Tata Tea is undergoing a makeover that will result in the company growing 10-fold in terms of turnover to Rs1,000 crore, five years from now. The vision for the company is to transform itself as a global beverages leader rather than a tea company as it is perceived at present, says Ratan N Tata, Tata Group chairman.
Addressing shareholders at the company's Annual General Meeting for 2008-09 Tata said the change was being considered for Tata Tea in order to "reflect the diversified portfolio beyond tea" that includes bottled water and health drinks.''
In order to achieve the vision of becoming a global beverages leader the company is making moves to merge all its subsidiaries and associates into a single cohesive entity.
Krishna Kumar, vice chairman of Tata Tea said even though Tata Tea's operations were spread across the globe, the vision was to have one cohesive company. According to Kumar, ''An international consultant is working on the new name and logo of the company, which will spread the message that Tata Tea is truly a global beverages firm.''
That's not all. Krishna Kumar said Tata Tea was sitting on liquid cash worth Rs 1,700 crore and was looking for a big acquisition globally mainly in the US and was also open to the idea of JV and partnerships.
According to Kumar, ''There will be one corporate entity under which there will be several brands like Tetley, Jemca, Good Earth, Eight O' Clock and others. This is part of the company's financial integration plan, which will make it more cost-efficient,'' he explained.