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Current Affairs

CCI clears BigBasket-Tata digital deal

Date: 01 May 2021 Tags: Miscellaneous

Issue

The Competition Commission of India has approved Tata Digital to acquire online grocery deliver platform BigBasket.

 

Background

The value of the deal is about $1 billion. It will put to an end to the speculation running from the past six months.

 

Details

  • Tata digital will get control over the B2B unit of BigBasket by acquiring 64.3% of Supermarket Grocery Supplies Pvt Ltd. The B2C unit Innovative Retail Concepts Pvt Ltd will also be completely taken over.

  • Tata has a large presence in various consumer goods such as electronics, fashion etc through TataCliq but is yet to enter grocery business.

  • It will provide BigBasket the necessary power to compete with industry leaders such as Reliance Mart, Filpkart and Amazon.

 

The e-grocery market

  • The e-grocery segment is worth $300 billion. It received a boost during the current Covid crisis but is yet to penetrate more than 1 percent of grocery space in India.

  • The total e-grocery segment size has grown rapidly from $1.2 billion at the start of 2020 to about $3 billion at the end.

  • Other major and minor players in the e-grocery segment include Amazon, Reliance Mart, Flipkart, Grofers, Milkbasket, Nature’s basket, Easyday etc.