Tata Global Beverages (TGBL) is not planning any foray outside its well-established core business of tea, coffee and enhanced water, Ajoy Misra told the press last week. TGBL managing director & CEO was speaking on the sidelines of the inauguration of new premises of ‘development activities in rehabilitative education’ for differently-abled children in Munnar, an initiative of Srishti, a CSR wing of the company.
“We are not saying that we will not enter into that segment at all. But for the time being, we don’t want to lose focus on our core area and want to exploit its full potential.
The company wants to grow bigger in coffee, which at present contributes only 20 per cent of the total revenue compared with 70 per cent by tea,” Misra said.
To this aim, Tata plans to build a larger portfolio of coffee products, including single-serve packs, along with a broader push upmarket to boost profitability.
Misra said TGBL, with $1.5-billion turnover, has made several acquisitions abroad in the tea and coffee segments and will continue to look for mergers and acquisitions as part of growth strategy.
TGBL also plans to extend its network of cafes under Tata Starbucks joint venture. The outlets are branded Starbucks “A Tata Alliance” and they serve coffee that is 100% locally sourced supplied by Tata.
Source: The Economic Times
