Tata Tea is in the process of restructuring its US operations with a view to bringing down costs substantially, a top official of the company official said today.
The company is consolidating its manufacturing facilities which would be run under a unified entity, Tata Tea Managing Director Percy Siganporia told reporters here.
Tata Tea markets brands like Tetley, Goodearth and 8'o Clock Coffee in the US market.
He said that the company's strategy towards the US market is that of cost management.
Tata Tea is following different strategies in the various markets of the US, Britain, Canada and India, he added. In Canada, the strategy followed by Tata Tea is that of product innovation.
In standalone operation in India, he said that the company had been able to protect the bottom line while the top line growth was followed aggressively. India contributed to nearly 26 per cent of Tata Tea's overall revenue.
He said a top executive team of Tata Tea has been relocated to the UK. "The chemistry works better when the top executive team stays at the same location."
Siganporia would relocate himself from Kolkata to the UK.
In the UK market, he said, the company had been able to maintain volume and eliminated expensive promotional campaigns
The company had also repositioned the Tetley brand in which it has a 30 per cent market share.
Siganporia said although the company had built up a war chest of funds, the company had not accelerated the acquisition agenda in the last 12 months.
"The cost of acquisition in the last 12 months would not have been in favour than in the coming 12 months," Siganporia said.
Talking of other markets overseas, he said that Russia was an area of great potential.
Tata Tea was also in the process of restructuring Chinese operations.
The company recently inducted two non-independent directors on its board.
