Tata Global to pump Rs 150 crore in FY16

Tata Global Beverages Ltd is planning a capex of Rs 150 crore on a consolidated basis in the current fiscal, its chairman Cyrus Mistry said here today.
He said the company would continue to invest in its power brands to stay future-ready.
Tetley, Tata Tea, EOC Coffee and Himalayan are the key brands on which the company is focusing, he said replying to shareholders at the AGM.
Investment in branding is one of the reasons for lower profits despite higher revenues, besides volatility in eastern Europe.
Business of the company in India, Canada and Australia was good during previous year, but China and eastern Europe subsidiaries and ventures did not do well.

TGBL's non-cash impairment losses amounted to Rs 95 crore relating to business in China and eastern Europe.

Mistry said the company is planning to restructure Russian business and the China venture is yet to get stabilised.
Instant tea production has stabilised but prolypoylene production hasn't and so technically, the operation has not yet stabilised, he said.
About the operation of the coffee chain Tata Starbucks, Mistry said the venture would break even only after it attained a certain scale to cover the costs.
Currently, Tata Starbucks has 72 stores in the country and there was no plan to open outlets in Kolkata as of now.

Among new launches, Super Green Tea under the Tetley brand was rolled out in the UK and the company might consider introducing the same in India. But, Tata Global has no plan for another international premium brand Teapigs in the domestic market, he said.