Tata group to shift its food and beverage to Tata Global

The Tata group which is a $104 billion business plans to have a new round of consolidation two months after restructuring the company under 10 different bylines. The consumer products are to be shifted from Tata Chemicals to Tata Global as part of the picture to bring food and beverages under one wing.

Food and beverage TGBL

Food and beverage TGBL

Tata coffee may also get merged under this wing as Tata is looking to streamline its operations under the consumer and retail vertical. Some verticals created by Chandrasekharan include information technology, steel, automotive, infrastructure, financial services, telecom and media, and aerospace and defence.

The group has already consolidated operations of companies under aerospace and defence in a bid to improve synergies and is expected to do the same across other verticals. The consolidation in the consumer vertical is part of this exercise, persons in the know said. The Rs 1,847-crore consumer products business of Tata Chemicals, which includes food brands such as Tata Salt and Tata Sampann, contributed 16.35 per cent to the company’s top line in fiscal 2018-19 (FY19). Contribution to profit before interest and tax was nearly 18 per cent at Rs 314 crore in the year under review.

The coming together of food and beverages under Tata Global is to help the latter to really grow, which had been contemplating a foray into that space for a few years now. To be sure, the move to get into foods was first mooted during Ratan Tata’s chairmanship, but was never executed as TGBL chose to consolidate its core beverage business after a string of acquisitions between 2000 and 2010 largely in foreign markets.

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