Sumary of Tata gets bullish on e-commerce just as rules threaten to transform:
- NEW DELHI: The Tata Group is taking a more vocal interest in rules shaping online marketplaces, hinting at ambitions as it reappraises its retail strategy just as e-commerce reform threatens to muddy plans.
- The $106 billion conglomerate yet e-commerce minnow was far more vociferous in discussions than market leader Amazon.
- com Inc at a July 3 meeting with government officials about proposals such as the prohibition of sales of own-brand or affiliates’ goods, attendees said.
- The rules would greatly increase the compliance burden of a conglomerate’s numerous entities and interests, and hurt them far more than smaller rivals, Tata vice president Poornima Sampath told the online gathering, according to two attendees.
- Two weeks earlier, the government spooked the industry by proposing increased scrutiny of relationships between online marketplace operators and their partners.
- The plan was widely regarded as an attempt to curb the dominance of Amazon and Walmart Inc’s Flipkart and support high-street shops.
- The 153-year-old Tata conglomerate is ubiquitous on Indian high streets, so its voice in favour of e-commerce at the July 3 meeting indicates the degree to which it is changing tack.
- The firm is arguably best known internationally as owner of British luxury car brand Jaguar Land Rover, but it also makes cars at home under its own brand.