Tata Global Beverages surges 5 per cent on restructuring of international biz

Tata Global Beverages informed the bourses about the restructuring of its international business. The restructure is likely to result in improved synergies, cost optimization and more focus on its core business.

The company’s units situated in UK, Europe, Middle East & Africa and Canada, Australia & Americas have been merged into a single unit named the International Business Division.

Also, the company has departed from its non-core and sub-scale markets to improved focus on its core markets. In Russia, the company has restructured its operating model and has divested its stake in plantations in Sri Lanka and exited its joint venture business in China.

Tata Global Beverages is mainly engaged in tea, coffee and water business and is the world’s second largest tea company.

Cheering this announcement, the stock surged by 5 per cent and made an intraday high of Rs. 235.20 per share on the BSE. At 10:00 hours, the stock was trading nearly at Rs. 231.50 per share on the BSE.