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Corporate Umbrella

Updated on March 2, 2023

Corporate Umbrella is the term used to describe an established brand that is at the helm of various small businesses or business streams under its brand name and provides guidance and credibility to such businesses. They may or may not be involved in the key business decisions or operations of the smaller business but can provide financial backing or use of the brand name to seek additional funding for the businesses under their brand name.

Benefit of having a corporate umbrella

The benefit provided by the corporate umbrella to smaller businesses is access to a larger and more diverse customer base as well as access to funds when needed to expand the operations on account of the well-established brand name. The corporates in turn benefit from the returns provided by these businesses in the long run by becoming a brand of their own (for example, Tanishq under the corporate umbrella of Tata Group).