TGBL needs core portfolio innovation for faster growth:ChandrasekaranPTI | New Delhi | Updated: 15-05-2019 19:15 IST | Created: 15-05-2019 17:30 IST
Tata Global Beverages Ltd (TGBL) will require innovation in its core portfolio and scaling up business in chosen geographies in order to move up to a far higher trajectory of growth, according to its chairman N Chandrasekaran. Addressing the company's shareholders in its annual report for 2018-19, Chandrasekaran said the company, which sells branded tea, coffee and water products, including Tata Tea, Tetley, Tata Coffee Grand and Himalayan, sees a huge opportunity in India for accelerated growth of consumer-packaged goods.
"Overall, a core challenge ahead of the company lies in leveraging its strong assets, including its brands, its deep category expertise and sales networks, to move up to a far higher trajectory of growth," he said. This will require innovation in the core portfolio and scaling up the business in chosen geographies, he added.
For the future, Chandrasekaran said, "Tata Global Beverages will focus on taking the right strategic actions and building a strong set of future-focused capabilities and platforms to seize these opportunities. "We have a strong brand portfolio, backed by the power of the Tata brand, which will help us achieve our aspirations for the future."
He further underlined potential opportunities in India. "The large India opportunity, over the years ahead, will see tens of millions of Indian consumers across this vast country, aspire to use reputed brands that offer them very good quality and value," he said.
Further, he added, "This will undoubtedly lead to accelerated growth in India for several categories of consumer-packaged goods, including tea, coffee and water." Across the world," the trend towards health and wellness will also ensure that these natural beverages continue to grow as preferred drinks", Chandrasekaran said.
In 2018-19, he said the Indian branded tea market, which is at the core of the company's business not only witnessed healthy growth but also increased competition. "The company has worked intensively at strengthening its position during the year, by focusing on its flagship brands such as Tata Tea Premium through enhanced brand investments, and also through multiple new blends of tea customised for the tastes of each region," Chandrasekaran added.
In the UK, where Tetley is a strong brand, the business has been affected by the continued de-growth in the black tea market, he said but added that Tetley was taking several steps to address the challenge. In the US, he said the company has to craft the right strategy for its branded coffee business which recorded lower levels of performance compared to the previous year.
"The branded coffee market in the USA has witnessed consolidation over the past few years and re-crafting the Eight O'Clock coffee business in this new environment is critical to its growth and success," he said. In 2018-19, the company has recorded revenue from operations of Rs 7,252 crore with a net profit of Rs 457 crore.