Tata Global Beverages To Focus On Water Business

Tata Global Beverages has announced that it intends to increase its share of water division from the existing 1% to 10%. For doing so it will launch nutria enhanced Tata water plus and various other flavors on a nationwide scale. The company also has a joint venture with Pepsico, Nourishco through which offers Tata Gluco Plus, which registered a good growth last quarter on back of a strong distribution network. Last quarter, the water vertical has shown an excellent growth. Tata Gluco Plus has entered Gujarat and Maharashtra region whereas; Tata Water Plus has entered into Uttar Pradesh.
 
The 1% revenue from water segments amount to Rs 18.84 crore which it intends to take to 10% amounting to Rs 188.4 crore. Tetley, a 100% steam tea also recorded a good growth on a quarterly basis. Tata Global is planning to enter the area of functional teas which are beneficial for the diabetic patients. It has launched four new flavors in UK in its tea segment.
 
The Tata Starbucks alliance is also expanding at a good rate. In the last quarter the alliance had 46 stores which has grown to more than 50 as of date, the management said. It has also launched Indian Estates Blend exclusively with Tata Coffee.
 
According to the company, its pilot launch in Kuwait has been successful with it reaching No 2 spot in value share. The Czech operations have also turned profitable on the back of price increases and cost reductions. The company is also planning to increase its existing capacity of instant coffee plant in India.
 
The net profit of the company decreased by 12.89% and stood at Rs 97.23 crore in June’2014 quarter as compared to Rs 111.63 crore in June’2013 quarter. The income from operations grew by 5.49% to Rs 1913.11 crore in June’2014 quarter as compared to Rs 1813.46 crore. The profits decreased mainly due to increase in total expenses which rose by 6.83% to Rs 1746.81 crore in June’2014 quarter as compared to Rs 1635.12 crore in June’2013 quarter.
 
The tea segment recorded a 10.15 % growth, coffee and other products registered a negative growth of 8.18% and other segment grew 15.48%, on a yearly basis (June’2014- June’2013).