Bombay House, the Tata Group headquarters building, in Mumbai.
| Photo Credit:
DHIRAJ SINGH
Tata Trusts, which holds a 66 per cent stake in Tata Sons Private Limited (TSPL), announced a strategic reorganisation plan for TSPL. The proposed structure aims to ensure the entity operates without classification as a Non-Banking Financial Company (NBFC) or a Core Investment Company (CIC).
Under the plan, Tata Electronics Systems Solutions Private Limited (TESS) and Tata Consulting Engineers (TCE) will merge into TSPL.
Under the new structure, the merged entity will generate operating revenues of ₹105,043 crore, representing 64.3 per cent of total income, exceeding its financial asset income of ₹40,072 crore as of March 31, 2026.
TSPL will not meet the principal business criteria for an NBFC or the conditions of a CIC. Investments in group companies will account for ₹177,120 crore out of total net assets of ₹200,158 crore, falling below the 90 per cent threshold required for CIC status.
The plan returns TSPL to an operating-cum-holding company model, similar to its setup prior to the 2004 demerger of Tata Consultancy Services (TCS). TSPL will retain its status as an unlisted private company.
The merger requires a no-objection certificate from the Reserve Bank of India (RBI) pursuant to the Reserve Bank of India (Non-Banking Financial Companies – Voluntary Amalgamation) Directions, 2025. Following completion, TSPL will surrender its CIC registration certificate.
The boards of Sir Dorabji Tata Trust and Sir Ratan Tata Trust had in July 2025 passed unanimous resolutions that all endeavours should be made to ensure that the status of Tata Sons as an unlisted entity continued. Tata Trusts and TSPL will apply to the RBI and engage with the central bank to execute the reorganisation.
Published on September 28, 2026
