Big consolidation awaits ecommerce industry as Alibaba, Tata may enter into a partnership

If the Alibaba-Tata deal breaks through, this would mark a new high in the Indian online industry.

The Chinese ecommerce giant is looking to set shop in India and there is a possibility that it will enter into a partnership with Tata Sons for the same.

As per reports, Alibaba Group president Michael Evans and global managing director K Guru Gowrappan spoke with Cyrus Mistry.

"It will take two quarters for Alibaba to finalise a joint venture partner. It may or may not go with the Tata Group in the end but they are definitely talking. They would have discussed initial deal contours beyond online retail,” a person privy with the matter told ET.

Experts say this would mark a big change in the Indian ecommerce industry.

"We have been exploring very carefully the ecommerce opportunity in this country, which we think is very exciting against the backdrop of Digital India," said Evans.

In the past, Tata Group has launched several brands in India.

"Tatas are the best match for Alibaba given the scale and capabilities both these players possess. Alibaba is keen to create a strong back-end network before launching its online portal,” a person told ET.

Meanwhile, both the brands will complement each other in the growth story.

Tatas have a record of maintaining cordial relations with its partners and will give boost to Alibaba plans in terms of infrastructure, etc.

"Alibaba needs to bring its stake to a level when it can control the consolidation process seamlessly in these three businesses. It may not happen in the short term but there will be a serious consideration for such a move after few years," Ruchi Sally, director at retail consultancy firm Elargir, told ET.