Tata Global Beverages Ltd (TGBL) will now focus on extension and scaling up its product lines – bringing in new products, said N Chandrasekaran, chairman, TGBL. “The focus of the company going forward will be to try and scale specific platforms and operations and also capture the growth in the Indian market. Even though in volume term, we continue to be number one in the Indian market, we can't say the same in value terms. So there will be focus to bring growth in the India market by a combination of focusing on market share, number of new products that reflect the macro trend,” said Chandrasekaran.
In a separate context, Chandrasekaran, who was here to address the 55th annual general meeting of the company in the city, said that the company was yet to have any concrete proposal with regard to merger of Tata Group’s food and beverages businesses into a single company. Interestingly, the market grapevines had it that the company was working on a restructuring proposal to merge the group’s food and beverages business into one entity. “There is no concrete proposal in this regard as yet. But the board would deliberate if such a plan is placed before it,” he said.
Responding to volley of questions from the shareholders on the speculation of merger of food businesses, he said: “Tata Group has presence in multiple different consumers segment. Always the proposals and the ideas get discussed... these proposals sometimes come from investment bankers, sometimes internally. There is no concrete proposal. Whenever there is concrete proposal in front of the board, it will deliberate on it.”
He said that the beverages major had been trying out and launching products in various spaces in line with macro trends of premiumisation, off-take in wellness space and others but company’s growth suffered due to “marginal presence” in many international markets.
Meanwhile TGBL’s consolidated revenue from operations in the last financial year stood at Rs 6,815 crore, clocking a marginal growth over previous year. On the financial performance of the company, the TGBL chairman said, “When you analyse the numbers the growth continues to suffer because of marginal presence in many international markets... one of the actions that have been taken is to exit from small operations. During the year the company exited from China and Sri Lanka and operations in Russia has been restricted. International market has not grown. In fact some of the markets have de-grown.”
The chairman said, “Tata Group is always committed to West Bengal and we are just waiting for the right opportunity. We have good presence of TCS and companies like TGBL and Starbucks. When the opportunity comes, we will invest in the state.”