As chairman of Tata Global Beverages (TGB) and brand custodian of Tata Group, Harish Bhat, 54, is a busy man. Not only does he have the responsibility of pushing growth at the country's leading tea maker; he also has the task of lifting the Tata brand in the aftermath of the Cyrus Mistry chapter. In this interview to Viveat Susan Pinto, he spells out his plan of action. Edited excerpts:
With N Chandrasekaran on board as new Tata Sons chairman, the Group is now looking to put the past behind it. How is this trickling down to the businesses you oversee?
We are focused on building market-leading brands in select fast moving consumer goods (FMCG) categories. This includes tea, coffee, water and value-added foods. By value-added, I mean food ingredients such as spices, pulses and salt, which fall under Tata Chemicals. Tea, coffee and water are part of TGB.
Market-leading to me not only means leadership in market share but also in terms of ideas. In other words, to re-invent the category for the future. Tetley, for instance, has reinvented the green tea category with super green teas, basically vitamin-infused green tea. Tata Salt has reinvented the category with Tata Salt Lite or the premium varieties they launched recently, such as pink salt and black salt. Or the new range of wholesome spices under Tata Sampann. These are some instances of how we propose to move into the future.
You have a joint venture (JV) with Starbucks to push growth in coffee. How is it shaping?
I am satisfied with the progress of Tata Starbucks so far. They've been consistent with store launches and should continue growing at a healthy pace. Coffee currently contributes 20 per cent to Tata Global's top line. This should grow to about 25 per cent in the next few years, thanks in part to our JV with Starbucks. We've also ramped-up our branded play in coffee in recent years, with forays such as Tata Coffee Grand. We will continue to make investments there.
Acquisitions have taken a backseat at Tata Global. Are there plans to revive it?
We are always open to acquisitions. In the past few years, we had entered into JVs (with Starbucks, PepsiCo), creating this perception that we are not looking at acquisitions. That is far from the truth. The moment we find something which fits our vision and goals, we will look at acquiring it.
Will you at some stage combine the FMCG businesses under one unit, given that they sit in separate companies right now?
There is no such plan. The category expertise will continue to reside in the individual company. So, Tata Global is a category expert on tea and Tata Chemicals on salt. That will not change. But, they (Tata Tea and Tata Salt) will reach the consumer through the same distribution network we have in place for these products.
What is the plan of action on the consumer vertical as a whole, beside FMCG?
The vertical is an important pillar for Tata Group. Beside Tata Global and the foods business of Tata Chemicals, there is Titan, Trent, Voltas and Croma in the broader consumer space for us. With India's gross domestic product growth moving up, affluence levels growing and consumption of branded products gaining steam, the consumer space cannot be ignored. It is a big growth area for us and we will continue to make investments in that vertical.
As brand custodian of Tata Group, how do you propose to restore the value of the brand, which took a hit post the Mistry-Tata tussle?
The Tata brand is very strong. The trust in it and its products and services remains unshaken. This is based on conversations I've had with consumers over the past few months, across the country. Plus, the quarterly results we've had in the previous quarter make me believe the consumer's trust in the Tata brand is intact.
