiaries of which over 80 are unlisted. Most of the big unlisted subsidiaries are incurring big losses.
The biggest of them, Tata Tele, incurred a loss of over Rs 800 crore in FY08. DTH Venture Tata Sky’s FY08 performance is almost as bad as FY07.
Tata Group’s life insurance JV with AIG, too, posted losses of over Rs 200 crore though its revenue increased by over 50%. Its general insurance JV did marginally better, posting a net profit of Rs 12 crore, though revenue growth was quite unimpressive.
Retail chain Chroma, too, continued to bleed, increasing its losses by three times over FY07.
Notwithstanding these losses, Tata Sons made significant investments in these companies, since most of them are start-ups.
Notable among them are Tata Realty & Infra where Tata Sons pumped in over Rs 1,700 crore, and Tata Capital, which received over Rs 570 crore in equity investment from Tata Sons.
The rationale? Tata Sons’ Directors Report justifies the investment in these words...“Tata Capital, a 100% subsidiary, has to be capitalised to focus on retail finance, corporate finance, distribution and broking, wealth management, private equity, merchant banking and rural finance. “
Tata Sky
FY08 Revenues – Rs 381cr
FY08 Net Loss – Rs 605cr
UTVi Industry News: Best Kept Secrets: Tata Sons - 2
MUMBAI: Tata Sons has over 100 subsidiaries of which over 80 are unlisted. Most of the big unlisted subsidiaries are incurring big losses.
The biggest of them, Tata Tele, incurred a loss of over Rs 800 crore in FY08. DTH Venture Tata Sky’s FY08 performance is almost as bad as FY07.
Tata Group’s life insurance JV with AIG, too, posted losses of over Rs 200 crore though its revenue increased by over 50%. Its general insurance JV did marginally better, posting a net profit of Rs 12 crore, though revenue growth was quite unimpressive.
Retail chain Chroma, too, continued to bleed, increasing its losses by three times over FY07.
Notwithstanding these losses, Tata Sons made significant investments in these companies, since most of them are start-ups.
Notable among them are Tata Realty & Infra where Tata Sons pumped in over Rs 1,700 crore, and Tata Capital, which received over Rs 570 crore in equity investment from Tata Sons.
The rationale? Tata Sons’ Directors Report justifies the investment in these words...“Tata Capital, a 100% subsidiary, has to be capitalised to focus on retail finance, corporate finance, distribution and broking, wealth management, private equity, merchant banking and rural finance. “
Tata Sky
FY08 Revenues – Rs 381cr
FY08 Net Loss – Rs 605cr
UTVi Industry News: Best Kept Secrets: Tata Sons - 2
