Tata Global Beverages will continue to focus on its core sectors of branded tea, coffee and enhanced water over the next five years.
There is a huge opportunity in the core sector business, which is growing substantially, both in the domestic and overseas markets, and the company would like to leverage it, said Ajoy K Misra, Managing Director and CEO.
Around 70 per cent of the company’s $1.5-billion turnover comes from tea, while 20 per cent comes from coffee and the rest from its enhanced water, plantation and extraction businesses.
The company has a comfortable share in the global branded tea market and hopes to replicate this in the branded coffee segment, which is growing faster overseas than in the domestic market, Misra said.
He was interacting with reporters after the inauguration of the DARE (Development Activities in Rehabilitative Education) School, an initiative of Srishti, supported by Tata Global Beverages, at Munnar, Kerala.
There are many challenges and opportunities in the market, such as changing consumer trends and competition from other brands, he said.
“The growing consumption of branded tea, coffee and enhanced water (with nutrients) in matured markets gives us the confidence to look forward while, at the same time, the current economic slowdown in the US and European markets poses a major concern, affecting consumer sentiment,” he added.
Misra said the growth of green tea the world over would be in double digits, while black tea will grow by 6-8 per cent in India.
Tata Coffee has now set up a roasting unit and an instant coffee unit, Misra said.
Its joint venture with Starbucks has plans to expand the network of outlets from the present 46. The acquisition of the coffee brand MAP in Australia will help the company expand its offerings in that country, he added.
Instant tea
Instant tea is another focus area. Besides instant tea factories for black tea in Munnar and Florida, it has entered into a venture with a Chinese firm for green tea to cater to the US, Europe and parts of Asia.
Apart from making powder from tea extracts for the US and European firms to make iced tea, the venture will place more emphasis on green tea as a category and other specialties, said Misra
He said Tata Global sources over 100 million kg of tea every year from major plantations in the North and South, and also from South Africa, for the Tetley brand. Tetley also has joint venture operations in Pakistan and Bangladesh.
In the bottled water segment, which is growing at 20 per cent, Tata Global has taken its premium sourced mineral water — the Himalayan brand — to Singapore and will extend it to neighbouring geographies shortly.
Likewise, Tata Water Plus, which is currently available in Tamil Nadu and Andhra Pradesh, will be taken to Gujarat and other States.
(The writer was in Munnar at the invitation of Tata Global Beverages)