Coffee beans are displayed in a coffee outlet in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Tata Global Beverages Restructures Overseas Operations

Tata Group firm Tata Global Beverages Ltd. today said it has restructured its overseas operations by merging its businesses in Canada, Australia, Americas, Europe, Middle East and Africa.

It has also sold its plantations in Sri Lanka and shut its joint venture business in China, according to its exchange filing.

The restructuring will lead to better synergies, cost optimisation and increased focus on core business.
Tata Global Beverages Statement

The company said EMEA and and CAA units have been merged into a single unit called the international business division, with experienced country heads in key markets, reporting into a single head, Adil Ahmad, for the division. The company said it has also identified back office processes in human resources, finance and operations, and outsourced the management of these to Tata Consultancy Services.

“Tata Group has a large number of companies and we are in many sectors, primarily because the Tatas went into businesses which were needed to build India,” Tata Sons Chairman N Chandrasekaran told Bloomberg in an interview a few days ago, adding that all the companies will be operating through different segments.

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Here are the edited excerpts from the conversation:

When you are through (with the consolidation), would it have a holding company, kind of Berkshire hatchway style company that owns investments?

You can’t model the Tata group vis-à-vis some other group. The way to look at it is we have three big companies which are auto, steel and IT. We had big verticals in financial services, consumer, retail, infrastructure, defence and aerospace.

In defence and aerospace, we are consolidating everything into a single company. And then we have tourism sector. Broadly, those are the teams. Some of these companies are a one-company vertical and for some, there would be two or three.

Your recent results show a strong jump in profits. Which of these verticals is driving it?

All our companies are focusing on growth, profits and cash flows. TCS has done remarkably well and continues to do very well. Tata Steel did very well last year. In Tata Motors, apart from Jaguar, the Indian business has also started to deliver profits. Our retail business is doing incredibly well.