Chairman of Tata group Ratan Tata smiles during an industry conference in New Delhi
Tata Global Beverages, formerly Tata Tea Ltd, is considering restructuring the company's operations at various levels and aiming to launch a new nutrition-based beverage, top officials said on Monday.
"We are looking at merging like businesses. Whenever we believe there is scale and size that warrant a merger, we would indeed take it forward," Ratan N Tata, who is also the chairman of Tata Group, said on the sidelines of the company's annual shareholders' meeting.
The company is looking to develop a new beverage based on nutrition and wellness, he said, but did not elaborate.
Earlier in his address to shareholders, Tata said that the company is aiming for revenues of $5 billion in the next 5 years, from the present $1.5 billion.
"Over the next 5 years, we are looking to grow our EBITDA levels by 15 per cent year-on-year," he said.
The growth would come from acquired and own brands, product development and acquisition, Vice Chairman R K Krishna Kumar told reporters.
Tata Global expects its margins to be under pressure in FY11 on increase in input prices and shortage of production of tea and coffee, Tata said.
The company is also looking at exploring a joint venture with PepsiCo for global distribution for its products, excluding tea.
(Pictures by Reuters)