Tata's Top Acquisitions: From Tetley to Jaguar

When Tata makes a move, the world watches. Agreed?

In the high-stakes business world, where things can change overnight, ups and downs are more or less a part of running a company.

But when we talk about the Tata Group— India's biggest conglomerate, some of its historic acquisitions almost turned the tables on business rivals.

Kya aapko pata hai how Tata bagged Jaguar, BigBasket, or Air India?

Buckle up as we are about to learn in detail about these remarkable deals in Tata Group’s portfolio.

From Boardrooms to Headlines: Tata's Bold Business Moves

It’s kind of right to say that:
Each of the deals below isn’t just a chapter in Tata’s journey—it’s a masterclass in how to dream big, act boldly, and gain the potential to lead globally.

Here’s a closer look at the group’s iconic takeovers in the reverse chronological order:

1. Kaleyra

Acquired by: Tata Communications

The acquisition took place in March 2023, with Tata Communications paying ~₹830 crore in cash for the deal. This marks the second buyout for the Tata company (the first was VSNL, details about which are given below).

Kaleyra is a Communications Platform as a Service (CPaaS) provider, offering APIs and tools that enable businesses to connect with customers across multiple channels worldwide.

It has a notable market presence in multiple countries. As of Q1 2023, its business distribution was as follows:

The addition of Kaleyra is expected to contribute around 15% to Tata Communications’ existing revenue.

This move further aligns with the company’s goal of doubling its data revenue from FY23 to FY27, targeting ₹28,000 crore by FY27.

As of FY24, its:

• Revenue is ₹20,968.82 crore
• And EBITDA is ₹6,697.67 crore

Also, the acquisition is projected to reduce Tata Communications’ EBITDA margin for FY25 to 21-22%, assuming Kaleyra operates at a margin of 0-7%.

Overall, Tata Communications will probably aim to leverage Kaleyra’s expertise and international presence to enhance its capabilities in the global telecom sector and fulfil its financial objectives in the coming fiscal years.

Want to gain a deeper understanding of the Tata Group's vast reach and influence? Check out our article, which explores this conglomerate in detail.

2. Air India

Acquired by: Talace Pvt. Ltd.

On 27 January 2022, Talace Pvt. Ltd. acquired a 100% stake in Air India from the Government of India (GOI) for ₹18,000 crore.

Talace Pvt. Ltd., a Tata Group entity established to acquire Air India, is exploring diverse opportunities in the transportation sector, extending well beyond the airline's operations.

According to regulatory filings, the company aims to venture into areas like rail, rapid transit, and metro services, alongside running training institutes for the transportation sector and manufacturing components for transportation and communication equipment.

The journey of Air India:

• In 1932, J.R.D. Tata founded Air India.
• However, in 1953, the GOI acquired a majority stake in Air India from Tata Sons and nationalised the airline through the Air Corporations Act.
• The airline was renamed Air India International Ltd., while domestic services were moved to Indian Airlines.
• But after struggling to run it for ~70 years, the government finally let Tata Group re-acquire the airlines in a bidding process.

Overall, this move holds historical significance, symbolising a reconnection with the company's roots.

With the acquisition, Tata Group now operates as the second-largest domestic airline in India, combining Air India and Vistara (after their recent merger).

As of October 2024, these two airlines together hold a market share of ~28.5% (Air India – 19.4%, Vistara – 9.1%) in terms of domestic passenger traffic. This positions them behind Indigo, which has a dominant market share of around 60%.

In case you missed their merger news, we’ve covered that in this article. Check it out!

3. 1 mg

Acquired by: Tata Digital

In June 2021, Tata Digital acquired a 58.7% stake in the company, which was later increased to ~63% by December 2021.

1mg is an Indian online health and wellness platform that provides a wide range of services and products, including e-pharmacy, online consultations, lab tests, and health and wellness products.

This acquisition enabled Tata Digital to expand into the rapidly growing digital health sector. The key areas include:

• E-pharmacy
• E-diagnostics
• Teleconsultation

All these critical areas together formed its market value at around ~₹8,450 crore, which was expected to grow at a 50% CAGR (as of 2021). This presented Tata with a potential opportunity to establish a significant presence in the digital health space.

Curious to know about the founders’ legacies who laid the foundation for Tata's success? Be sure to read this article to understand Tata Group’s remarkable growth.

4. Big Basket

Acquired by: Tata Digital

In May 2021, Tata Digital acquired a 64.5% stake in Big Basket for ₹9,500 crore.

BigBasket is an Indian online grocery delivery service that offers a wide range of products, including groceries, household essentials, organic and health products, etc.

This acquisition positioned Tata as India's largest e-grocery player in 2019, holding an estimated 35% market share.

Currently, Big Basket controls around 10-15% of the market share, while other competitors, such as Zomato-owned Blinkit commands a 46% market share, followed by Zepto at 29%, and Swiggy Instamart at 24%, in Q1 FY25.

Furthermore, in 2024, Tata launched Neu Flash, an ultra-fast delivery service, which is expected to boost BigBasket's business and help Tata compete with quick commerce giants like Blinkit and Zepto.

To gain insights into why Tata Group strategically acquired a stake in BigBasket, check out this article.

5. Bhushan Steel

Acquired by: Tata Steel

Tata Steel acquired the company in 2018 for ~₹35,200 crore.

In the same year after being acquired, Bhushan Steel was renamed as Tata Steel BSL Limited. It is now a major Indian steel manufacturing company, which primarily focuses on the production of various steel products, used in a wide range of industries.

Bhushan Steel was on the verge of bankruptcy at the time of acquisition but achieved a remarkable turnaround within 2 years. Its market cap then rose to ₹9,333 crore, which indicated Tata's solid restructuring and strategic management expertise.

Today, it has a steel production capacity of 5.2 million tons per annum.

To understand the debt story of Bhushan Steel and how Tata Steel pulled it out of that crisis, don’t miss this article.

6. Welspun Renewable

Acquired by: Tata Power Renewable Energy Ltd. (TPREL)

On 15th September 2016, Tata Power acquired Welspun Renewables for ₹9,249 crore.

Welspun Renewable focuses on the development, construction, and operation of green energy projects. The company operates both solar and wind power projects, generating renewable energy through these sources.

This acquisition enabled Tata Power's renewable energy portfolio exceeded to 2.3 GW, and gave it the push to become India's largest renewable energy provider.

• In FY2015-16, Welspun's assets generated revenue of ₹768 crore
• Some analysts projected this could rise to ₹1,600 crore (with a net profit of ₹250-₹270 crore)

As of now, Tata Power has 30% of clean energy generation in its portfolio.

Wondering how can you capitalise on India’s rapidly growing renewable energy sector? Then this article will give you the answer.

7. British Salt

Acquired by: Brunner Mond (a subsidiary of Tata Chemicals)

In December 2010, Brunner Mond, which is a subsidiary of Tata Chemicals, acquired British Salt, located in Middlewich, UK, for ~₹660 crore.

Brunner Mond is a British-based chemical company that produces soda ash, sodium bicarbonate, calcium chloride, and other alkaline chemicals. The company later got rebranded as Tata Chemicals Europe.

The acquisition of British Salt provided Tata Chemicals with strategic advantages in the salt industry. Like for instance, British Salt owns brine wells in the UK with a residual life of 50 years, provided a potential for a secure and cost-effective brine supply for Tata Chemicals' operations after the takeover.

If you’re keen on staying updated with fascinating business news on companies, acquisitions, or mergers, Finology Insider has got you covered with insightful and detailed info.

8. Jaguar Land Rover

Acquired by: Tata Motors

In 2008, Tata Motors acquired Jaguar Land Rover (JLR) from Ford for ~₹12,000 crore.

Jaguar Land Rover (JLR) is a British multinational automotive company known for designing, manufacturing, and selling luxury vehicles.

At the time of acquisition, JLR was facing significant challenges, including declining sales and an uncertain future. In 2006, Jaguar's losses hit ~₹3,217 crore (exchange value as per2006). But the real damage came in 2007 when the company reported its largest loss ever: a jaw-dropping ~₹4,680 crore (exchange value as per2006). In addition, the company announced it wouldn’t see profitability until 2009.

The aim of the acquisition was to transform JLR into a profitable luxury vehicle manufacturer by introducing innovative models.

How did the transformation happen?

Tata Motors invested ~₹30,000 crore into JLR, focusing on product innovation and the expansion of JLR's manufacturing plants. Additionally, JLR formed a joint venture with China's Chery, investing ₹15,887.7 crore  (exchange value as per2012) to develop new high-end models, further boosting its growth prospects.

Since the acquisition, Tata Motors has shown impressive financial performance:

• Revenue growth has been at a CAGR of 21%, with JLR contributing 81.6% to total sales
• Operating profit has grown at a CAGR of 24%
• Net profit has grown by 11% since the acquisition

To understand Tata Group's ambitions in the rapidly emerging EV market, be sure to check out this article for a closer look at their future prospects.

9. Eight O'Clock

Acquired by: Tata Coffee (now Tata Consumer Products)

In 2006, Tata Coffee Ltd. acquired Eight O'Clock (EOC), a USA-based coffee company, for ~ ₹1,015 crore.

Eight O'Clock Coffee is popularly known for its high-quality coffee beans and wide range of coffee products. It is one of the leading coffee brands in the United States, offering a variety of ground coffee, whole bean coffee, and K-cups.

The acquisition positioned Tata as a prominent player in the American coffee market.

During the time of its acquisition:

• The USA coffee market was valued at ~₹97,000 crore
• EOC became the third-largest player in this market
• It held a dominant 67% share by volume in the USA retail market
• The company commanded 54% of the branded whole-bean coffee market
• In 2005, EOC generated net sales of ₹505 crore and an EBITDA of ₹125 crore

Further, expanding into the telecom sector, Tata's vision for a connected world found its opportunity with the strategic acquisition of VSNL.

10. Videsh Sanchar Nigam Limited (VSNL)

Acquired by: Tata Communications

In February 2002, Tata Group acquired a 25% stake in VSNL for ₹1,439 crore from the Government of India.

Initially, VSNL, a multinational telecommunications company, was established by the Indian government in 1986. During the 1990s, VSNL held a monopoly in India's telecom sector and gained prominence by introducing the country's first internet package for public use, marking a significant milestone in India's digital journey.

Since the acquisition, VSNL has transformed into Tata Communications and has demonstrated strong financial growth. As of Q2 FY2025:

• Data revenue increased by 21% Y-o-Y, reaching ₹4,834 crore
• Digital portfolio revenue grew by 52.4% Y-o-Y, now accounting for 46% of data revenue, indicating a significant shift towards digital services
• Consolidated EBITDA rose by 10% Y-o-Y

Tata Communications— the pride of Tata Group’s digital and telecom legacy, is listed on the stock exchange.

Want to know more listed companies of Tata? Go and check this article to get the list of them.

Last but not least to this list, Tata's journey into the tea market took a historic leap with the acquisition of Tetley. Scroll down for it.

11. Tetley

Acquired by: Tata Tea (now Tata Consumer Products)

In 2000, Tata Tea acquired the UK-based tea company Tetley for ₹2,750 crore.

Established in 1837 and headquartered in the UK, Tetley is a global tea brand that specialises in producing and marketing a wide variety of teas, including black, green, flavoured, and speciality blends.

This acquisition was the largest cross-border acquisition of an international brand by an Indian company at the time.

It significantly globalised Tata Consumer Products, with ~25% of its revenues coming from international operations in Australia, Canada, the Czech Republic, Poland and the USA.

The Bottom Line

In the business world, acquisitions can make or break companies. However, from redefining the luxury car market to revolutionising grocery delivery, the above Tata’s deals are the proof of its foresight and sometimes high-stakes gambles.

Yet, no journey is without bumps. Some of the Tata Group’s businesses didn’t yield the expected results. Get to know about the failed business of Tata in this article.

In summary, Tata’s daring to take risks while remaining committed to its core values of growth and innovation is commendable.

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