Tata Tea kick starts global integration

Nine years after buying Tetley and a slew of overseas acquisitions later, the Tata Tea group has started the process of integrating all its businesses into one global beverage group. CNBC-TV18's Sajeet Manghat and Arvind Sukumar report.

Tata Tea is learning from its global peer Unilever. It is carving all its businesses into six geographies, each headed by a President reporting to an Executive Committee that in turn reports to the board. All the six presidents will be now handle a cross-section of products acquired from acquisitions made in the last nine years.

Peter Unsworth, CEO, Tetley Group, said, "What we have done is over laid across the top of a statutory structure a management structure which is integrated and aligned with statutory structure in the sense that we can carve the information in different ways. The crucial thing for me is that the structure is broadly strategically independent of those statutory structures. Crucial thing is that it creates efficiencies."

The integration will focus on making Tetley, Tata Tea, Good Earth & Himalaya as Global Focus Brands.

Its regional hubs will focus on optimising six brands - mainly Vitax, Jemca, Eight'OClock Coffee, Tata Coffee, Chakra Gold and Kanan Devan.

So, now it will integrate its US operations, its brand President will handle the global focus brands and bringing in synergies of manufacturing and sourcing. But, it is yet to take a call on financial restructuring or consolidating all listed entities.

Tata Tea now wants to launch new products globally to consolidate its portfolio to compete against giants like Coca-Cola and Unilever.

Also see: Tata Tea to integrate its beverages brands