Tata Global Beverages has restructured its international operations by merging its businesses in Canada, America and Australia (CAA), and the UK, and Europe, Middle East and Africa (EMEA) into a single unit called the International Business Division to build greater alignment across the company and improve better cost efficiency.
The group in an exchange filing said that it has exited non-core and sub-scale markets in order to focus better 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.
Ajoy Misra, managing director and CEO, said “Tata Global Beverages’ ambitious growth plans require 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.”
The company also said it has outsourced the management of back office processes in human resources, finance and operations to Tata Consultancy Services in Kolkata.
Shares of Tata Global Beverages rose 0.47% to Rs 224.30 at 1.52pm in intraday trade as the benchmark Sensex fell 0.80% to 38,081.81. Tata Global Beverages has an annual turnover of approximately US$1.4bn (includes joint ventures and associates) and it employs around 3,000 people and operates in 40 countries.