Tag: tata group

Air India will increase its global coverage in years ahead: CEO Campbell Wilson – Times of India

NEW DELHI: Air India has covered a lot of ground since privatisation and its global coverage will further increase in the years ahead, the airline’s chief Campbell Wilson said on Wednesday. He also said the interior refit of the single-aisle fleet, serving domestic and short-haul international destinations, is underway, and will be completed by mid-2025.
Loss-making Air India was acquired by the Tata Group from the government in January 2022, and is undergoing an ambitious five-year transformation plan.
In 2024, Air India completed the merger of Vistara with itself as well as integration of Air India Express and AIX Connect was also done.
In his New Year message, Wilson said these mergers and new aircraft deliveries have taken Air India Group’s fleet to 300 aircraft, allowing it to expand to over 100 domestic and international destinations.
“Air India’s global coverage will further increase in the years ahead, not least because of the recent addition of 100 aircraft to our order book, augmenting the earlier commitment for 470 made in 2023,” he said.
The Air India CEO and MD also said these new aircraft will be supported by a brand-new 12-bay maintenance facility and maintenance training school in Bengaluru (Karnataka), a new 34-aircraft flight school in Amravati (Maharashtra) and the training academy in Gurugram (Haryana).
India is one of the world’s fastest growing civil aviation markets and efforts are being made to make the country a global aviation hub with Indian carriers providing direct flights to international destinations.
“Air India has covered a lot of ground in the period since privatisation; we acknowledge there’s much more to be done.
“All 30,000 Air Indians are fully committed to improving the quality and consistency of our services, in all areas, so that Air India becomes the world-class airline we all want it to be,” he said.

Source link

January 1, 2025
Tata Group To Create 5 Lakh Manufacturing Jobs Over Next 5 Years: Chairman N Chandrasekaran

New Delhi: Tata Group is planning to create over five lakh new manufacturing jobs over the next five years from its projects, stated Tata Sons Chairman N Chandrasekaran in his New Year message to the Group’s employees.

“Our Group plans to create 500,000 manufacturing jobs over the next half decade.” Chandrasekaran said these jobs will come from Group’s investments in factories and projects to produce new age products like batteries, semiconductors, electric vehicles, solar equipment and other critical hardware,” N Chandrasekaran said.

These will come in part from the aforementioned investments in facilities across India-factories and projects that will produce batteries, semiconductors, electric vehicles, solar equipment, and other critical hardware destined to play a central role in the economy of tomorrow,” Tata Sons Chairman added in his letter.

In addition to these manufacturing jobs, the group will also create jobs in services across its retail, tech services, airlines and hospitality industry among others.Chandrasekaran highlighted the Group’s initiatives in the artificial intelligence sector.

Construction has begun at over seven new manufacturing plants, including India’s first semiconductor fab in Dholera, Gujarat, and a brand-new semiconductor OSAT plant in Assam.

There is the electronics assembly plant in Narasapura, Karnataka, an automotive plant in Panapakkam, Tamil Nadu, and new MRO facilities in Bengaluru, Karnataka. He stated that the Tata Group will also have a new battery cell manufacturing factory in Sanand, Gujarat, and in Somerset, UK.

The Group has inaugurated the C295 final assembly line (FAL) in Vadodara, Gujarat, and began solar module production in Tirunelveli, Tamil Nadu.Tata Sons Chairman expressed his enthusiasm over the upcoming opportunities in Artificial Intelligence (AI) and the manufacturing sector.

“Such moves are exciting for our Group and for India, but more importantly, they give hope to the one million young people who enter our workforce each month. Thankfully, manufacturing has powerful multiplier effects; indirect employment opportunities from sectors such as semiconductor manufacturing are substantial,” he said.

“AI and manufacturing are two fields that are combining “economic opportunity and social progress converge,” he added.N Chandrasekaran highlighted that the global supply chains are shifting their base to India’s favour as the world’s largest businesses strike a new balance between resilience and efficiency.

“Amid relentless geopolitical instability, the equation has tilted firmly toward resilience-and India, with our vast talent pool and growing manufacturing capacity, is poised to benefit,” he added and said that the Group’s retail companies will continue to scale up.

Source link

December 29, 2024
No Fixed Terms at Tata Trusts Now, Trustees to be Appointed for Life: Report – News18

According to Business Daily, both the trusts collectively hold more than half of the shares of Tata Sons, a $165 billion company which includes shares of many well-known companies of the Tata Group. (News18 Hindi)

A Live Mint report states that in Thursday’s board meeting, it was decided that trust members won’t retire unless they resign. It was also decided that new appointments would require unanimous consent

In a significant move after the recent death of Ratan Tata, the trustees of Sir Ratan Tata Trust and Sir Dorabji Tata Trust have now become permanent members of Tata Trusts putting an end to the system of fixed-term appointments.

According to a report by Livemint, this decision was taken in the board meeting of both the trusts held on Thursday. The report said that following this move, the board members will not retire until they decide to resign and the appointment of new members will be done only after the consent of all the members of the trust.

According to Business Daily, both the trusts collectively hold more than half of the shares of Tata Sons, a $165 billion company that includes shares of many well-known companies of the Tata Group. Tata Trusts manages all the philanthropic activities of the group.

According to the report, Sir Ratan Tata Trust holds 27.98% shares of Tata Sons, while Sir Dorabji Tata Trust holds 23.56% shares of the holding firm. This was the second board meeting held by the trust after appointing Noel Tata as the head of Tata Trust on October 11. However, Moneycontrol could not independently confirm the report.

Noel Tata was appointed after the demise of corporate icon Ratan Tata. Noel Tata is Ratan Tata’s half-brother.

Tata Sons, the parent company of the Tata Group, oversees 30 firms in various sectors, including hotels, automobiles, consumer products and airlines. Tata Sons has become a global business group with the acquisition of brands such as Jaguar Land Rover and Tetley Tea in the last few years. It owns Tata Consultancy Services, Taj Hotels and Air India. It is also Starbucks’ (SBUX.O) and Airbus’s business partner in India.

Source link

October 21, 2024
Air India pays tribute to Ratan Tata with touching in-flight announcement- video – Times of India

Air India paid tribute to Ratan Tata.

The Tata group of Airlines, which includes Air India, Air India Express, and Vistara, made in-flight announcements on Thursday to pay tribute to Ratan Tata, the Chairman Emeritus of Tata Sons, who passed away Wednesday night at a Mumbai hospital at the age of 86.
The announcement was made on all flights operated by the Tata Group airlines, as per ANI sources.
In an internal communication to all employees of Tata Group of Airlines, Campbell Wilson, CEO of Air India, expressed his sadness at the news of Ratan Tata’s passing.”Dear Air Indians, it is with the deepest sadness that we receive the news of the passing of Tata Son’s Chairman Emeritus, Mr Ratan Tata. In addition to the many wide-ranging and significant contributions our Chairman Mr N Chandrasekaran has highlighted, Air Indians especially acknowledge and are grateful for Mr Tata’s immense contribution to Indian aviation and to the Tata airlines. On behalf of all Air Indians past and present, we extend our sincere condolences and respects to the Tata family and all touched by Mr Tata’s passing,” he said.
Passengers traveling on Air India flights recorded videos of the in-flight announcements and shared them on social media platforms.

As the news of Ratan Tata’s passing became public, tributes have poured in from leaders across the country, including President Droupadi Murmu, Prime Minister Narendra Modi and chief ministers of almost every state.
The Gujarat government declared a day of mourning in respect, with the national flag being flown at half-mast and no cultural or entertainment programs being held by the government on Thursday. The Maharashtra government has also declared a day of mourning.
Ratan Tata, born on December 28, 1937, in Mumbai, was the Chairman of Ratan Tata Trust and Dorabji Tata Trust, two of the largest private-sector-promoted philanthropic trusts in India. He served as the Chairman of Tata Sons, the holding company of the Tata Group, from 1991 until his retirement in 2012, after which he was appointed as Chairman Emeritus. In 2008, he was honored with the Padma Vibhushan, the country’s second-highest civilian award.

Source link

October 10, 2024
Ratan Tata Family: All about the rich legacy of Tata family | – Times of India

The Tata family, a powerful name in the global corporate sector, has long been symbolized with more than just industrial success. Beyond its corporate achievements, the Tata family is significantly rooted in philanthropic principles, creativity, and a strong dedication to societal improvement. With the tragic passing of Ratan Tata, the beloved industrialist, it is important to look deeper into the rich history and legacy of the Tata family, a name synonymous with trust, leadership, and commitment to India’s progress.

Image: Tata trusts

It all started with Jamsetji Tata

Jamsetji Tata was the founder of the Tata Group. He was more than a businessman; he was a visionary with a commitment to India’s prosperity. Born in 1839 in Navsari, Gujarat, Jamsetji envisioned industries that would not only fuel economic growth but also be beneficial for the welfare of the Indian people. His pioneering ventures in textiles, steel, and hydroelectric power laid the foundation for what would become one of the world’s largest conglomerates.

Hirabai Daboo Tata

Hirabai Daboo was Jamsetji Tata‘s wife and companion on his journey to establish the Tata dynasty. Together, they created a family that would eventually bear the mantle of leadership for generations. Her sons, Sir Dorabji Tata and Ratanji Tata, played vital parts in establishing the Tata Group’s future.

Sir Dorabji Tata

Sir Dorabji Tata, the elder son of Jamsetji, played his role in realizing his father’s dreams. Born in 1859, Dorabji not only expanded the Tata Group’s business ventures but also made extraordinary contributions to Indian sports and philanthropy. He was instrumental in setting up Tata Steel and investing in the Indian team’s participation in the Olympics, showcasing his diverse interests.
Under his leadership, the Tata Group ventured into industries like steel, electricity, and power, solidifying the group’s presence across sectors.

Image: Tata trusts

Meherbai Bhabha Tata

Meherbai Bhabha, Dorabji Tata’s wife, was a supporter of women’s education and social reform. She was an intelligent and kind woman who pushed for women’s education and opposed social problems such as child marriage. Her marriage to Dorabji in 1898 resulted in a life of travel and exploration, but her heart was always dedicated to societal improvement. Meherbai’s early death in 1931 left a legacy of empowerment, particularly among Indian women.

Sir Ratan Tata

Sir Ratan Tata, born in 1871, was the younger son of Jamsetji and carried forward the family’s tradition of philanthropy. Known for his deep concern for the underprivileged, Ratan Tata’s contributions ranged from supporting Mahatma Gandhi’s anti-apartheid movement to funding India’s first archaeological excavation. His immense wealth, much of which he donated, led to the establishment of the Sir Ratan Tata Trust, a premier philanthropic institution that continues to uplift society.
His love for the arts and commitment to research saw him contribute to the development of Mumbai’s Prince of Wales Museum and establish a chair for poverty research at the London School of Economics. Sir Ratan Tata’s legacy is deeply intertwined with India’s progress, particularly in the fields of education and social welfare.

Navajbai Ratan Tata

Navajbai Sett, Sir Ratan Tata’s wife, was a pioneer in her own right. Following her husband’s death, she took over the reins of the Ratan Tata Trust and became a powerful figure within the Tata family. She established the Ratan Tata Institute, which provided vocational training and support for underprivileged women. Her influence extended into the arts and philanthropy.

Image: Tata Group

Naval Tata

Naval Tata, an adopted son of the Tata family, was a cornerstone in the Tata Group’s leadership. Born in 1904, Naval was known for his leadership in Tata Steel and his contributions to labour relations, where he nurtured harmony between workers and management. Naval Tata’s tenure with the Tata Group spanned decades, and his impact on Indian hockey and his work in labour policies were particularly notable.
His second marriage to Simone Dunoyer brought her into the Tata fold, where she became a transformative figure in the beauty industry by founding Lakmé.

Sooni Commissariat

Sooni Commissariat, the first wife of Naval Tata, was the mother of Ratan Tata and Jimmy Tata. After her marriage, Sooni embraced the Tata name. Her life was marked by deep connections with the Tata family, including a close friendship with Meherbai Bhabha. Naval Tata and Sooni separated their ways when Ratan Tata was just 10 year old.

Ratan Tata, Chairman Emeritus of Tata Sons, passed away on Wednesday at the age of 86 in a Mumbai hospital. (Photo: Instagram @Ratantata)

Ratan Naval Tata

Ratan Naval Tata, the most recent head of the Tata Group, led the conglomerate through a period of immense global expansion. Born in 1937, Ratan Tata was the grandson of Sir Ratan Tata and son of Naval Tata. After studying at Harvard and Cornell, he joined the Tata Group, where he eventually took over as Chairman of Tata Sons in 1991. Under his leadership, the group acquired major international brands further solidifying the Tata Group’s position on the global stage.
He was not just known for his business skills but also his philanthropy. Ratan Tata’s contributions to education, healthcare, and rural development are as vast as his corporate achievements.

Jimmy Tata

Jimmy Tata, the younger brother of Ratan Tata, is a figure known for his simplicity and privacy. Despite being part of the prominent Tata family, Jimmy lives a modest life, residing in a 2BHK apartment and choosing not to own a mobile phone.
Although Jimmy holds significant stakes in Tata companies, such as Tata Steel, Tata Motors, and TCS, he avoids the limelight. His private nature has kept him out of media attention, though he shares a strong bond with his elder brother Ratan Tata.

Noel Tata

Noel Tata

Noel Tata, the son of Simone Dunoyer and Naval Tata, is another important character in the Tata family’s story. As a retail industry expert, Noel Tata was instrumental in the growth of Trent, the parent company of Westside outlets. His leadership within the Tata Group guarantees that the family maintains its influence in a variety of industries.

Leah Tata

Leah Tata, one of Noel Tata’s daughters, is emerging as a prominent figure within the Tata Group. After completing her education at the IE Business School in Spain, Leah took on significant roles in the group’s hospitality arm, particularly with the Indian Hotels Company and Taj Hotels. She has been instrumental in driving the global expansion of Tata’s hospitality businesses.

Maya Tata

Maya Tata, another daughter of Noel Tata, has established herself within the Tata Group’s digital and investment ventures. With academic credentials from Bayes Business School and Warwick University, Maya has played a very important role in the Tata Opportunities Fund and Tata Digital. One of her major achievements includes her leadership in the development and launch of Tata Neu.

Neville Tata

Neville Tata, the son of Noel Tata, is currently leading the retail arm of the Tata Group. As the head of Star Bazaar, a major retail chain operated under Trent Limited, Neville has demonstrated strong business acumen and leadership skills. His role in overseeing the operations of Star Bazaar has reinforced his position as a crucial figure in the Tata retail business.

Source link

October 10, 2024
Ratan Tata Net Worth: Despite Building Rs 33.7 Lakh Crore Business Empire Why Ratan Tata Never Made It To Billionaire List?

New Delhi: Despite his iconic stature in India Inc, Ratan Tata will be remembered first and foremost for being a true gentleman. His humble nature and sharp wit won over fans beyond industry. This, at a time when the world is obsessed with ‘lists’ of billionaires whose net worths fluctuate with each trading day. Ratan Tata never featured in any such list. Rather, he took pride in his philanthropic work, dedicating much of his time and resources to that endeavour.

Ratan Tata, the emeritus chairman of Tata Sons, is synonymous with upholding and safeguarding the best of ethics and moral values in his personal, social and professional life. Tata has to his credit managing over 30 companies with operations spread in over 100 countries across six continents. Though he was one of the world’s most influential industrialists, but he never made it to any billionaire list.

Despite Building Rs 33.7 Lakh Crore Business Empire Why Ratan Tata Never Made It To Billionaire List? In fact, philantrophy is coded into the DNA of the Tatas from the days of Jamsetji. The Tata constitution mandates that the majority of what the Tatas earn in Tata Sons be donated to Tata Trusts. This wedded the Tatas to philanthropy much before it became fashionable for businesses to donate to social causes or CSR.

Meanwhile, a Forbes report showed on Thursday that the collective wealth of India’s 100 richest tycoons surpassed the trillion dollar milestone for the first time as more than 80 per cent of the country’s richest tycoons are now wealthier than they were a year ago.

In a record-breaking year, India’s wealthiest are now worth $1.1 trillion, more than twice as rich as they were in 2019, according to the Forbes list of India’s top 100 billionaires.

According to the report, India’s wealthiest added $316 billion or nearly 40 per cent in just the past 12 months, as investor enthusiasm about the country’s growth story remains robust under Prime Minister Narendra Modi’s third term.

Source link

October 10, 2024
Remembering Ratan Tata: 5 incidents where he proved he had a heart of gold

Industrialist-philanthropist Ratan Tata was truly a class apart from the rest. He was kind and empathetic to all, including stray dogs and the voiceless animals. A social media post by an HR professional praising Mr Tata for his extraordinary principles went viral earlier this year. In a LinkedIn post from June 2024, an HR professional Rubi Khan shared how she noticed a stray dog peacefully sleeping at the entrance of the luxurious Taj Mahal Hotel in Mumbai. Amused by the sight, when she asked the hotel staff about it she was told that the dog had been a part of the hotel since its birth. “There are strict instructions from Ratan Tata to treat these animals well if they enter the premises,” the staff informed Rubi. Touched by the incident, she praised the Taj Mahal Hotel for truly valuing “every being within its walls”. In praise of Mr Tata and his ideology seen at the Taj Mahal Hotel, she further wrote, “We often speak about inclusion, biases, psychological safety, and emotional intelligence. I witnessed all these principles in action here. It’s a fine balance of head and heart, being authentic, and not worrying about what others might think as they enter this esteemed property.”

Not just this, stray dogs are welcomed at the Tata Group’s headquarters in South Mumbai, named Bombay House, too! The strays can walk-in and out freely, have shelter and food, and occasional health check-ups too, a blog on Tata’s official website states.

Photo: Ratan Tata/ Instagram

Source link

October 10, 2024
In remembrance: Ratan Tata, the visionary who transformed Indian fashion and retail – Times of India

Industrialist and entrepreneur, a much-needed source of vision behind the modern retail and fashion landscape of India, Ratan Tata died on 9th of October 2024 at the age of 86. While he dominated the retail business at Tata, some areas of his business were from sectors of heavy industry, however, his footprint on Indian fashion, retail, and lifestyle will remain one of the most enduring legacies.
Ratan Tata was innately stylish but never a fashion icon in the classical sense; he was more a catalyst for change in India about how fashion was thought of and consumed in the country. Quietly sweeping across the horizon, his influence actually democratised stylish, top-grade clothing for millions of Indians, elevated the country’s retail standards, and helped foster a new era of accessible, modern fashion.

A visionary for Indian retailOne of the greatest contributions to the Indian fashion world was made by Ratan Tata through the successful retail arm of the Tata Group: Trent Limited. Under his leadership, it became a powerhouse for India’s fashion retail. In 1998, he launched Westside, an altogether new retail brand that transformed India’s fashion landscape. Today, Westside has become a name that many Indian households recognizs- affordable, contemporary fashion for men, women and children- available across the country. Under Tata, Westside defined a new Indian retail standard for quality and design, not just in the “big city” malls but as importantly in the big shopping centres of small towns and large cities. It put fashionable clothes within the pocket of millions.
That understanding—elevating shopping to easy, beautiful, and accessible—really helped change the way Indians consumed fashion. Westside took the worldwide designs with Indian sensibilities and brought them to a new middle-class audience that wanted, for the first time, to make a statement about themselves through their clothing.

A global reach in luxury through acquisitions

Tata’s impact went much further than just India. Tata Group’s acquisition of Jaguar Land Rover and Corus Steel had already better positioned India on the global luxury map. Not directly linked to clothing, these luxury-coupled Indian businesses elevated India’s status within the discussions of craftsmanship and style-an amorphous area associated with the fashion world.
As the Tata Group ventured into investing in the luxury and lifestyle space coupled with excellence in the retail space, it was conveyed to the world that India was a country which could immediately marry heritage with cutting-edge design—a notion that also made sense in the fashion world.

Champion of Indian craftsmanship and ethical fashion

Beyond retail and global luxury, Tata also underpinned India’s rich heritage of textiles and its craftsmanship. He supported initiatives through the Tata Trusts and other philanthropic initiatives towards preserving and promoting the traditional Indian crafts in the realm of textiles, handloom, and artisanal fabrics. It helped in not only preserving jobs but restoring appreciation for Indian craftsmanship, influencing not just modern designers but also retail brands to look inward for inspiration.
It also supported sustainable and responsible fashion in ethical practice by Tata, creating a certain base for the rise of the entire eco-friendly movement pertaining to fashion in India. When environmental impact in the industry began to be more visibly sensitized, Tata Group’s initiatives were started to use more eco-friendly materials and responsible means of production, guiding the entire industry toward sustainability without clearly stating it.

A timeless style and personal elegance

While he was no sartorial trendsetter, Ratan Tata’s style exuded understated elegance and timeless sophistication. The dignified, subtle cutter-suited businessman contrasted rather starkly with the flashy fashion trends that are the hallmark of the mass-market apparel business. As the above photograph illustrates, true elegance must come from simplicity, quality, and careful attention to detail, not from style fads.
At the same time, however, many were admiring Tata because, despite his stern and classical face, he had the unique ability to project authority and warmth through calm demeanor and elegant presence. He was a role model to countless professionals and business leaders across India, and his sartorial choices underlined his larger vision of a modern, confident, and ethical India.

A lasting legacy

Ratan Tata’s legacy is no less than that of accessibility of fashionable clothing and shaping modern retail. Actually, he has had an overarching influence over Indian craftsmanship, luxury, and ethical fashion. Contributions were made to alter the experience of fashion for millions of Indians as the industry became more inclusive, innovative, and responsible.
Tata will find his place in history for the management at Tata Group, making waves in the fashion world, this time with sharper, more refined, and world-class approaches toward retailing from India. He had always believed that fashion is a tool for self-expression and pride in culture, and this will certainly be something to inspire generations to come.
The family, colleagues, and the millions of Indians whose lives he touched with his vision for a better, more stylish future- all of these remain behind, and his legacy, founded on ethical business practices, love for Indian heritage, and passion for quality, continues to reverberate in the world of fashion and beyond.
Rest in peace, Sir Ratan Tata, your vision shaped the fabric of Indian fashion for generations.

Source link

October 9, 2024
Vistara CEO may be back in Singapore Airlines with AI brass set for key roles in merged entity – Times of India

NEW DELHI: Vistara CEO Vinod Kannan could be headed back to Singapore Airlines (SIA) as the Tata Group is all set to merge this full service carrier (FSC) into Air India before the year end, say sources. SIA will have 25.1% stake in the merged AI.
The merged Vistara-AI Air India is likely to see AI current management team in most key positions. However, a senior AI official said the management structure for the merged entity is yet to be finalised.
Kannan, who is among the key players credited with Vistara’s passenger-friendly image, is a SIA veteran who had joined the mega southeast Asian carrier in 2001. Just over a decade back Tata and SIA decided to create a JV FSC in India, Vistara, which started flying in Jan 2015. Kannan was sent on secondment to Vistara in June 2019, when he was chief commercial officer Scoot (SIA LCC) and before that he was SIA VP. “He is likely to return to Singapore Airlines now as Vistara sunsets,” say sources.
“Some others on secondment from SIA in Vistara and also those from other group companies could return too,” say multiple sources.
AI is now facing increasing restiveness from passengers 2.5 years after the Tata takeover on several fronts but especially these two: poor onboard experience on old planes that received no upkeep during Maharaja’s PSU years and a tacky ontime performance. Despite very high fares (especially on international routes, and those too medium to long hauls), passengers are not beginning to feel shortchanged. Vistara was seemingly better of the two Tata Group full service carriers (other being AI) strictly from a passenger perspective and that will be gone before the year end.
“While AI turnaround is the most challenging exercise in contemporary aviation, it has to improve quickly otherwise passengers will be doubly unhappy with Vistara being disbanded when AI still had a very long way to go. Many people are now wondering if the medicines being given for curing AI of chronic illnesses are working. Tatas must review this as there is a lot at stake,” said multiple stakeholders of AI, including frequent flyers.
About 2-3 years after it started flying, the then FSC leader in India – Jet Airways – started to decline before eventually shutting down in 2019. Vistara then emerged as the most passenger friendly (though not for overworked and stressed pilots who recently had to protest to be treated humanely) airline in India.
Sources say a “farewell” is being planned for brand Vistara.

Source link

July 13, 2024
RIL gears up to enter quick commerce space – Times of India

MUMBAI: Mukesh Ambani’s Reliance Industries is all set to enter the quick commerce space to take on Zomato’s Blinkit, Tata Group‘s BigBasket, Swiggy‘s Instamart and Zepto. Reliance Retail’s JioMart could launch the service as early as next month, sources told TOI.
To begin with, JioMart will deliver groceries in at least 7-8 cities and eventually scale up the service to cover over 1,000 cities.The development comes a little over a year after the company discontinued its 90-minute grocery delivery service JioMart Express. The plan now is to fulfil deliveries under 30 minutes, the sources said. Reliance Retail did not respond to queries.

Reliance’s move comes at a time when Walmart’s Flipkart is also gearing up to foray into the quick commerce space, a concept which has found rapid traction, particularly among millennial and Gen Z households. Blinkit, Swiggy and Zepto service deliveries of groceries and a range of non-grocery items in 10-15 minutes. Unlike incumbent players, JioMart will not adopt a dark store model for its quick commerce operations but instead tap into Reliance Retail’s vast network of stores and fulfilment centres.
As of now, JioMart offers slotted and next-day delivery options to customers. “Over time, JioMart will also deliver non-grocery items through quick commerce,” sources said, adding that this is where it can effectively tap into Reliance Retail’s over-18,000-stores across categories and formats. “JioMart is focused on hyper local omni-channel presence and continues to serve its customers from thousands of stores located in proximity to consumers across the country,” said a source aware of the company’s strategy.
Reliance’s entry into quick commerce will intensify competition in the space and players will have to contend with the company’s pan-India reach and deep pockets. Currently, Blinkit leads quick commerce with about a 40-45% market share. Goldman Sachs estimates the size of online grocery market in terms of gross order value to be about $11 billion as of FY24 of which, quick commerce already makes up about 50% or $5 billion in GOV. Analysts also say that instant deliveries may well be eating into the share of kirana store purchases.

Source link

May 28, 2024