Tatas to bring FMCG business under one roof

Mumbai, May 14: Tata Group chairman N Chandrasekaran is set to bring the consumer products business housed with different Tata companies under one roof. The conglomerate will transfer the branded salt, pulses, masalas and ready-to-eat snacks portfolio from Tata Chemicals to Tata Global Beverages as part of its strategy to simplify corporate structure and consolidate operations in similar lines of businesses.
The proposal, which is likely to be announced on Wednesday, will see the rechristening of Tata Global Beverages, reflecting the changing profile of its portfolio, said a person familiar with the matter. EY is assisting the enterprise in the consumer products-consolidation exercise.
Tata Chemicals CEO R Mukundan and Tata Global CEO Ajoy Misra didn’t respond to phone calls.
The branded consumer products of Tata Chemicals — Tata Salt and Tata Sampann, among others — contributed 16% (or Rs 1,847 crore) and 19% (Rs 314 crore) to the company’s total revenues of Rs 11,296 crore and operating profit of Rs 1,643 crore respectively in fiscal 2019. However, since salt is manufactured from the same complex (Mithapur in Gujarat) that also makes chemicals like soda ash, Tata Chemicals will be retaining the manufacturing operations.
The deal will increase Tata Global’s revenues. In fiscal 2019, it reported consolidated revenues of Rs 7,252 crore.
Chandrasekaran had earlier brought the defence and aerospace business, spread across at least a dozen different companies, under a single umbrella.

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