Tata Global Beverages is restructuring its international operations. Their erstwhile Europe, Middle East, Africa (EMEA) and Canada, Australia, and America (CAA) units have been merged into a single unit called International Business Division.
“We had two regions and therefore regional superstructures to manage the business outside of India and the two regions were UK-EMEA and CAA. What we have done is since we have rationalised some parts of our portfolio of businesses such as we have restructured Russia, we are looking at certain other parts of businesses that may not be core and may not be giving us a scare profitability, so going forward, we want to bring more focus into the large power brand geographies,” he said.
“The picture is constantly evolving but we expect that the synergy that will come out of the simplification will lead to better performance overall,” he added.
Mishra said the existing EBITDA of the international businesses is "decent" and it is roughly in line with the company’s overall current EBITDA.
Speaking about coffee and tea prices post Kerala floods, he said, “The heavy rains in Kerala have had some impact on tea crop ... but we believe it is not very significant as a number and we don’t expect that to have any material impact on the market place. Talking about the heavy rains in the coffee areas where our subsidiary company Tata Coffee plays in, we are still trying to assess the damage. I don’t believe it will be something very significant but there has been some damage and our immediate task was to address the workers and the situation and to create relief camps and food and drinking water. I am glad that both, our associate company and subsidiary company for coffee and tea have managed the situation very well and things are back to normal almost.”