Tata Global to fo­cus on do­mes­tic, se­lect over­seas mar­kets

DNA (Daily News & Analysis) Mumbai Edition - - FRONT PAGE - —PTI

Kolkata: Tata Global Bev­er­ages Ltd (TGBL) said on Tues­day it will fo­cus more on the do­mes­tic mar­ket and se­lect over­seas ones, as the com­pany be­gins con­sol­i­dat­ing into a di­ver­si­fied con­sumer prod­ucts ma­jor.

“We need to fo­cus on In­dia and se­lect over­seas mar­kets. We are look­ing at each part of the coun­try more care­fully and a lot of work has hap­pened in this re­gard,” TGBL chair­man N Chan­drasekaran said at the AGM.

Chan­drasekaran said he ex­pects the com­ple­tion of the pro­posed trans­fer of Tata Chem­i­cal’s con­sumer busi­ness to TGBL to take place in the next 12-18 months.

“I would be happy if it hap­pens in the next 12 months,” he said. Fol­low­ing the trans­fer, TGBL will have branded ed­i­ble salt, pulses and spices in its prod­uct port­fo­lio.

TGBL is likely to be re­named as Tata Con­sumer Prod­ucts after the restruc­tur­ing, which will see its turnover “rise 25%”.

“In the FMCG seg­ment, we need a large port­fo­lio. We can­not just be a sin­gle tea player and de­pend on it to at­tain scale. The com­pany has to gain scale through a wide range of prod­ucts,” Chan­drasekaran

TATA GLOBAL BEV­ER­AGES

said in his ad­dress to share­hold­ers.

“We need to move up the value chain and en­ter high­value seg­ments... build a high-class, pre­mium con­sumer prod­ucts com­pany by lever­ag­ing the large con­sumer base in In­dia. That is the goal that we are work­ing to­wards,” he said.

Chan­drasekaran said the com­pany is plan­ning to cut down on the num­ber of sub­sidiaries, and could also exit more over­seas mar­kets like Rus­sia.

Tata Cof­fee will not be merged with TGBL for now, he added.

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