 "Indian consumer goods companies to be hit hard")
Britain’s referendum on Friday to exit the European Union (EU) will hit Indian consumer goods companies operating there. Key among them are firms such as Tata Global Beverages (TGBL), TTK Prestige and Godrej Consumer (GCPL). The three derive 18 per cent, 10 per cent and five per cent of their consolidated revenues, respectively, from the UK.
When contacted, TGBL said its stand was consistent with what the Tata group had to say about the issue. The group’s holding company, Tata Sons, had earlier in the day said it would review its strategy and operations in light of the current developments. “There are currently 19 independent Tata companies in the UK with diverse businesses. Each company continuously reviews its strategy and operations. Access to markets and to a skilled workforce will remain important considerations,” Tata Sons had said.
TGBL, for the record, derives 65 per cent of its consolidated revenues from abroad. The UK is the third-largest contributor to TGBL’s consolidated revenue after the US & Canada (38 per cent) and rest of the world (19 per cent), according to its 2014-15 annual report. TGBL’s 2015-16 annual report has not been released yet.
The Tata group’s expansion into the UK, in fact, began with the acquisition of Tetley by TGBL (then called Tata Tea) in 2000. The Rs 1,870-crore deal, billed as the largest overseas Indian buyout by a company then, set the ball rolling for more acquisitions by not only the Tata group, but allied Indian firms.
When contacted, TGBL said its stand was consistent with what the Tata group had to say about the issue. The group’s holding company, Tata Sons, had earlier in the day said it would review its strategy and operations in light of the current developments. “There are currently 19 independent Tata companies in the UK with diverse businesses. Each company continuously reviews its strategy and operations. Access to markets and to a skilled workforce will remain important considerations,” Tata Sons had said.
TGBL, for the record, derives 65 per cent of its consolidated revenues from abroad. The UK is the third-largest contributor to TGBL’s consolidated revenue after the US & Canada (38 per cent) and rest of the world (19 per cent), according to its 2014-15 annual report. TGBL’s 2015-16 annual report has not been released yet.
The Tata group’s expansion into the UK, in fact, began with the acquisition of Tetley by TGBL (then called Tata Tea) in 2000. The Rs 1,870-crore deal, billed as the largest overseas Indian buyout by a company then, set the ball rolling for more acquisitions by not only the Tata group, but allied Indian firms.
GCPL, for instance, acquired Keyline Brands in the UK in 2005 taking its first big step to expand abroad. Keyline was a popular personal care maker in the UK with brands such as Cuticura (talcs, cosmetics, toiletries) and Erasmic (men’s toiletries). Though valued at Rs 120 crore, it gave GCPL access to the UK market to push its hair colour and soap brands, analysts tracking the firm said.
