MUMBAI: Tata Consumer Products has initiated restructuring of overseas operations as well as merger of three subsidiaries in India in a bid to streamline its corporate structure. Currently, it has 40 subsidiaries, two joint ventures and two associate companies.
Tata Consumer’s international operations are mainly a result of its historical acquisitions like Good Earth herbal tea and Eight O’Clock coffee brands in the US.
It is transferring the manufacturing and distribution of instant tea powder business in the US under Tata Tea Extractions and the Eight O’Clock coffee investments, also in the US, under Consolidated Coffee to Tata Consumer Products US Holdings (TCP-US). Once transfers are completed, Tata Tea Extractions and Consolidated Coffee will cease to exist. It is further consolidating the branded business in the US by merging five entities into TCP-US. On completion of the restructuring, the US business will be held by Tata Consumer Products UK Group – a 100% arm of the Indian parent. The restructuring is expected to be completed by Dec 31, Tata Consumer said in its FY24 report.
The move is expected to reduce the number of legal entities, simplify operational layers and create a unified holding structure for the US branded business and improve market focus, the foods & beverages company, helmed by Sunil D’Souza said.
Further, Tata Consumer is merging three subsidiaries in India – Tata Consumer Soulfull (acquired in 2021), Tata SmartFoodz (also purchased in 2021) and NourishCo Beverages (bought out Pepsico’s 50% stake in the company) – with itself. This will further reduce the number of legal entities, lessen compliance requirements and help in creating economies of scale, the company said. It has already completed the merger of Tata Coffee (read: the coffee business) with itself. The coffee plantations business, however, has been separated from Tata Coffee and housed under TCPL Beverages & Foods.
Chairman N Chandrasekaran, in his address to shareholders in the FY24 report, said that the acquisition of Capital Foods and Organic India has the potential to substantially expand the company’s total addressable market into adjacent high-growth categories.
Tata Consumer’s international operations are mainly a result of its historical acquisitions like Good Earth herbal tea and Eight O’Clock coffee brands in the US.
It is transferring the manufacturing and distribution of instant tea powder business in the US under Tata Tea Extractions and the Eight O’Clock coffee investments, also in the US, under Consolidated Coffee to Tata Consumer Products US Holdings (TCP-US). Once transfers are completed, Tata Tea Extractions and Consolidated Coffee will cease to exist. It is further consolidating the branded business in the US by merging five entities into TCP-US. On completion of the restructuring, the US business will be held by Tata Consumer Products UK Group – a 100% arm of the Indian parent. The restructuring is expected to be completed by Dec 31, Tata Consumer said in its FY24 report.
The move is expected to reduce the number of legal entities, simplify operational layers and create a unified holding structure for the US branded business and improve market focus, the foods & beverages company, helmed by Sunil D’Souza said.
Further, Tata Consumer is merging three subsidiaries in India – Tata Consumer Soulfull (acquired in 2021), Tata SmartFoodz (also purchased in 2021) and NourishCo Beverages (bought out Pepsico’s 50% stake in the company) – with itself. This will further reduce the number of legal entities, lessen compliance requirements and help in creating economies of scale, the company said. It has already completed the merger of Tata Coffee (read: the coffee business) with itself. The coffee plantations business, however, has been separated from Tata Coffee and housed under TCPL Beverages & Foods.
Chairman N Chandrasekaran, in his address to shareholders in the FY24 report, said that the acquisition of Capital Foods and Organic India has the potential to substantially expand the company’s total addressable market into adjacent high-growth categories.