India’s largest conglomerate, Tata Group has completed the re-branding of its consumer production business. From now onwards, Tata Global Beverages Limited will be formally called as Tata Consumer Products Limited (TCPL).
The formation of the new entity, according to Tata, marks a new strategic direction, an accelerated expansion into India’s Fast-Moving Consumer Goods (FMCG) market, while also maintaining a leading and strategic presence in the international beverages market.
“Tata Global Beverages Limited (TGBL) and Tata Chemicals Limited (TCL) announced that the scheme of arrangement between TGBL and TCL regarding the consumer products business of TCL is now operational, effective from February 7, 2020,” the company said in a statement. Currently, India’s FMCG market is being dominated by two major players — ITC and Hindustan Unilever Limited. Brand Tata is mostly confined to tea and salt segments.
“In India, Tata Consumer Products’ bouquet of consumer brands will benefit from the scale of its iconic brands, including Tata Tea and Tata Salt, reaching more than 200 million households. This deep distribution architecture will also be supported by the Tata Group’s brand building prowess,” Tata said.
Announcing the development, N Chandrasekaran, chairman, Tata Sons, said, “The merger of the consumer businesses of Tata Chemicals and Tata Global Beverages Limited under Tata Consumer Products consolidates the group’s presence in the fast-growing consumer sector. Tata Consumer Products would be in a unique position to leverage the strong brand, wider product portfolio and distribution reach to serve the growing aspirations of consumers across the country.”
Going forward Tata intends to build on the strong platform provided by its market leading positions in tea and salt by investing in research and development, branding, marketing, manufacturing and distribution to create a stronger and larger food and beverage platform.
“The company’s innovation capabilities, product portfolio and distribution reach positions it well to meet evolving consumer needs across the food and beverages spectrum,” it said. As announced in December 2019, Sunil D’Souza will take over as the MD and CEO of Tata Consumer Products with effect from April 4, 2020, after Ajoy Misra’s retirement.