Tata Global Beverages to focus on functional beverage segment
Tata Global Beverages (TGB), an Indian multinational non-alcoholic beverages company, is betting big on functional and flavored waters as healthier alternatives to carbonated or soda-based drinks.
The company, which had forayed into the Indian bottled water market in 2007 with Himalayan brand, has recently introduced nutrient water Tata Water Plus and glucose-based flavored drink Tata Gluco Plus in Tamil Nadu and parts of Andhra Pradesh.
TGB also has a stake in California-based functional bottled water brand ACTIVATE, in which vitamins and nutrients are stored as powder in a chamber inside the cap.
Even soft drink giants such as Coca-Cola and PepsiCo intend to leverage the growing health trend in urban areas by strengthening their product offering in the functional beverage space.
Managing director Harish Bhat was quoted by The Hindu Business Line as saying that water business currently contributes around 5%of the company's total sales and the figure is expected to increase to 15% over the next three to four years.
For the quarter ended 31 December 2012, TGB reported steady growth in revenues and significant increase in profits.