Tata Tea will be a beverage and food company, said Ratan Tata, chairman Tata Tea, at the company’s annual general meeting.
Addressing shareholders, Tata said that the company was looking at acquisitions to complement its product range. Without clarifying the segment in which Tata Tea was eyeing acquisitions, Tata said that the acquisitions would be strategic that would add particular strength, footprint in another country or access to technology.
“Mergers and acquisitions, or investments would be made, which make strategic value for us,” he said.
Responding to queries, on whether Tata Tea would consider changing its name, Tata said that the complexion of the company had changed from a mere tea company and the company would consider it.
Speaking on the sidelines, R K Krishna Kumar, vice-chairman, Tata Tea said that the company was eyeing markets in America and Russia in a big way and could even look at acquisitions.
Tata Tea would also look at spread and expanding its wellness range. The company was now a complete global company with 42 brands in 45 countries.
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Over the last few years Tata Tea and its subsidiaries had transformed into a branded beverage company. The consolidated turnover of the company and all its subsidiaries was Rs 4,432 crore, of which 90 per cent was contributed by the group’s worldwide branded tea and coffee business.
Divesting its exposure in plantations had made Tata Tea a more stable company. Ratan Tata said, “There was much greater volatility when we had plantations. We will not have big peaks or big losses,” to the shareholders.
The reconstruction scheme envisages equity participation by strategic investors like IFC, Infrastructure Leasing & Finance Corporation, Globally Managed Services and Tata Investment Corporation, apart from Tata Tea.