Tata Digital Relocates HQ from Mumbai’s Fort to Lower Parel: A Move to Save Rs 2 Crore Monthly Rent
Tata Digital is set to move its headquarters from the historic Fort area in South Mumbai to a smaller office in Lower Parel, saving approximately Rs 2 crore in monthly rent. This strategic relocation also aims to enhance operational efficiency and align with the company's future plans.
Tata DigitalLower ParelFort HouseCost SavingsRelocationReal Estate MumbaiMay 27, 2025
The company will vacate its six-floor office in Fort House, located in the Fort area, and move to a three-storied office in One International Centre (OIC) in Lower Parel. The move is expected to be completed by the end of July.
This strategic relocation is estimated to save Tata Digital around Rs 2 crore in rent each month, or approximately Rs 24 crore annually. Currently, Tata Digital pays a monthly rent of around Rs 3 crore for its Fort office. In contrast, the new office in Lower Parel will have a monthly outgo of about Rs 1 crore, translating to significant cost savings.
The decision to relocate to Lower Parel was not solely driven by financial considerations. Tata Digital’s CEO, Naveen Tahilyani, resides in Lower Parel, and the move will significantly reduce his travel time, allowing him to be more present at the office. However, it is worth noting that Tahilyani recently announced his departure from the company, and a successor has yet to be appointed.
Tata Digital has also been flexible about where its employees work from, especially in light of the smaller office space. The company has given its Mumbai-based techies the option to relocate to Bengaluru, where they can work closely with Chief Technology Officer (CTO) Vinay Vaidya. Vaidya, who previously worked at Amazon, is based in Bengaluru, the tech capital of India. This move also provides employees with more job opportunities, as Bengaluru is home to several key rivals such as Flipkart, Amazon, Swiggy, and Zepto.
Tata Digital’s decision to relocate comes just a year after renewing its lease agreement for another three years. While the current lease agreement is valid until April 2027, the lock-in period ended in April, allowing the company to vacate the space without incurring a penalty.
Fort House, the current headquarters, is a heritage property owned by Dawat-e-Hadiyah, a charitable trust of the Dawoodi Bohra community. The building, which was previously owned by the Videocon Group, was acquired by the trust in 2017. Fort House boasts around 1.5 lakh square feet of office space and is located in the Fort area of South Mumbai, a historic central business district.
Most buildings in the Fort area are heritage structures dating back to the British Era, including prominent landmarks such as the Mumbai Port Trust, Maharashtra Maritime Board, Prince of Wales Seamen's Club, and BMC headquarters. The relocation to Lower Parel marks a significant shift for Tata Digital, aligning the company’s operational needs with its financial and strategic goals.
Frequently Asked Questions
Why is Tata Digital moving its headquarters to Lower Parel?
Tata Digital is moving to Lower Parel to save around Rs 2 crore in monthly rent and to align with operational efficiency. The new location is also closer to CEO Naveen Tahilyani's residence, reducing his travel time.
How much money will Tata Digital save with this move?
Tata Digital is expected to save approximately Rs 2 crore in rent each month, or Rs 24 crore annually, with the move to Lower Parel.
What are the options for Tata Digital's Mumbai-based techies?
Tata Digital has given its Mumbai-based techies the option to relocate to Bengaluru, where they can work closely with CTO Vinay Vaidya and have more job opportunities in the tech capital.
When is the expected completion date for the relocation?
The move to the new office in Lower Parel is expected to be completed by the end of July.
What is the significance of Fort House in South Mumbai?
Fort House is a heritage property owned by Dawat-e-Hadiyah, a charitable trust of the Dawoodi Bohra community. It has around 1.5 lakh square feet of office space and is located in the historic Fort area of South Mumbai.
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