Tata Global: Getting back on track

Shedding unviable operations should improve growth prospects

Tata Global Beverages stock has doubled over the last year on the back of the company’s strategy to restructure its operations. The company has outlined a strategy of exiting non-performing business, focusing on core brands (Tetley, Tata Tea, Eight O’clock, and Himalayan), premiumisation, and improving operational efficiencies. The company has already announced that it is exiting loss-making geographies of Russia and China and mulling its course of action in Poland, another underperforming market. 

The improvement in operational efficiencies is reflected in the September quarter results, which saw its operating profit margins increase by 100 basis points to 12.6 per cent.