In 2-3 years, expenditure on brand promotion will zoom: R Krishna Kumar

Interview with Vice-chairman, Tata Global Beverages

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R K Krishna Kumar, Tata Sons director and a confidante of former Tata Group chairman Ratan Tata, is set to retire on July 18. Days before his retirement, Kumar, also vice-chairman of Tata Global Beverages Limited (TGBL), recounts the challenges, as well as his dreams. Excerpts:

Are you happy with where Tata Global Beverages is today?
Of course we are happy! Everybody has been talking about my role at TGBL. I would say no single individual could have done this. What it means is this has been a great team for the last many years, and it is collective work that actually drove TGBL to where it is. I have great confidence in the new board, in Cyrus and Harish Bhat (managing director at TGBL) and his team. It couldn't be in safer hands.

Any unfinished agenda?

No. I have been a follower of the Bhagavad Gita - you do what you can and forget about results.

Where do you see TGBL a few years down the line?
I imagine, and this is just sharing a dream, in the next three, four or five years, we would make big acquisitions; we are truly well-powered, not just in coffee but also in other beverages. It would be an unrivalled company.

Any number you would like to share?
It's just a dream. So, I won't share numbers.

Are you looking at acquisitions?
When doesn't a company look at acquisitions? We always have to be looking at these. Growth is driven by both organic and inorganic routes.

Any goal that hasn't been achieved?
I was hoping in the next three years, the company would be a $5-billion company; it is well on its way to reach that target soon. I think at the Prague conference, we had articulated we should be a $5-billion company soon; we had also targeted potential companies but that took time.

Cyrus Mistry spoke about investing in brands.
It would not be fair to give specific numbers, as this is of direct competitive interest. I can only say in two-three years, the expenditure on brand promotion would be an impressive figure. So, that is really the path on which TGBL would go.

Where do you see the Tata Group in three years?
There was a lot of concern over what would happen when a giant such as Ratan Tata handed over the reins. But I think Cyrus has all it takes to take the Tata group forward. Through the last year, he has been exhibiting great leadership and intellect. He is confident.

What has been the biggest challenge for you?
The biggest challenge, in the last couple of years, has been great pressure to maintain the Tata values. It would have been very easy to have gotten away from the problems if we had not been ethical, but the biggest challenge is to hold on to the values.

What would be your advice to Cyrus Mistry?
He has great potential to take the company forward.He has just started and he has great confidence I believe.