A subsidiary is a business that operates under the control of another business. The parent or holding company is the ‘other’ company.
A subsidiary may either be built from the ground up or acquired.
Since the parent corporation owns a large amount of shares in the subsidiary, it has the ability to exert control over it.
A wholly-owned subsidiary is one in which the parent company owns 100 percent of the shares in the subsidiary.
Adani Logistics Ltd, for example, is a wholly owned subsidiary of Adani Ports and SEZ Ltd.