Tatas pump in more to CLiQ and grow

KOLKATA: The Tata Group has infused Rs 231 crore into its three-year-old ecommerce business, Tata CLiQ, so far this fiscal and has increased authorised share capital of the venture from Rs 1,150 crore to Rs 1,500 crore indicating more funds will be infused into the business, latest regulatory filings showed.As per filings made to the Registrar of Companies (RoC) by Tata Unistore — the entity which owns and runs Tata CLiQ — it had last increased its authorised share capital a year back when it took it up from Rs 775 crore to Rs 1,150 crore.Analysts said the company is not generating enough cash to sustain itself and hence increasing the share capital.“Considering the funding requirements of the company to enable it to run its business effectively are intended to be mobilised through the issue of the equity shares of the company, the board of directors have recommended that the authorised share capital of the company to be increased from Rs 1,150 crores to Rs 1,500 crores,” Tata Unistore said in its filings.Tata Industries Ltd is the parent entity.Mohit Yadav, founder at Veratech Intelligence, which analysed Tata Unistore’s RoC filings, said exactly a year back the company increased its authorised capital and once again now in September.“The 16% hike in current CEO Vikas Purohit’s remuneration along with retention bonus shows management is content with growth. It is, therefore, safe to assume that going by the current trend, by September 2020, the Tatas will infuse around Rs 280 crore further into the company,” said Yadav.As per filings, Purohit’s annual gross remuneration in 2018-19 was Rs 1.16 crore. Tata Unistore said Purohit has extensive experience in e-commerce industry and has been instrumental in achieving the budgeted numbers for the company in FY18.In response to an email, the company’s media relation agency said the Tata Unistore spokesperson declined to offer comment.Tatas have been consistently ploughing money into the ecommerce business. In 2018-19, Tata Industries invested Rs 292 crore, Rs 224 crore was invested in FY18 and another Rs 172 crore in FY17. The business has seen losses mounting every year. As per RoC filings, Tata Unistore net losses jumped 18% to Rs 246.75 crore in 2018-19, while it more than doubled total income to Rs 110.75 crore. In FY18, Tata Unistore’s net loss was Rs 208.4 crore, while total income was Rs 41.7 crore.

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