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From the plantations of North-East India to the highly competitive and fast growing markets of Europe and US, Tata Tea has indeed made some bold and aggressive strategic moves. But can Tata Tea bring to fruition Ratan Tata’s grand strategy to leave behind a legacy that will rival that of JRD Tata?
Who would have thought that a day will come when there is a face off between 68 year old Ratan Tata, Chairman of the $18 billion Tata group, and Indian born American citizen Indira Nooyi, newly anointed CEO of the $32 billion PepsiCo? The possibility of this face-off is no longer a fantasy. On the face of it, the $677 million takeover of Energy Brands Inc. by Tata Tea in the United States – the biggest takeover deal ever for any Indian company till date – poses no threat to the soft drinks behemoth. Yet, growing at almost 200% a year in the recent past, Energy Brands, also known as Glaceau, is selling energy water brands that are emerging as a global strategic threat to the Pepsi’s various energy drink brands.
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Source : IIPM Editorial, 2006
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