Tata Power may cut number of arms for better profitability

MUMBAI: Tata PowerNSE -1.12 %, the country’s largest integrated power company, has drawn a blueprint to collapse several of its estimated 95-plus subsidiaries with an eye on profitability and a nimbler operational structure.

The company will initially focus on breaking down the wholly-owned subsidiaries to be part of the main operational businesses and will later look at joint ventures, a top official close to the development said. Tata Power will seek shareholders’ approval for the restructuring which will take several months, he said, adding the company may keep the subsidiaries to less than 20.