From just a tea and related beverages company, Tata Global Beverages Ltd (TGBL) is now gearing up to become a premium consumer products company, top company officials said, adding that’s where scalability lies.`
"In the FMCG segment, we need a large portfolio. We cannot just be a single tea player and depend on it to attain scale. Tea, water-these things are good but they are not going to give scale. The company has to gain scale by wide range of products,” said N. Chandrasekaran, TGBL chairman, while addressing the company’s annual general meeting in Kolkata on Tuesday.
And as the company sets out on its journey to become a diversified consumer products company, TGBL will focus more India’s domestic market and only a handful of select overseas markets. "We need to focus on India and select overseas markets. We are looking at each part of the country more carefully and a lot of work has happened in this regard….We want to build a very high-class, premium consumer products company by leveraging the large consumer base in India. That is the goal that we are working towards," said Chandrasekaran.
Interestingly, TGBL and Tata Chemicals Limited (TCL) have recently announced the de-merger of the consumer products business of the latter into the former. And now the company wants to gain scale and focus on India market as they announced the combination of food business of Tata Chemicals and TGBL’s business to create broader consumer product company to epxand the portfolio.