Tata Global Beverages Ltd, formerly Tata Tea, is planning to add foods and fortified health drinks to its portfolio of products that currently includes tea and non-carbonated drinks.
Company chairman Ratan Tata told shareholders of TGB here that he continues to remain optimistic of continued growth from the core tea business, while growth is also expected from the health and wellness space.
Tata said the company, so far engaged in the businesses of tea, non-tea non-carbonated beverages and mineral water, was planning to foray into foods and fortified health drinks.
TGB, which in April 2010 announced a tie-up with PepsiCo, would explore the possibility of setting up a JV for global distribution of its products, as it eyes a revenue of $5 billion by 2015.
"The present revenue of the company is $1.5 billion. The target is to take it to $5 billion in the next five years," Ratan Tata told shareholders at the company's 47th AGM here.
Mr Tata said that TGB would build up operational scales in US and Russia. The company would also stay away from unhealthy beverages, which were injurious to health, he said.
To a shareholders's query on whether Tata Sons would raise stake in the company, Mr Tata said, "The only avenue available to us was creeping acquisition of 5 per cent each year."
"We are keen to raise stakes in key companies," he pointed out, adding that "based on the financial limitations, we would continue to do that." At present, Tata Sons' holding in Tata Global Beverages stands at 35 per cent.
Asked if Tetley would be listed, Tata said that restructuring of the UK entity was being looked into at various times and that margins would come under pressure, but the company's efforts would be to maintain the margins by introducing newer products.
Vice-chairman of Tata Global Beverages R.K. Krishna Kumar told reporters later that the company was looking at acquisition of food brands. "We may acquire brands or come up with our own," Kumar said.