Tata Digital CEO Intensifies Efforts on Costs, Business Integration

9 Apr 2024 , 10:40 AM

According to Tata Group executives, Naveen Tahilyani, who took over as CEO of Tata Digital in February, has tightened spending controls in the e-commerce sector and implemented greater accountability and a sharper data-focused approach to operations. Tahilyani, who is tasked with providing impetus and executional weight to the digital e-commerce business, is taking a more hands-on approach, according to authorities.

Tahilyani, who was recruited by Tata Sons chairman N Chandrasekaran from the group’s insurance subsidiary Tata AIA Life Insurance, is also introducing a collaborative mentality to smooth out operational issues and increase engagement from group companies, according to corporate insiders.

Since starting on the new post in February, Tahilyani has been carefully steered by Chandrasekaran, who wants to see the consumer app develop traction before pursuing external investor interest.

Simultaneously, Tata Digital’s online pharmacy 1mg is likely to expand significantly offline, building retail locations where it would sell drugs and provide medical lab testing services, according to people familiar with the situation. The idea was approved at a recent board meeting.

“The strategy is in place, and Naveen has discussed the next steps with leadership from both 1mg and BigBasket. One of the individuals listed above stated that work is being done on Tata Neu’s loyalty pass, NeuPass. Another individual stated that the budget for 1mg for offline expansion will be decided later this month.

“So far, the consumer industry expertise has been evident in our discussions, and the strategies outlined are well-defined. Overall, the objective is to achieve sustainable growth, whether it pertains to private investments or potential IPOs for digital assets such as BigBasket,” commented sources.

Previously, there was concern inside Tata Digital that various companies were not permitted to make autonomous operational decisions, resulting in friction and operational delays, Tata group executives said.

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