Tata Global Beverages -- the joint venture operator of Starbucks in India -- will soon be on the lookout for talent as the company embarks on business expansion.
A Tata group company is scouting for talented people to expand the business after the latest consolidation move brought all its consumer-facing businesses under one umbrella. Tata Global Beverages — the joint venture operator of Starbucks in India — will soon be on the lookout for talent as the company embarks on business expansion after merging Tata Chemicals’ consumer products business with itself, MD and CEO Ajoy Misra told CNBC TV 18. Tata Global Beverages will be rechristened to Tata Customer Products after the merger. Further, the company will be looking to launch new products, while it expects a synergy of 2-3% from the combined India business, he added.
The group’s latest move is expected to expand its FMCG business from food to other segments. Ajoy Misra also said that the deal with Tata Chemicals is a step towards aggressive growth. Tata had recently launched the Sampann range of pulses, spices and besan which was seen as a stepping stone in the company’s larger plans to move beyond food. “Tata Chemicals’ recent product launches suggested intent to move beyond food,” a recent Kotak Institutional Equities report said. Moreover, Tata Consumer Products is seen as a de facto driver to grow Tata’s ambitious B2C business plans, the report added.
Strong rival for HUL has emerged
With previous creations, acquisitions and partners including Himalayan waters, Tetley and Starbucks, the company is seen as a strong contender to HUL and is touted to become the next HUL. “It has a very high potential of becoming a business with a well-rounded consumer portfolio on the lines of HUL,” N Chandramouli, CEO at TRA Research Advisory told Financial Express Online.
Tata Chemicals had announced on Wednesday that the company’s consumer-facing business will be demerged from TCL to eventually be merged with Tata Global Beverages. “The proposed transaction will create a focused consumer products company with a combined turnover and EBITDA of Rs 9,099 crore and Rs 1,154 crore respectively,” the company said in a regulatory filing.