Tata Group mulls entry into nourishing foods

The Tata Group is mulling entry into the nourishing foods and nourishments segment, Group Chairman, Mr Ratan Tata said here on Tuesday. Mr Tata, however, did not elaborate on the product segment or portfolio.

“There will come a time when there will also be a possible entry into nourishing foods and nourishments of all sorts,” Mr Tata said while addressing shareholders during the Annual General Meeting of Tata Global Beverages Ltd (formerly Tata Tea Ltd).

According to the Tata group supremo, the company was targeting $5 billion in revenues and has introduced several new products under specific brands.

It is also going through a transformation to be a truly global beverages and food company based on health, nutrition and wellness, he said.

Joint Ventures

Tata Global Beverages has entered into a joint venture with Starbucks to supply tea and coffee globally. The venture would also explore joint retail opportunities through Starbucks outlets, Mr Tata said. Senior company officials said that the joint venture is likely to be finalised soon.

The company has also entered into a 50-50 venture with Kerala Ayurveda for developing wellness beverages and food products made from Ayurveda recipes and formulations, he added.

Stake Increase

Replying to shareholders' queries, Mr Tata hinted at a possible increase in stake in different companies of the group.

However, increasing holdings through preference shares is not the usual practice in the group, he added.

“The plan is to increase holdings in our companies. We are restricted by creeping norms. However, we do not usually increase holdings through preference shares. But, we will continue to increase holdings as an when we can,” Mr Tata said.

Replying to shareholders' queries, Mr Ratan Tata hinted at a possible stake increase in different group companies.

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