Tata Coffee Merged with Tata Consumer Products

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Tata Coffee Merged with Tata Consumer Products
30 Mar 2022
6 min read

News Synopsis

On Wednesday, Tata Consumer Products announced the merger of Tata Coffee with itself. This decision to bring two companies of the Tata Group together is part of a reorganization plan for the Tatas in the fast-moving consumer goods (FMCG) space and its strategic priority of unlocking synergies and efficiencies. Other than the merger, Tata Consumer Products Limited (TCPL) will also acquire a 10.15% stake in Tata Consumer Products UK Group for ₹570.8 crore. After the merger, shareholders of Tata Coffee will get an aggregate of 3 equity shares of Tata Consumer Products for every 10 equity shares held by them in Tata Coffee. Informing about the latest restructuring and merger, Managing director (MD) and chief executive officer (CEO) at Tata Consumer Products, Sunil D’Souza said: “The restructuring initiative is in line with Tata Consumer Products’ strategic priorities – to unlock synergies and create a future-ready organization. This exercise will enable us to better leverage our supply chain, create customer-focused business verticals, and accelerate decision making and execution.” Analysts think that this decision will reduce the expenses of the companies and will increase the revenue by 5-10%.

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