Kolkata, July 5 : Tata Global Beverages Ltd (TGBL) would focus on scaling up its product lines, company chairman N.
Chandrasekaran said on Thursday.
Amid speculation on a restructuring proposal to merge the Tata Group's food and beverages businesses into a single company, he said there was "no concrete proposal" but its board would deliberate if such a plan is placed before it.
"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 terms, we continue to be number one in the Indian market, we can't say the same in value terms," Chandrasekaran told shareholders at the 55th Annual General Meeting of the company.
"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."
Responding to queries of 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."
According to him, the beverages major "has 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.
TGBL's consolidated revenue from operations in the last financial year was at Rs 6815 crore, clocking a marginal growth over previous year.
"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," he said.
"International market has not grown. In fact some of the markets have de-grown," Chandrasekaran said.
Reiterating further on scale up focus, he said: "Essentially, TGBL has to scale.
(For) each one of the product lines (green tea, water) we need to figure out way to scale and partially also look for acquisition where there is presence of opportunity.
India growth rate is better but international growth rate is pulling down. The focus will be to increase the growth rate," he said, adding that unless and until, the company scales, "it is not going to help".
According to him, growth and scale in domestic market would be acritical' for the company.
TGBL holds a 20 per cent market share in the domestic branded tea market and around 3-4 per cent share of the coffee market.
On investment opportunities in West Bengal, Chandrasekaran said that the Tata group is committed to the state and looking for a "right opportunity".
"Tata Group is committed to West Bengal and we just wait for right opportunity.
We have good presence of TCS and companies like TGBL and Starbucks. When the opportunity comes, we will definitely invest in the state."
--IANS
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Source: IANS
