The revelations also underline the change of ownership of Infiniti Retail: the company is now owned by the group’s new e-commerce entity, Tata Digital. It was earlier under Tata Sons until a few months ago. However, there is no specific regulatory filing on how the transfer was made.
Analysts said the change is being undertaken for better integration of Croma’s e-commerce business with TataNeu Group’s super app, given that nearly three-fifths of e-commerce sales in India are generated through mobile phones, laptops, and smartphones. laptops and electronic devices.
Transfers from Infiniti Retail’s holding company are being made through a secondary sale of shares and details are not filed with the RoC, said Mohit Yadav, founder of business intelligence firm AltInfo.
“Tata’s decision to place Croma under Tata Digital now, coupled with this borrowing limit increase, shows Tata Group’s aggressive intention for expansion. The strategy for winning the ongoing retail war seems to be focused on being a key player by leveraging their ubiquity and bringing together multiple products and offerings under one roof,” Yadav said.
An email sent to Infiniti Retail went unanswered.
In filings, Infiniti said that given the company’s aggressive expansion plans and to meet increased financial requirements for budgeted capital expenditures, the board approved and set the borrowing limit. overall at Rs 3,000 crore.
Infiniti Retail earlier told ET that it opened 32 new stores in FY21, bringing the total number to 193, with another 90 stores scheduled to open in FY22. Expansion plans for FY23 were not shared.
In a separate material beneficial owner filing, Infiniti Retail disclosed that the holding company is Tata Digital. Pratik Pal, CEO of Tata Digital, has served on the board of Infiniti Retail since FY21. Even last April, Infiniti Retail had raised Rs 250 crore from its holding company Tata Sons.
The company had reported a 5% increase in its total revenue in 2020-21 to Rs 5,449 crore, while its net loss decreased by 1% to Rs 201 crore. Reliance Digital, a chain of electronics stores owned by Reliance Industries, is the largest electronics chain in the country.