We are not looking at acquisitions right now: Ajoy Misra, MD & CEO, Tata Global Beverages

In a strategic move, the Rs 7,819- crore Tata Global Beverages (TGBL) is planning to co-create products with other Tata group companies in areas such as ambient beverages. The company is in discussion with group companies and is working with scientific institutes across the globe to innovate through co-creation. After its mineral water brand ‘Himalayan’, TGBL has inducted Tata Tea into its global brands list. To sell its Tata Tea brands in Canada, the company is leveraging its existing distribution network and retail strategy in Canadian markets. In an exclusive interview with FE’s Lalitha Srinivasan, Ajoy Misra, managing director and CEO of TGBL, talks about future plans. Excerpts:

How do you plan to sustain TGBL’s leadership in the branded tea markets in India?

Our emphasis will be on the quality of our tea brands and their blends. We want to sell  our  brands at the best possible prices. This strategy will be backed by effective brand building, advertising, social cause-related marketing like ‘Jaago Re’ and distribution plans. At present, we are market leaders both in terms of value and volume in this sector. With introduction of ‘Tata Tea Acti Green’, we aim to reach out to a wider consumer base.

Tell us about TGBL’s co-creation plans with other Tata group companies.

As a company focused on innovation, we will look at leveraging expertise both within the company and outside to create exciting products for our consumers in the natural beverages space. We are in discussions with other Tata group companies. To  innovate through co-creation, we are working with scientific institutes across the world. Since the discussions are at a preliminary stage, we will not be able to share further details.

After introducing ‘Himalayan’ in  Singapore,  you have taken Tata Tea to Canada. Are you planning to launch TGBL’s other brands in global markets?

Right now, we are growing our home-grown brands  — Himalayan and Tata Tea — in international markets and this is a huge opportunity. We don’t have plans currently to  take Tata Coffee’s packaged brand, Mr Bean to international
markets.

To market Tata Tea brands in Canada, are you looking at acquisitions there?

Specifically for the Tata tea brand, we are leveraging our existing distribution and retail expertise in markets like Canada to sell Tata Tea products. We are not looking at the acquisition route currently.

With correction in commodity prices, is TGBL revising prices of its tea brands?

Price changes depend on various factors — consumer demand, brand positioning, etc, in addition to commodity costs. We believe in giving consumers quality products, at the right price point. TGBL has a portfolio of brands which straddle consumer segments and price points.

Is TGBL looking at cross-selling opportunities of its  global acquisitions in India and overseas markets?

We will enter markets at a time when we  foresee an opportunity in terms of consumer demand, trend and preferences. We have to ensure our products, blends and flavours are designed to suit the palate of consumers in that particular geography. For example, Tetley is available in India in flavours customised for the Indian palate. Currently, we continue to focus on strengthening the presence of  Eight O’clock and Grand in US and Russia.

After TGBL’s alliances with Starbucks and PepsiCo India, are you looking for  joint ventures or  acquisitions?

Our partnership with Starbucks is an effort to provide beverage moments for consumers in the coffee category. NourishCo, a 50/50 JV between TGB and PepsiCo, was formed to strengthen and grow our water portfolio in India. Strategic alliances will fall in place when we foresee a right opportunity, be it in India or outside.