Overlaps in businesses of tata affiliates

Abstract

Various group companies diversify to further their own businesses and they end up overlapping with other affiliates’ businesses when they expand in the same value chain. This also happens when certain projects/business ideas do not find acceptance from the group and end up being cases of unrelated diversification for certain group companies. The group center makes attempts to reorganize businesses. However, it is constrained by the limited financial control and the costs of monitoring every group company and initiatives under it. These facts indicate that with an ever-expanding scope and business lines of a business group, overlap of inter-affiliate business will become inherent to the system.