Tatas will discontinue Tata Health after seven years.

Tata Industries incubates new ventures for the $128 billion Tata Group . Tata Industries is pulling the plug on the healthcare services division of Tata Health .

Mumbai (India): More than seven years since its inception, Tata Industries, which incubates new ventures for the $128 billion Tata Group, is pulling the plug on the healthcare services division of Tata Health.Customers have been informed that Tata Health's digital health services will be available through Tata 1MG (which is owned by the sister company Tata Digital) from October 1.According to a source familiar with the decision, Tata Health is closing down because it hasn't scaled up its business model.Its health check-up services, online doctor consultation, and e-pharmacy services have been largely restricted to a single city Bengaluru.

Tata Sons, the promoter of Tata Industries and Tata Digital, said that it is better to divert funds to the bigger of the two platforms rather than supporting two separate businesses that are similar in scope.It is India's largest healthcare portal, covering more than 1,800 cities, according to Tata 1MG's website.It has over 260 million visitors and 31 million orders.Tata Digital has invested more than Rs 1,160 crore in a 63% stake in Tata 1MG (formerly 1MG).

According to the employee, Tata Health employs 150-200 people, many of whom have been relocated to Tata 1MG and other Tata Group businesses.At the time of going to press, an email sent to Tata Industries executive director K R S Jamwal did not get a response.