Tata considering merging Tata Global Beverages and Tata Coffee
Tata Coffee could be merged with Tata Global Beverages as the Tata Group seeks to strengthening its fast-moving consumer goods sector, according to insiders. Tata Group, which has denied the reports, is also said to be ramping up Tata Global’s European operations, which make up 25% of its revenues.
In a bid to improve efficiency and consolidating operations, Tata Group is exploring a merger of Tata Global Beverages and Tata Coffee. The group is weighing the pros and cons of a possible merger between the two entities, reports CNBC-TV18's Kritika Saxena. If the deal looks favourable, Tata Coffee will be merged into Tata Global Beverages. It will help the Group amplify synergies of both the companies together, persons privy to the developments told CNBC-TV18. Tata Group is also aiming at strengthening its fast moving consumer goods (FMCG) segment by way of the merger, they said on the condition of anonymity. The primary focus will be on improving efficiency at Tata Global Beverages and consolidation of operations. Besides, the Group is aiming to ramp up Tata Global’s European operations, which contribute 25 percent to its revenues. Tata Global Beverages, however, said that there is no such proposal under consideration. In an earlier interview, Tata Global Beverages Chairman Harish Bhat had said the group is focusing on the FMCG segment, where it already has a strong footing. The company also has a vision of stronger brands in tea, coffee and water.

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