Tata Chemicals’ FMCG business merged with Tata Global Beverages

Through this combination, we have created a strong growth platform to meet the growing aspirations of Indian consumers,” said N Chandrasekaran, chairman of Tata Sons. 

NEW DELHI: Tata Group on Wednesday transferred all its branded food businesses to Tata Global Beverages Ltd (TGBL) from Tata Chemicals Ltd (TCL) as part of its larger mandate to streamline business of similar synergies that will aid in improving efficiency while cutting down costs.
“The boards of directors of Tata Global Beverages Limited and Tata Chemicals Limited at their respective meetings, have approved the de-merger of the consumer products business of TCL into TGBL through a National Company Law Tribunal approved scheme of the arrangement,” the companies said in a BSE filing. Pursuant to the scheme, each shareholder of TCL will get 1.14 new equity shares of TGBL for every 1 equity share held in TCL, i.e., a shareholder holding 100 shares in TCL will receive 114 shares in TGBL. 

The proposed transaction will create a focused consumer products company with a combined turnover of `9,099 crore and an EBIDTA of `1,154 crore. “The combination of the two consumer-focused businesses will benefit both sets of shareholders who will be able to participate in a larger business poised to grow their share of the foods and beverages market with a broader exposure to the attractive and fast growing FMCG sector,” the statement said. The deal would also see rechristening of TGBL as Tata Consumer Products Limited and will combine key brands such as Tata Salt, Tata Tea, Tata Sampann and Tetley under a single umbrella. 

“Tata Consumer Products consolidates our current presence in food & beverages in the fast-growing consumer sector. Through this combination, we have created a strong growth platform to meet the growing aspirations of Indian consumers,” said N Chandrasekaran, chairman of Tata Sons. 

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