September 10, 2018

Tata Global Beverages restructures international operations for increased business effectiveness

The restructure will lead to better synergies, cost optimisation and increased focus on core business

Tata Global Beverages (TGB) continually evaluates its businesses across geographies in line with its strategy and business objectives. As a result of a recent review, the company has restructured its international operations in order to unlock synergies for the business, optimise costs and streamline operations.

  • Restructure of EMEA and CAA business units: The erstwhile EMEA (UK, Europe, Middle East and Africa) and CAA (Canada, Australia, and Americas) units of TGB have been merged into a single unit called the International Business Division, with experienced country heads in key markets, reporting into a single head, Adil Ahmad for the International Business Division. This will build greater alignment across the company and better cost efficiency. Adil has been with TGB since 2015 as chief marketing officer. He has played a key role in developing a strong portfolio of global brands with a focus on overall brand health, profitability and premiumisation.
  • Exit from non-core/unprofitable markets: TGB has exited non-core and sub-scale markets in order to better focus on its core markets. In Russia, the company has restructured its operating model, it has divested its stake in plantations in Sri Lanka, and exited its joint venture business in China.
  • Outsourcing back office processes: The company has also identified back office processes in human resources, finance and operations, and outsourced the management of these back office processes to Tata Consultancy Services (TCS). These processes are now being handled from the TCS Development Centre in Kolkata. This will result in cost savings, increase business efficiency and build digital capability for the business. This transition will enable our business managers to wholly concentrate on core business activities, growth and expansion.

Ajoy Misra, MD and CEO, TGB, said “Tata Global Beverages’ ambitious growth plans requires us to operate with greater efficiency, reduce our cost base and fully tap the potential synergies across our businesses that operating on a global scale can bring us. This restructure will help us better focus on core markets and better leverage growth opportunities.”