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Tata Tea aims to transform into global beverage group |
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Beverages major Tata Tea has started integrating its various global businesses operationally with an aim to transform the company into a global beverages group. The new operational structure is modelled on the lines of multinationals such as Unilever`s global operating structure.
Even though, the integration process has started, it isn`t yet clear whether the united entity would be a local firm or an international company, said company officials. They also denied any immediate plans for financial integration of its entities, three of which are listed.
R Krishna Kumar, currently, vice-chairman of Tata Tea will be responsible for stewarding Tata Tea in the Tata Group, according to a company release. The management said the group would focus on global joint ventures and acquisitions of global and regional brands wherever it makes strategic sense.
The move to merge various beverages businesses such as tea, water and soft drinks under a single entity is likely to facilitate fund-raising, simplify operational issues, cut costs, ensure efficient global sourcing, bring economies of scale and help the group leverage distribution strength.
According to Tata Tea officials, the move would help Tata Tea compete globally, with companies such as Coca Cola, Pepsi and Unilever in the beverages business. The group plans to expand into new geographies and diversify from tea and coffee and build positions in the high growth areas of the `good for you` $160-billion beverage market through strong product innovation, said Peter Unsworth, CEO of Tetley group.
Mr. Unsworth said, "Tetley, Tata Tea, Good Earth and Himalayan will be the brands with global focus while the regional brands are Vitax, Jemca, Eight O`Clock Coffee, Tata Coffee, Chakra Gold and Kanan Devan. We have diversified from black tea to water; ready to drink tea, tea infusions, red tea and organic tea."
He added, "We are looking to expand the reach of Himalayan mineral water in South Asia. Our acquisition of a company in Russia will give us an entry into the European market for all our products. We are also in the process of restructuring our US operations and consolidating them to one single office."
(Posted on : 13/06/2009)
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| Tata Tea aims to transform into global beverage group |
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