INDIA – The Kolkata based multinational non-alcoholic beverages company, Tata Global Beverages Ltd has announced that it would exit loss-making subsidiaries but has plans to maintain subsidiaries in certain locations due to legal issues, according to an article by ET Retail.
The company told shareholders at the annual general meeting that it was focusing on growth, remains committed to the country and is looking for the right opportunity to invest.
The main plan is to have subsidiaries which can be scaled up and are profitable as it is important to pick up growth rate and grow profitably as well as foster growth in the domestic market.
“The whole idea is to have subsidiaries which can be scaled up and are profitable,” said Tata Global Beverages Chairman N Chandrasekaran.
“It is important to pick up growth rate and grow profitably.
Growth in the domestic market is required, mix of product portfolio is critical and is going to be a big focus for us.”
Tata said it is targeting both organic and inorganic growth with plans to invest US$21.83 million as well as an additional US$43.67 million that is currently going on.
Tata Global Beverages’ market share in the domestic tea market was 20%, while it was three to four per cent for coffee.
Chandrasekaran revealed that regarding the Tata Starbucks outlets, each store takes two to three years to achieve break even, but the coffee chain as a corporation had already achieved the same.
“We have good presence of TCS and companies like TGBL and Starbucks are present (in West Bengal). When the opportunity comes, we will definitely invest in the state,” he said.
In the last fiscal year, the company posted a flat revenue growth of 1% and in international markets, growth continued to suffer because of marginal presence in many overseas countries.
On prospects in West Bengal, the top company official said the Tata Group is committed to the state and looking for the “right opportunity” in terms of investment.