The Tata group has revived its plan to merge Tata Realty and Infrastructure (TRIL) with Tata Projects, a scheme that had been set in motion some years back but was not taken forward, sources said.
The business of TRIL comprises of a real estate component consisting of residences and offices, while under the infrastructure and urban solutions division it manages roads in Hampi, Durg, Uchit and Pune, Solapur and Dharamshala skyway, the first ropeway by Tata group and Pune Metro.
Sources said that a merger would bring all infrastructure assets and construction related activities under one roof.
An email sent to Tata Sons spokesperson remained unanswered.
Merger plans
While the merger plans are still nascent, sources said that one of the options being considered was to carve out the infrastructure portion from TRIL and demerge into Tata Projects, an engineering, procurement, and construction company that undertakes big construction projects.
The other option is to merge TRIL with Tata Projects with real estate and infrastructure as separate verticals. The reorganisation of realty and infrastructure started in 2018, when the commercial real estate and housing businesses were combined together.
Last year, it acquired 56.98 per cent stake in Tata Development Housing Company, which has now become its subsidiary from an associate.
In FY24 TRIL’s commercial assets reported a turnover of ₹678 crore, its residential segment saw sales of ₹1677 crore, while under its infrastructure segment toll income from roads were at ₹750 crore, according to the company’s annual report.
Tata Projects is a larger entity and one of its most high-profile projects was the New Parliament building in Delhi. More recently it completed the Mumbai Trans Harbour Link, a 6-lane road bridge connecting the island city to Navi Mumbai.
At the end of FY24 it had an outstanding order book of ₹36,780 crore on a standalone basis, while it booked orders worth ₹10,331 crore during the year, according to its annual report. It reported a net profit of ₹139 crore in the year and gross income of ₹17,248 crore.