Through this deal, Tata Group wants to hold its own in the online grocery retail market. This business is developing very fast. Especially in the Corona period, the pace of growth has been very high.
Tata group is set to buy more than 60 per cent stake in online grocery store Big Basket. For this, the company has approached the Competition Commission of India, ie CCI. According to the information given to CCI, Tata Sons is thinking of buying a 64.3 per cent stake in the company. The deal will be done through Tata Digital, a subsidiary of the group. Deals exceeding the specified limit require approval from the Competition Commission of India.
Through this deal, Tata Group wants to hold its own in the online grocery retail market. This business is developing very fast. Especially in the Corona period, the pace of growth has been very high. Currently, companies such as Amazon, Walmart acquired Flipkart, Reliance Rite and Grofers are competing in this segment. In the CCI filing, Tata Digital said it intends to buy a 64.30 per cent stake in Super Market Grocery Supply Private Limited (SGS), which oversees business-to-business sales for Big Basket.
Tata group set to launch super app
Tata Digital also said that Supermarket Grocery Supplies Innovative Retail Concepts Private Limited (IRC) can buy the entire stake which handles the Business to Consumer segment for Big Basket. The Tata group plans to launch a super app that will give a single platform to its consumer business.
Growth of the company on a yearly basis
Big Basket has recorded a growth of 36% on an annual basis. Its revenue stood at Rs 3818 crore as on 31 March 2020. In the financial year 20189-20, the company’s expenditure increased by 31 percent to Rs 4411 crore. In that financial year, the loss of the company increased by 26 per cent to Rs 710 crore.