Tata Global Beverages Ltd, part of the Tata group, on Saturday announced the sale of its entire stake in Czech Republic business for Rs 31.7 crore. The FMCG conglomerate is selling the business to Czech company Dr Muller Pharma.
According to the agreement, TGB Czech Republic would cease to be a subsidiary of the company.
“In our view, this is a right strategy of exiting small overseas business and increase aggression in India business also aided by management changes at the top,” said Abneesh Roy, senior VP at Edelweiss Financial Services.
The company had last month announced the appointment of Sunil Alaric D'Souza as its Managing Director and CEO. D'Souza, who is currently the MD of consumer durable firm Whirlpool of India, will assume his new role from April 4, 2020, subsequent to the retirement of current MD Ajoy Misra. Besides, Ajit Krishna Kumar has been appointed as the company's Chief Operating Officer.
The company has also received the approval of the National Company Law Tribunal, Mumbai Bench and Kolkata Bench for the merger of Tata Chemicals consumer business, mainly salt segment, with the former. The merger is likely to create a Rs 9,000 crore conglomerate. After the deal, TGBL will rename itself as Tata Consumer Products Ltd.