MUMBAI: Tata Industries, which incubates new ventures for the $128-billion Tata Group, is pulling the plug on the healthcare services business offered under Tata Health more than seven years after its launch.
The company has informed customers that the digital health services offered by Tata Health will be available through Tata 1MG (which is run by sister concern Tata Digital) from October 1.
It is discontinuing Tata Health as it hasn’t scaled up its business model, a source in the know said. Its health check-up packages, online doctor consultation and e-pharmacy services have been largely restricted to one place — Bengaluru. Further, its offerings overlap with the facilities provided by Tata 1MG, which was majority-acquired by Tata Digital last year.
Also, Tata Sons — the promoter of Tata Industries and Tata Digital — thinks that rather than supporting two businesses that are similar in nature, it is better to channelise resources to the larger of the two platforms, the source explained. According to Tata 1MG’s website, it is India’s largest healthcare platform covering more than 1,800 cities. It has over 260 million visitors and has delivered more than 31 million orders.
Tata Digital has invested more than Rs 1,160 crore for a 63% stake in Tata 1MG (formerly 1MG). It has the option to buy the remaining 37% stake from 1MG’s founders and other shareholders in the near future. Tata Health employs 150-200 people and several of them have been moved to Tata 1MG and other Tata Group entities, the person said. An email sent to Tata Industries executive director K R S Jamwal didn’t elicit a response till the time of going to press.