labels: tata group, foods / beverages
Tata Group to get into food retail news
05 July 2007

Mumbai: The Tata Group will soon begin food retailing after the group''s entry into processed foods with the acquisition of 70-per cent stake in Innovative Foods from the Amalgam Group.

The group may sell food products, including fruit and vegetables and baked food, through a chain of retail stores.

Residency Foods and Beverages, a subsidiary of the Tata Group''s hotel arm, Indian Hotels Company, the vehicle for acquiring a stake in Innovative Foods last year has also acquired 80-per cent equity in Kochi-based seafood exporter Amalgam Foods and Beverages.

Residency has already entered into an agreement with Jasper Aqua Exports, a Vizag-based seafood company, which will manufacture products exclusively for the Tata company''s product portfolio.

R K Krishnakumar, Indian Hotels'' vice-chairman, had said at the time of Innovative stake acquisition: "The IFL acquisition and our agreement with Jasper outline the company''s strategic intent for the processed foods business. We strongly believe in leveraging our in-house expertise in the group with FMCG, F&B and retail businesses."

Tata group''s planned foray into food retail may be in synergy with its TAJ SATS Air Catering and hotel business a joint venture between Indian Hotels and Singapore Airport Terminal Services, a subsidiary of Singapore Airlines.

TAJ SATS Air Catering has a commanding 60 per cent share of the airline catering market in India.

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Tata Group to get into food retail