Tata Consumer Products, known for food and beverage brands such as Tata Tea, Tetley, Tata Salt and Tata Sampann pulses and spices, has decided to transition its Tata Cha business — a tea café format Quick Service Restaurant (QSR) chain — to Qmin Shops operated by a subsidiary of Indian Hotels Company Limited (IHCL). The move will enable Tata Consumer Products to better focus on its core FMCG business, the company said in a media release on Thursday.
Indian Hotels Company Limited, the hospitality business of the Tatas, operates a chain of luxury, premium and mid-scale hotels across the country under brands such as Taj, SeleQtions, Vivanta and Ginger. With the pandemic disrupting the hospitality and restaurant businesses last year, IHCL launched the Qmin app for home delivery of food from its restaurants and later expanded the brand to introduce a lifestyle gourmet store concept Qmin Shop.
The Qmin Shop was designed as a café offering breads, handcrafted cheese and patisserie items, among others gourmet products. Tata Cha will now be part of the Qmin brand. Currently, Tata Cha has 12 stores in Bangalore serving beverages (tea, coffee, coolers), snacks and merchandise. The business is a good strategic fit for IHCL, and can be synergized with the Qmin brand, Tata Consumer Products said in its release.
“This is in line with our strategy of streamlining and simplifying our operations. Though it is a relatively small venture in its current form, exiting Tata Cha will enable us to sharpen focus on our core FMCG business,” said Sunil D’Souza , MD & CEO, Tata Consumer Products.
In its September Quarter earnings last week Tata Consumer Products Ltd reported a business growth of 14% in the beverages business in India while foods business volumes were up 16% year-on-year, it said. In an interview to Mint, D’Souza, however, said the company will focus on expanding its coffee chain Starbucks. He said, in the last quarter, it opened 14 stores and the momentum on store opening will build up even further.
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