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.
A top official close to the development said that Tata Power will seek shareholders’ approval for the restructuring which will take several months, the company may keep the subsidiaries to less than 20. 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.
Tata Power has a presence in all segments of the power sector such as fuel & logistics, generation (thermal, hydro, solar and wind), transmission, distribution and trading. It has public-private partnerships in generation, transmission and distribution in India.
The company will focus on few but important growth areas and evaluate exiting sub-scale assets/non-core investments, which will help it to respond and react faster and bring agility.
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