FNB News - Tata Global Beverages Q3 results reflect lower revenues, higher spends

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BEVERAGE

Tata Global Beverages Q3 results reflect lower revenues, higher spends

Monday, 15 February, 2016, 08 : 00 AM [IST]

Our Bureau, Mumbai

Tata Global Beverages Ltd recently announced its results for the
nine months ending December 2015. For the period to date, the company reported an improvement in the group income from operations against the corresponding period of the previous year.

Income from operations for the nine months ended at Rs 6,145 crore, increased by 3% at constant exchange rate as compared to corresponding period of the previous year. However, for the quarter, income from operations at Rs 2,081 crore, was impacted mainly due to timing of sales in the international markets and currency translation. Profit from operations for the quarter reflects the impact of lower revenues and higher spends in new initiatives and non-recurring items.

Meanwhile, the company is focussing on innovation and new product launches. It entered the branded instant coffee business in India with Tata Coffee Grand. Sourced primarily from the company’s plantations, the product is a blend of coffee powder and decoction crystals. With this market entry, the company has taken a step to leverage its product, marketing and retail expertise to enter the branded coffee space in India, claims the company.

The company entered the premium black tea market in India with the launch of Tata Tea Fusion - superior Assam tea which comes with the option of adding a taste enhancer of Kenyan tea or green tea, to create a customised blend.

Himalayan natural mineral water launched its new website in January. Created around the brand’s core proposition of ‘Live Natural.’

Ajoy Misra, MD and CEO, Tata Global Beverages, said: “We will continue to focus on white space opportunities globally like we have done with Tata Coffee Grand & Tata Tea Fusion in India, Tetley Supergreen in UK and Map coffee in Australia. The market environment in some overseas markets continues to be challenging due to macro-economic challenges and high competitive intensity. Tata Global Beverages is addressing these challenges by focussing on building strong brands, category expansion, innovation and improved operating efficiencies.”