Deal with Tata Chemicals is a step towards aggressive growth, said Ajoy Kumar Misra, CEO of Tata Global Beverages, in an interview with CNBC-TV18.
On Wednesday, the Tata Group announced merger of the consumer business of Tata Chemicals with Tata Global Beverages. The merged entity will get a new brand identity, ‘Tata Consumer Products’.
“We are poised for a very aggressive growth. With the two platforms coming together and the synergy in terms of distribution, in terms of R&D and innovation capability... we think we will have a very aggressive growth path,” said Misra.
“2-3 percent synergy is our initial estimate of the combined India businesses. So, if I take my Tata Global Beverages’ India business and India business of the consumer products, it is roughly about Rs 5,000 crore. So, 2-3 percent of that is in the ballpark,” he added.
Speaking about distribution outlets, Misra said, “Our initial estimate is that while we today may have 1.8-1.9 million outlets that Tata Tea reaches, but with the combined entity, of course, there is an element of overlap, we could be somewhere in the region of 2.5 million outlets direct and indirect that we would be reaching. So, our retail reach should go up.”