India’s Tata Group is exploring a merger of Tata Global Beverages Ltd (TGBL) and Tata Coffee in a bid to improve efficiencies and consolidating operations, CNBC-TV18 reported.
The television channel said that Tata Coffee would be merged into TGBL if the deal looked favourable, as it will help the Group amplify synergies of both the companies together.
TGBL denied any such proposal was under consideration, but CNBC-TV18 quoted unnamed sources as saying that the primary focus was on improving TGBL’s efficiencies.
It also said that the Tata Group was aiming to ramp up TBL’s European operations, which contribute 25 percent to overall revenues.
TGBL has a join venture with the U.S. coffee chain Starbucks.