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| Tata Global Beverages plans restructuring |
| BS Reporter / Kolkata Aug 24, 2010, 00:58 IST |
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Ratan Tata says would like to increase stake in key companies.
Tata Global Beverages, formerly Tata Tea, is considering restructuring the company’s operations at various levels and aiming to launch a new nutrition-based beverage, according to top officials.
“We are looking at restructuring of the whole company at various times and without making any comment one way or another, these kind of issues get addressed as we move forward,” Ratan N Tata, chairman of Tata Group, said today on the sidelines of the company’s annual shareholders’ meeting.
Tata Global Beverages could also look at merging like businesses in terms of rationalisation of the company’s operations. “At some time when we believe there is size and scale to warrant a merger, we will look at it,” Tata said on merging of Tata Coffee and Mount Everest.
 The company was looking to develop a new beverage based on nutrition and wellness, he said, but did not elaborate.
“During the year, the major issue has been the change of name of the company and that explains them basically to better reflect the business of the company, which in the years going forward will be more involved beverage company eventually, possibly even into foods and not merely a tea company as it has been,” Tata said. The entry into foods could be through acquisitions.
The group would like promoter holding to increase to 51 per cent in key companies. At present, promoter holding in Tata Global Beverages is 35.38 per cent.
The only avenue available was the creeping acquisition route at five per cent a year, Tata said, while adding, “Our aim is, in fact, to increase stake in key companies.”
Earlier in his address to shareholders, Tata said Tata Global Beverages was aiming for revenues of $5 billion in the next five years, from the present $1.5 billion. Last year, it had set a target to achieve $10 billion revenues in the next five years.
“Over the next five years, we are looking to grow our Ebitda (earnings before interest, tax, depreciation and amortisation) levels by 15 per cent year-on-year,” he said.
No mention of Singur
Singur did not find a place in Ratan Tata’s lexicon, even though his views on investment in West Bengal remain unchanged.
“This year, we still hope to open and dedicate a cancer centre in Kolkata, which we hope will save many lives in this part of the country. We have not changed our views in terms of investment. In fact, we have increased investments in the hospital and I hope once the hospital comes, those elements in Kolkata that may feel alien towards us will understand that we are still very much Indians and West Bengal is very much a part of our total corporate identity,” Tata told shareholders, without making any direct references to the agitation that drove out the iconic Nano project in 2008.
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