India Inc's Demerger Wave: Tata, Raymond, Vedanta Lead the Charge

The Indian corporate landscape is witnessing a strategic shift with big conglomerates turning to demergers to release value and improve business concentration.

 

Key learnings from the latest trend:

 

1. Tata Motors will be demerged into two listed entities—one in the commercial vehicle space and the other in the passenger vehicle space, including Jaguar Land Rover. Listing is planned in Q3 FY26.

 

2. Raymond demerged its property and lifestyle businesses a while back. Raymond Realty, with a 100-acre landbank in Thane and six joint development agreements worth ₹40,000 crore, will go public next month.

 

3. Vedanta is undergoing huge structural change, unbundling into six sector-facing enterprises: Aluminium, Oil & Gas, Power, Steel & Ferrous Materials, Base Metals, and Vedanta Ltd. Experts opine that the combined market cap of the units will be greater than the current valuation of ₹1.75 trillion.

 

4. Aditya Birla Lifestyle Brands had last traded on the exchanges after demerging from Aditya Birla Fashion and Retail. It now has marquee brands like Louis Philippe and Van Heusen with a valuation of nearly ₹20,000 crore.

 

This demerger push, seen also at Siemens and ITC earlier in the year, reflects a broader movement towards operational transparency and shareholder value creation.

 

Sources: Economic Times, ET Now, Business Standard, Moneycontrol.