Tata Communications selling data center business

Sonal Desai
New Update

MUMBAI, INDIA: At a time when the data center market in India is booming, it is learnt that Tata Communications is planning to 74 percent stake in its subsidiary Tata Communications Data Center.


Indicative of the company’s intent, Tata Communications in a communiqué to the Bombay Stock Exchange asserted that the company is exploring various strategic options for its data center infrastructure business in India and potentially Singapore.

“Tata Communications has retained Jefferies LLC to advise the Company in connection with exploring these strategic alternatives. As with any business, the Company continually reviews its capital allocation and portfolio. Data center services and managed service offerings play will continue to play an important role in the company’s strategy and any move will ensure that these strategic propositions to our customers are not diluted,” the company said.

It added that it will honor all contractual commitments made to customers.


While the company is yet to announce its results for FY2014-15, as per its 2014 annual report, the data center subsidiary returned a net profit of Rs 23 crore for FY2013-14 on revenue of Rs 375 crore.

“In the long run, unless the company is able to raise equity funding, its ability to raise additional debt funding may be restricted. This, in turn, could adversely affect the capital expenditure program in the long run,” the company mentioned in the annual report.

Tata Communications Data Center has facilities in Delhi, Mumbai, Bengaluru, Chennai, Kolkata and Pune and provides services in the US, the UK and Singapore. It owns over 1 million sq ft of data center and co-location space across 44 global locations and also has eight partner sites in Australia, Malaysia, Germany and the Netherlands, according to the company’s website.

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