India’s largest conglomerate, Tata Group has completed the re-branding of its consumer production business. The formation of the new entity, according to Tata, marks a new strategic direction, an accelerated expansion into India’s Fast-Moving Consumer Goods (FMCG) market, while also maintaining a leading and strategic presence in the international beverages market. As announced in December 2019, Sunil D’Souza will take over as the MD and CEO of Tata Consumer Products with effect from April 4, 2020, after Ajoy Misra’s retirement. Published: 12th February 2020 08:33 AM  |   Tata Chemicals will only transfer human resource — around 300 employees — and intangible assets such as distribution network, brand and marketing to Tata Consumer, while keeping the manufacturing facilities with itself. Reportedly, the group is also set to expand its detergent brand Tata Dx (previously launched in West Bengal) nationally and across other formats (liquid detergents, home cleaners etc.) Follow us for updates, Yogi govt clears draft law against ‘love jihad’, violators to face jail up to 10 years, Doctors in hospitals kept on standby as Chennai braces for cyclone Nivar, Even mild Covid may give lasting immunity among patients in India: Study, Uttarakhand: Child activist Ridhima Pandey makes it to BBC's top 100 women, Cyclone Nivar: TN CM visits Chembarambakkam lake, declares public holiday for 16 districts, Cyclone Nivar is still far away but many parts of Chennai already inundated, Cyclone Nivar: Heavy rains leave Chennai waterlogged, authorities say major flooding like 2015 impossible, Kapil Dev names his India ODI XI: Check out the 1983 World Cup-winning captain's star-studded team. All pages of the Website are subject to our terms and conditions and privacy policy. Commenting on the announcement, N. Chandrasekaran, chairman of Tata Sons, said: “Tata Consumer Products consolidates our current presence in food and beverages in the fast-growing consumer sector. ", ALSO READ: "In FMCG, marketing drives the company; in non-FMCG, marketing is a support function": Rajesh Ramakrishnan, MD, Perfetti Van Melle India, He adds, "The FMCG segment had been going through a lot of change over the last five years and the Patanjali phenomenon is something of a disrupter. Further, TGBL is also set to be renamed as - Tata Consumer Products Limited to "reflect the new strategic direction of the company. Marico, with brands like Parachute, Parachute Advanced, Saffola, Hair & Care, Nihar, Set Wet etc. as part of the strategy. Copyright © 2020 afaqs!. Announcing the development, N Chandrasekaran, chairman, Tata Sons, said, “The merger of the consumer businesses of Tata Chemicals and Tata Global Beverages Limited under Tata Consumer Products consolidates the group’s presence in the fast-growing consumer sector. The turnover of the demerged division of Tata Chemical is Rs 1,847 crore, representing 16 per cent of the total turnover of the company. The Tata Group is a large multinational conglomerate based in India, with many subsidiary and joint venture companies.. Tata Sons Limited is the holding company of the Tata Group, and holds the bulk of shareholding in these companies. According to its annual report for 2017-2018, 100-year-old food company Britannia clocked sales of Rs 9, 282 crores. All the comments will be moderated by the editorial. In a similar vein, there should be many more such opportunities in the food space. This deep distribution architecture will also be supported by the Tata Group’s brand building prowess,” Tata said. As Tata gets bullish on its FMCG push, we ponder on who it will affect most - in terms of rivals and the category. TGBL and Tata Chem shares closed down at Rs 198.60 and Rs 555.50 on the NSE, respectively, even as the announcement came after the trading hours. had sales of Rs 34, 619 crores in FY 2017-2018. ", Mathias explains, "At first, Tatas already strong presence in staples (salt and staples) could impact branded food and staple majors - ITC (Aashirvaad), HUL (Annapurna). Tata Group re-brands its FMCG unit, eyes expansion Going forward Tata intends to build on the strong platform provided by its market leading positions in tea and salt by investing in research … With this, Tatas will become one of the major players in the F&B space challenging Nestle, HUL, ITC, Amul, Dabur, Britannia, and Parle. From now onwards, Tata Global Beverages Limited will be formally called as Tata Consumer Products Limited (TCPL). The proposed transaction will create a focused consumer products company with a combined turnover and EBITDA of Rs 9,099 crore and Rs 1,154 crore, respectively, for the twelve months ended March 31, 2019 on a proforma basis.