Two Tata group firms - Tata Global Beverages Limited (TGBL) and Tata Chemicals Limited (TCL) on Monday announced that the scheme of arrangement between them regarding the Consumer Products Business of TCL is now ‘operational’, effective from February 7, 2020.
"Following this, TGBL has been renamed 'Tata Consumer Products Limited'," the statement said.
Formation of Tata Consumer Products Limited (TCPL) "marks a new strategic direction, an accelerated expansion into India's FMCG market" said TGBL adding that it would "meet evolving consumer needs across the food and beverages spectrum".TCPL would have iconic brands, including Tata Tea and Tata Salt, reaching over 200 million households.
"This deep distribution architecture will also be supported by the Tata Group's brand building prowess. The company intends to further build on the strong platform provided by its market leading positions in tea and salt by investing in R&D, branding, marketing, manufacturing and distribution to create a stronger and larger food and beverage platform," it added.
Commenting on the development, Tata Sons Chairman N Chandrasekaran 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."
"Tata Consumer Products would be in a unique position to leverage the strong brand, wider product portfolio and distribution reach to serve the growing aspirations of consumers across the country," he added.
As announced earlier in December last year, Sunil D'Souza will take over as MD and CEO of TCPL with effect from April 4, 2020, after the retirement of Ajoy Misra.