Tata Chemicals, Tata Global Beverages and Star Bazaar have stepped up collaboration in the food consumer space as multiple Tata group companies explore opportunities to work together as a cluster, a strategy suggested by Tata Sons' new chairman N Chandrasekaran.
Chandrasekaran, is looking to restructure the loosely-held conglomerate into tighter clusters based on industries they operate in to achieve scale and cut costs. His focus is to create a few strong industry leaders rather than have many small companies that are unable to achieve scale. Tata Chemicals' consumer businesses include salt, pulses and water purifier, while Tata Global Beverages sells tea, coffee and packaged drinking water. Star Bazaar is Tata Group's hypermarket chain.
Tata Chemicals already works on some projects with Tata Global Beverages- nutrition and nourishment, building pesticide-free tea and coffee plantations and rural distribution. In the past, it had collaborated with TCS, Titan to create its water purifier product - Tata Swach. It also sells its fresh produce through Star Bazaar.
Tata Chemicals is overhauling its organizational culture by winding down its old bureaucratic and hierarchical structure as it bets on future revenues from its younger consumer, branded agri and nutritional solutions business.
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