Industr

Tata’s plan to take majority stake inBigBasket

(Adds details)

, March 12 (Reuters) - Indian conglomerate TataSons plans to buy a majority stake in Alibaba-backedonline grocery seller BigBasket, a filing with thecountry’s antitrust body showed on Friday.

The deal, if approved, would put Tata - a more than150-year-old group with interests in everything from luxury carsto software - in direct competition with Amazon,Walmart’s Flipkart and an upstart grocery service fromReliance Industries, backed by billionaire MukeshAmbani.

In the filing with the Competition Commission of India, TataDigital Ltd, a wholly owned unit of Tata Sons, proposed to buy64.3% of an entity that runs business-to-business sales forBigBasket.

Media agencies have reported that the group aims to takecontrol of more than 60% of BigBasket, buying out Chinesee-commerce giant Alibaba’s stake.

The proposal comes as e-commerce sales, especially of foodand groceries, have exploded in India as the COVID-19 pandemicspurred a shift to online shopping.

BigBasket’s rivals are expected to spend heavily on thee-grocery business.

Flipkart has announced plans to expand to more Indiancities, while Reliance’s digital unit - which is likely tosupport its grocery service - has raised more than $20 billionfrom investors including Facebook and Alphabet’sGoogle.(Reporting by Sachin Ravikumar in Bengaluru; Editing by MajuSamuel and Sriraj Kalluvila)

This article is closed for comments.
Please Email the Editor

Printable version | Mar 16, 2021 7:21:37 PM | https://www.thehindu.com/business/Industry/tatas-plan-to-take-majority-stake-inbigbasket/article34056907.ece

Next Story