Tata Global Beverages restructures international operations for increased business effectiveness

Tata Global Beverages restructures international operations for increased business effectiveness
10 September 2018 443 words 2-MINUTE READ
News Category
restructure
international-business
cost
synergy
The restructure will lead to better synergies, cost optimization and increased focus on core business
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Tata Global Beverages (TGB) continually evaluates its businesses across geographies in line with its strategy and business objectives. As a result of a recent review, the company has restructured its international operations in order to unlock synergies for the business, optimize costs and streamline operations.

  • Restructure of EMEA and CAA business units: The erstwhile EMEA (UK, Europe, Middle East and Africa) and CAA (Canada, Australia, and Americas) units of TGB have been merged into a single unit called the International Business Division, with experienced country heads in key markets, reporting into a single head, Adil Ahmad for the International Business Division. This will build greater alignment across the company and better cost efficiency. Adil has been with TGB since 2015 as Chief Marketing Officer. He has played a key role in developing a strong portfolio of global brands with a focus on overall brand health, profitability and premiumization. 
  • Exit from non-core/unprofitable markets: TGB has exited non-core and sub scale markets in order to better focus on its core markets. In Russia, the company has restructured its operating model, it has divested its stake in plantations in Sri Lanka, and exited its joint venture business in China.
  • Outsourcing back office processes: The company has also identified back office processes in Human Resources, Finance and Operations, and outsourced the management of these back office processes to Tata Consultancy Services (TCS). These processes are now being handled from the TCS Development Centre in Kolkata. This will result in cost savings, increase business efficiency and build digital capability for the business. This transition will enable our business managers to wholly concentrate on core business activities, growth and expansion.

    Ajoy Misra, MD & CEO, said “Tata Global Beverages’ ambitious growth plans requires us to operate with greater efficiency, reduce our cost base and fully tap the potential synergies across our businesses that operating on a global scale can bring us. This restructure will help us better focus on core markets and better leverage growth opportunities.”

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    About Tata Global Beverages

    Tata Global Beverages is a global beverage business with presence in over 40 countries. The Company has significant interests in tea, coffee and water and is the world’s second largest tea company. 330 million+ servings of its brands are consumed everyday around the world.  Tata Global Beverages Group has an annual turnover of approximately US$1.4bn (includes JVs and associates) and it employs around 3,000 people. The Company focuses on natural beverages and has a stable of innovative regional and global beverage brands, including: Tata Tea, Tetley, Himalayan natural mineral water, Tata Water Plus and Tata Gluco+, Good Earth Tea and Eight O’clock coffee. For more information please visit www.tataglobalbeverages.com