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Tata Global Beverages looks at wellness segment

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KOLKATA: Tata Global Beverages (formerly called Tata Tea) is mulling to explore options of entering into the wellness segment by launching tea for diabetes and cardiac patients. The company with this aims at improving its business.

That apart the beverage company is planning to expand its water portfolio to 10 per cent of its turnover by launching ‘Tata Gluco Plus’ and ‘Tata Water Plus’ stage-by-stage across the country.

“We are actually looking at functional teas as an area of future growth. I think this is a very interesting subject going into the future,” said Tata Global Beverages chairman Cyrus Mistry.

A functional beverage is a non-alcoholic drink and consists of ingredients such as herbs, vitamins, minerals, amino acids or additional raw fruits.

“A number of categories in tea and coffee are still unexplored and the geographic reach continues to give us opportunities,” he said.

He said the philosophy of the company is to invest in new categories and geographies.

On tea price, he said, “Tea prices are volatile, but we are making all emphasis on innovation and improvement in procurement process to minimise the impact of rising tea prices in the future.”

According to Mistry, the water division currently accounts for just one per cent of the company’s turnover. During the last financial year consolidated total revenue of the company stood at Rs 7,819 crore, higher by five per cent as compared to the previous fiscal.

TGBL will continue to invest in NourishCo Beverages, a joint venture with PepsiCo India Holdings, despite it not being profitable in the short-term. “But we see revenue growth from this business significantly,” he emphasised. 

The company is also looking at capacity expansion for its premium water brand Himalayan. “We have to invest significantly in building the brands in India and globally,” he said.

Tata Water Plus, a fortified water product was also bought by the Tatas after it signed a 50:50 JV with PepsiCo in the year 2010.

Tata Global has already shifted its headquarters to Mumbai from Kolkata.

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