Tata Global Beverages to focus on profitable subsidiaries; exit loss-making ones

July 6, 2018

Chairman of Tata Global Beverages Ltd, N. Chandrasekaran is planning to exit loss-making subsidiaries and focus on profitable ones that can be scaled up. But due to legal issues, the company would have to maintain subsidiaries in certain locations.
Actually 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. Growth in the domestic market is required. Mix of product portfolio is critical and is going to be a big focus for Tata Global Beverages.
Tata Global Beverages’ market share in the domestic tea market was 20 per cent, while it was three to four per cent for coffee. The company would make an investment of Rs 150 crore in addition to the ongoing capex of Rs 300 crore,
Regarding the Tata Starbucks outlets, N. Chandrasekaran  said that each store takes two to three years to achieve break even, but the coffee chain as a corporation had already achieved the same.

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