MANAGEMENT DISCUSSION AND ANALYSIS- 2015-16

Business Overview

Tata Global Beverages is a global natural beverage business with brand brsence in over 40 countries. Your Company is the second largest player in branded tea in the world and has growing interests in coffee and water. Your Company focuses on creating 'magical beverage moments' for its consumers through its stable of innovative beverage brands, including Tata Tea, Tetley, Himalayan natural mineral water, Tata Gluco+, Tata Coffee Grand and Eight O'clock Coffee. Your Company follows an overall strategy that builds on its core strengths - understanding of consumer requirements, differentiated product offerings, brand management, distribution and international footprint. Whilst tea accounts for around 74% of our revenue, coffee accounts for 25% and water and other products contribute to the rest. Approximately 60% of the consolidated revenues come from markets outside India such as United Kingdom, United States of America, Canada, Russia, France, Australia and Europe.

Industry Structure - Global Economic, Consumer and Competitor Trends

The global economic trends continue to be uncertain with slower growth in many markets. India and China appear to be the growth engines of the future along with the US where the outlook appears to be improving.

The macro-economic conditions are driving certain behavioral trends in consumers. Consumers, especially in the international markets, are continuing to seek better value thereby increasing competitive intensity. We have also seen new entrants in certain segments which has further increased the competitive intensity in those countries. Consumers are also looking for product choices that are increasingly shifting towards convenience, health and wellness and improving lifestyle. In keeping with the lifestyle theme, there is also a growing trend for more brmiumised products in many markets. In addition, we have seen growth in new formats and new channels for sales. There is an emergence of specialty tea stores and café concepts coupled with growing e-commerce channels with an emphasis on personalisation and convenience. Changing consumer trends s has led to a category decline in everyday black tea in certain developed markets. In addition, since consumers have become value conscious, there have been instances of private label and regional players gaining in market share. Your Company continues to constantly strive to meet these challenges by strengthening its brands, category expansion, innovation, investment in new ventures and cost rationalisation. Your Company closely tracks and gains insights into the changing consumer landscape and trends like change in lifestyle, brmiumisation and the need for convenience. We do this by understanding the palate unique to each region and also  leveraging on the consumer brference for products related to health and wellness in order to offer a range of interesting and innovative products across the beverage portfolio.

TGB brands have successfully adapted to the digital medium to narrate brand stories. From Tetley being rated as one of the top social brands by The Grocer in the UK, to the innovative Tetley Transformation initiative in India, the 80 seconds of Mindfulness campaign by Tetley in Australia, and Tetley Farmer's First Hand - a unique property of TGB, our brands are leveraging the digital medium to touch consumers in meaningful ways.

Industry Structure - Commodity Trends

Tea

The 2015-16 season witnessed a crop decline across all major producing countries barring Bangladesh. In India, annual production declined 16.2 million kgs but most of this decline came from the South. Kenya which is the largest exporter of CTC teas also experienced a less favourable year and after two successive record crop years saw a drop of 45.9 million kgs or 10% from 2014. The top 10 producing and exporting countries outside of China collectively accounted for a decline of 105 million kgs in annual production.

However not all prices moved along expected lines and in tandem with a drop in supply. With the exception of Africa, led by Kenyan teas, most other producing countries witnessed a gradual easing in overall sales averages. Mombasa averages rose by $ 0.71 or 35% over 2014 at an average of $ 2.75 per kg. This is also $ 0.22 above the 5 year average. In North India, whilst the annual CTC average was lower by Rs 3.29, orthodox teas were dearer by Rs 19.28. North India also saw a pricing brmium for quality teas which will be an encouragement for the unorganised sector and small tea growers towards more sustainable field practices and quality control. In South India prices dropped Rs 3.07 per kg. All India averages fell by Rs 2.31 and the year closed at Rs 128.60 per kg. In Colombo prices fell sharply by SL Rs 59.24 despite a lower crop. Bangladesh on the other hand recorded a higher crop and also a higher price of Tk 17.47.

Markets in the first few months of the current year have reverted to a more traditional and expected pattern. A record first flush crop in North India has meant easier opening levels. This trend is forecast to continue for some time. In South India drier weather and lower production has moved prices upwards. We expect prices to remain at this level until the onset of the monsoons when higher spot availability should see prices move back. Kenya has had a record crop at the beginning of the year and prices have moved down reacting to this additional supply.

Coffee

The supply and price of coffee are subject to significant volatility. Supply and price of all coffee grades are affected by multiple factors, such as weather, natural disasters, crop damage, farm inputs and cost of production, competitive brssures, domestic and international currency and economics in producing countries. Price is also impacted by trading activities in the coffee futures markets including hedge funds and commodity index funds. We continually analyse green coffee costs to review our costing structure. To help mitigate volatility and external trading factors, commodity price management strategies are implemented to protect forward pricing.

We purchase coffee from over 20 countries through a combination of outside trading companies and through other relationships to ensure supply of green coffee. We depend on these relationships with our supply partners to deliver on-time, specific taste profiles of our raw green coffee.

The global production of Coffee for the year 2015 is estimated at 144.7 million bags and consumption at 152.1 million bags as per International Coffee Organisation. Due to higher production of Robusta in Vietnam and weakening emerging market currencies, coffee prices trended downward l in 2015-16. Coffee prices have traded in the price range of 1.1 cents/lbs to 1.5 cents/lbs for Arabica and 0.6 cents/lbs to 0.8 cents/lbs for Robusta. The outlook is for lower prices to continue in the initial months with some scope for hardening as the year progresses

For the year ended 31st March 2016, Income from operations at Rs 8,111 Crores was 2% higher than the brvious year. At prior year exchange rates, the improvement would have been 3%. The growth has been achieved despite high competitive intensity, adverse macro-economic conditions in certain countries, slower growth or decline in everyday black tea categories in developed markets.

Operating profits at Rs 532 Crores is lower than the brvious period mainly due to increased spends behind brands and new launches, higher spends on initiatives, absence of one time credits which was available in the brvious year and higher commodity costs mainly in the international markets.

However Group net profit significantly improved over the prior year due to the impact of exceptional items. In the current year, the exceptional items had a favourable impact mainly due to profit on sale of non-core investments partially offset by impairments taken for certain intangible assets.

Income from operations grew 7% over the prior year driven by improvement in branded business due to volume improvements and higher price realisations. Profit from operations improved over the prior year mainly due to higher sales and lower blend costs offsetting the impact of higher spends behind brands. Profit after tax was significantly higher than the prior year mainly due to the impact of exceptional items. Exceptional items were favorably impacted by profit on sale of non-core investments.

Product / Brand Performance - Tea & Coffee

Despite the challenging environment brvailing in the international markets, the branded business did report growth led by improvements in operations in India, MAP, Teapigs, Tata Starbucks, NourishCo and Russia. In India, tea sales improved due to volume increases and higher realisations, Tata Starbucks' topline increase was attributable to better in-store performance and increase in the number of stores. Improvement in NourishCo's performance was attributable to strong growth in Tata Gluco Plus and to a lesser extent Himalayan. Our MAP brand

Australia benefitted from the impact of full year of operations post acquisition and improvements through growth in grocery channel. In certain developed markets like UK, Canada and US, we grappled with the challenge to grow top line as there was significant competitive intensity and decline in black tea category. High commodity cost in the international markets had an impact on profit delivery. However, your Company has done well in the brmium/specialty segments. To meet the increasing demand in the brmium segment, we increased distribution of our super brmium tea, Teapigs. Teapigs recorded good growth in UK, Canada, US and other international markets with increased distribution. Green tea performance also exceeded expectations. In UK, our green tea growth has been significant and ahead of category growth driven by the improved performance of Tetley Super Green tea. Green tea also recorded significant growth in India with advertisement support in the beginning of the year and online activation in the second half of the year. Our green tea portfolio has also done well in other countries such as Canada and France. In addition, we also launched fruit and herbals in UK and USA which received favourable response from consumers. In India, during the year, we launched Tata Coffee Grand, with a high impact launch which created desired buzz and visibility.

The global marketing function continues to focus on developing a strong global brand portfolio with an enhanced global innovation agenda. TGB will increase focus on its 4 power brands namely Tetley, Tata Tea, EOC and Himalayan. These power brands will be managed in a globally consistent manner including creating a global brand identity.

Sales from non branded business recorded improvements mainly due to improved performance in coffee / pepper plantations coupled with improvements in instant coffee sales driven by improved agglomerated coffee sales. However, profitability was flat mainly due to wage revision impacting the plantation business and soft tea commodity prices offsetting the favourable impact of higher coffee/pepper sales.

Performance of Key Geographies/ Segments

Your Company's operations in India reflect a topline improvement of 6% driven by growth across all major brands. The growth has been achieved mainly due to improved volumes and higher realisation. Operating profit improved attributed to improved sales and lower blend cost despite higher investments behind brands.

The Company's growth plans for the Indian business are driven by strategic innovation, category expansion and entering white  spaces in the market. In line with this, your Company launched two new products in the tea category during the year under review. Tata Tea Fusion is a good example of innovation that allows consumers the option of blending different types of teas to create a customised brew. With Tata Tea Gold Mixture, your Company entered white space geographies by launching the brand in Maharashtra, the second largest tea market in India which is dominated by local players. This tea blend was specially crafted to deliver the strength, thickness and aroma brferred by consumers in Maharashtra.

Additionally, your Company introduced an instant coffee product in India under the brand Tata Coffee Grand. This product was launched in a competitive environment and at a time when coffee consumption is seeing growth in non southern markets in India. Tata Coffee Grand is an innovative product and the launch is in line with our strategy of category expansion. The product was jointly developed by your Company and Tata Coffee Limited, which leverages our deep heritage in coffee from 'Source to Sip.' Sourced primarily from Tata Coffee's own plantations in South India, these coffees are roasted and processed to perfection, making the product an intensely rich, fresh and aromatic coffee. The product is an innovative blend of the finest coffee powder and decoction crystals which gives consumers a 'best in class' taste experience in the instant coffee category. The brand launch was supported by an impactful advertising campaign.

Tata Starbucks business continues to grow. The store count stands at 82 at the end of the financial year. The growth drivers mainly are improved in- store performance as well as increase in the number of stores.

Your Company continues to be the value and volume leaders in the overall tea category and is also a market leader in the green tea category. The branded tea segment recorded volume and value growth aided by improvements in Tata Tea Gold, Tata Tea Agni, Chakra Gold, Kanan Devan and Gemini. These brands have been supported through various advertisement campaigns and on-ground /online activations during the year. Double digit growth in Tetley brand was led by Green tea category. Within this category, online activation in the 2nd half of the year met with good consumer response

We are pleased to report that our brand campaign, 'Jaago Re', won the Gold in the 'Best On-going Campaign' category for the campaign titled 'From Packaged Good to Packaging Good, at the 15th edition of the Effies Awards organised by the Advertising Club of India. The award recognises advertising that has succeeded in building brands and increasing sales.

United Kingdom

Black tea category continues to dominate the market with around 80% of volume and 60% value. While the everyday black tea category is in decline, there is good growth in speciality, green and fruit & herbal categories. The market environment is challenging with intense competition resulting in brssure on margins in major grocery accounts and frequent retailer strategy change and SKU reviews. This was further exacerbated with hardening of commodity costs which impacted operating profits. However, there were pockets of improvements in UK. The green tea, specialty teas and the super brmium tea, Teapigs witnessed imbrssive growth. Early last year, Tetley launched four new Super Green Teas, the first fortified green teas in the UK with proven health benefits. The taste, combined with vitamins and minerals and the functional benefits has been drawing in consumers making Super Green award winning and the No. 1 NPD in the UK The product earlier received the coveted gold stars in the 2015 Great Taste Awards and has now followed it up with the Product of the Year 2016 award. Backed by the success of Tetley super green teas in UK, a new range of super fruit products has been brsented to key customers and listing has been secured with some major retailers.

Tetley in UK has been rated the No. 2 FMCG social brand of 2015 by The Grocer, jumping seven places from ninth position last year. The Grocer leads the market as the UK's only paid-for online service and weekly magazine with coverage of the whole FMCG sector.

United States of America

In a challenging market, Eight O' Clock Coffee's 2015-16 reported net sales recorded marginal improvement over the prior year. The underlying performance was impacted mainly due to increase in competitor intensity through additional promotional events as well as deeper discounting. In addition, there were new entrants in the Pods category which further intensified the competitive landscape. The profitability of the business was impacted in the earlier part of the year due to higher commodity costs but improved in the second half of the year. The brand continues to do well and grow volumes in a competitive market. In the tea category, the green tea business is performing well and is gaining share. Good Earth Tea recorded stable sales and plans are being readied for scaling up this brand. Sales of Tetley however were lower against the prior year largely due to promotional underperformance in black tea. The Herbal tea which was launched has seen good consumer response.

Canada

The business launched its brmium line of specialty teas called Tetley Signature collection. The launch was supported by  advertising to reinforce Tetley's leadership position in the specialty tea segment. The tea also provides the customer with a string and tag/drawstring tea bag. The Company is pleased to announce that it maintains both volume and value market leadership in Canada. In addition Teapigs has gained distribution and market share in the brmium segment.

Tetley in Canada has been voted the Most Trusted Brand of Tea by Canadians in 2016 now for two years in a row by the Reader's Digest in their annual Trusted Brand survey.

Australia

The Australian business benefited from increase in MAP pods sales with tea volumes showing a decline due to decreased on-shelf display at key retail accounts. The business continues to engage with retailers to review product placement plans which will help improve volumes. The profitability of the tea business improved due to lower promotional costs and optimisation of overheads. However, the coffee business was impacted on account of higher spends behind brands. Tea business remained stable despite decline in mainstream black tea segment. Within the specialty range, new flavours were launched across steamed green and Fruit &Herbal range. A new product - Mr. Barista was launched in the coffee segment which had a positive customer response.

Europe and Middle East

The TGB team in Western Europe achieved new placements for Tetley in the domestic tea fixtures in Spain, with 6 products launching in 100 El Corte Ingles stores, the biggest department store group in Europe. El Corte Ingles have also invited Tetley to showcase additional products at their upcoming trade fair. We have also successfully secured the listing of Tetley Decaf in 400 stores owned by Grupo DIA, one of the leading specialist discount groups in Europe. These listings will help in gaining momentum with Spanish consumers. The exposure to domestic consumers from this listing is expected to have a positive impact on the awareness of the Tetley brand and the possibility of introducing new products, at a later stage, custom made for the local palate. The business in France reported a robust growth, reflected in its MAT volume and value growth aided by green and earl grey segments post relaunch. The business also grew in Portugal mainly aided by specialty greens.

Russia business topline grew aided by price increases with consumers switching to lower cost brands due to brvailing economic conditions. However, the profitability was impacted due to macro-economic conditions which reflected in the exchange rates and interest rates. There was good execution of the launch plans for Tetley in the Middle East and we continue to consolidate our position in the region.

The TGB team in Poland extended the Vitax range, our specialty tea brand, with the introduction of standout flavours full of intriguing combinations which is expected to gain consumer traction and mitigate the historical underperformances Very recently we completed a restructuring of the sales and distribution network in Poland which has improved the operational efficiences and is expected to improve the business performance.. In the Middle East, the execution of the launch continues supported by advertisement and in-store promotions. New launches under the Kanan Devan brand found favourable response from the hot tea shops.

Water Vertical

Tata Gluco plus was the star performer in the water vertical. The brand has been performing extremely well and high double digit growth in volume and value terms were recorded during the year 2015-16. The new proposition of"Gas minus Energy Plus" and the visual changes on the packaging to communicate "Energy" for the brand were received very well by the consumers and have accelerated the brand's growth rate. The growth trajectory has been intact despite price increases taken for the brand. We have strengthened our distribution through the Pepsi network with brsence in Maharashtra, Karnataka, Gujarat and Kerala. Himalayan sales reflected double digit growth with price increases and focus on channel mix. During the year, a television commercial was run with the objective of establishing Himalayan's "Source" and "Nature" credentials.

Non Branded Business

Our Non Branded business consists of plantations and extraction verticals. In plantations, we primarily manufacture and sell tea, coffee and other plantation produce like pepper whilst the extraction business is split between instant tea and instant coffee. In the current year, improvements were recorded in the Coffee extraction business and in coffee/pepper plantation business. In the instant coffee business, there were improvements in exports sales to the African and Russian markets. On the plantation side of the business, while the sales volumes and pricing generally improved, profitability was impacted by soft tea prices, wage revisions in the plantations. The instant tea business benefitted from customer acquisitions, improved sales realisation and lower operating costs.

The instant coffee operation continues to focus on operational discipline, cost reduction and sustainability in operations. With a specific focus on cost reduction, various alternatives have been pursued to reduce the power and fuel costs in the instant coffee factories. The Theni Unit won the CII Sustainability award and Toopran unit, the National level Energy conservation award. We  are pleased to report that the Instant Tea unit in Munnar won the brstigious Kerala State Pollution Control Board Award for the second year.

Outlook - Consumer, Commodity and Competition

As detailed earlier in the document, the market environment is different across geographies and operating challenges are likely to continue. While overall global demand for tea is growing, in some developed markets, we face the challenge of decline mainly in the black tea category reflecting a shift in consumer consumption patterns. However, there are positive emerging trends - (i) growth in health and wellness segment with increasing recognition of health benefits of tea vs carbonated beverages, (ii) consumption shift towards non-black (includes green, specialty and Fruit & Herbal), (iii) increasing brference for brmium / novelty/ artisanal products and (iv) emergence of alternate channels like specialty tea stores/ cafes and e-commerce platform with emphasis on personalisation.

In developed markets, we expect the retail environment to remain competitive with increasing retailer consolidation and plan to continue with aggressive promotions strategy to sustain growth levels. We also expect the significance of modern trade to increase over traditional trade in these markets exacerbating the competitive environment. In addition to this, we also foresee private own-label brands and local brands continuing to be major competitors.

With our vision to become the most admired natural beverages company in the world, Tata Global Beverages has stepped up its innovation agenda to leverage the emerging growth trends in our markets. We continue to commit resources to bolster our R&D pipeline and launch new products with a focus on specific themes: health & wellness and convenience (new formats), brmiumisation and expansion of non-black tea portfolio. For example, in the current year we launched Tetley Super Green in UK which provides functional benefits as part of our strategy to increase brsence in Health & Wellness segment, launched Tata Tea Fusion in India and accelerated expansion of our super brmium brand Teapigs as part of brmiumisation strategy and customised product for entry in white space markets e.g. Tata Tea Gold Mixture for Maharashtra. We also continue to invest in growth for our JVs: Tata Starbucks and NourishCo (Water) and scale up businesses in Middle East, Australia (Coffee) and USA  (Tea).

We also continuously review our cost structure and operating efficiencies in order to remain competitive and to leverage funds for growth.

Outlook - Interest Rates and Exchange Rates

Given the global operations of our Company, both interest rates and exchange rates in various currencies / geographies are of significant importance to our business.

Most geographies that we operate in, witnessed a flat interest rate, mainly as inflation and inflationary expectation remained subdued. Interest rates eased in India driven by cut in policy rates by its central bank and are further expected to drift downwards marginally. Future impact of interest rates will depend on the outlook and action by the US Federal Reserve and also events like the impact of the UK referendum. The rupee saw an overall weakness given the probability of interest rates hike in the US and sudden sharp debrciation of its currency by China. The rupee however recovered some of its losses on account of its apex bank instilling confidence by curtailing the volatility and some optimism that the Fed would gradually hike interest rates in US. Also expectations of rate cuts by RBI post budget prompted exporters to convert their receipts and kept the Rupee on a soft note. The rupee is expected to trade with a weaker bias owing to fears of Yuan devaluation and rate hikes by Fed.

Sterling weakened against USD, starting from third quarter and is expected to weaken further given the uncertainty in outcome of the referendum on possible UK exit from the European Union coupled with dollar strengthening on the expectation of US rate hikes later in the year. The outcome of the referendum could impact currency and interest rates and potentially trade flows within the European Union. Russia macro- economic conditions remained uncertain given the high volatility in the oil prices. The market witnessed two-way movements in both interest rates and currency. The Company is governed by Board approved treasury policies with respect to hedges for its exposures arising out of interest rate risks and foreign exchange risks, and is reasonably covered in respect of its immediate trade flows.

Opportunities

The focus on healthier lifestyles has created a very positive market for our product range. There is a big opportunity across geographies to 'extend our business footprint by entering the Fruit and Herbal segments with Tetley. Continuing its drive into functional teas, Tetley in the UK is launching three new Tetley Super Green Teas extending the functional benefits of the range to feature European Food Standards Agency approved health claims relating to heart health, detox and beauty.

The momentum behind Super Green Tea enabled Tetley in the UK to grow retail value sales within the Green tea segment by 28% year on year. With the Boost and Immune variants doing  exceptionally well, it was important to extend the range to include other popular health benefits which are appealing to younger consumers who have been turning away from tea. The wide range of benefits offered in this range now gives consumers an added reason to drink green tea.

The coffee category in India is poised to grow in the coming years and Tata Global Beverages is well positioned to enter this category. Tata Coffee Grand gives consumers the convenience of instant coffee along with excellent taste and flavour.

Threats, Risks and Concerns

There is a continuous decline in the everyday black tea category in some of the key markets where your Company has significant operations. The Company is driving innovation in tea and non-tea categories to adapt to the changing environment.

Intense competition in the market place with increased investment in promotions/ media impacts Company's performance in market. The Company reviews and monitors its pricing and promotion strategy very closely and benchmarks with the industry practices.

Significant increase in tea prices and inability to pass the increase to the consumer may impact earnings. Further, political, social and weather changes may impact availability as well. The Company focuses on development of market relationships, innovation of alternate supplier channels and exploring alternate sources of teas in other parts of the world to safeguard the earnings and availability. Tea is a multi harvest agricultural commodity and is sold through public auction or by private treaty. There is no futures market in tea. Price levels reflect supply/demand position and as an agricultural crop supply/demand balance may change quickly when weather conditions are adverse. To manage supply risk, the Company sbrads its buying between public auction and private treaties.

Cyclical swings in coffee commodity markets are common and the most recent years have been especially volatile for the price of coffee. Increases in the cost of green coffee could reduce our gross margin and profit. There can be no guarantee that we will be successful in passing commodity price increases on to our customers without losses in sales volume or gross margin. Precipitous decreases in the cost of green coffee could result in significant headwinds causing us to lower sales prices before realising cost reductions in our green coffee inventory. TGB has a robust framework in place to protect its interests from risks arising out of market volatility. Based on market intelligence and continuous monitoring, the sales and procurement teams take appropriate strategy to deal with such market volatility.

Volatility in currency exchange movements like RUB, CAD, USD, GBP and AUD can pose challenges to the Company's operations through earnings dilution. The Company has established currency hedging policies and practices to manage these risks.

The upcoming referendum on Brexit can also pose some risks if the decision by the UK is to exit the EU. While the potential implications arising out of absence of free trade access in such a scenario is difficult to brdict in the short to medium term, the currency is most likely to experience sharp debrciation which can have an inflationary impact on the business.

Changes in regulations relating to taxation, product and other areas if significant could impact performance.

Risk Management

The Company has a system of documenting and reviewing key risks. Apart from management reviews, the risks are also periodically reviewed by the Board and its various sub committees including the Risk Management Committee.

Human Resources and Industrial Relations

Your Company implemented several initiatives towards enhancing capabilities and to support our growth agenda. The key initiatives were:

• Re-energising the organisation: A group wide survey was conducted in association with Gallup wherein we identified 20 engagement driver questions which saw a very high level of participation and the results showed that 14 drivers have a significant positive change as per Gallup benchmarks.

• Brewing Brilliance: This is an online peer to peer recognition program wherein every employee can share and convey apbrciation & recognition to other colleagues. This has been very successful.

• Perfect Cup: The Company introduced a Global Reward & Recognition programme celebrating a culture of success and recognition.

• High Performance and Reward: A Global Reward Strategy Benchmarking was undertaken and a key summary  was shared with Senior Leadership for their inputs and feedback. A revised approach to the Annual Salary Review process aligned to the recommendation of the benchmarking report and best-in class practices is proposed to be implemented.

• Talent Management Framework - An Integrated approach to Talent Management focusing on Talent, Assessment, Aspiration, Development and Impact was introduced with focus on aligning the Key HR process with talent management process to create an effective framework for attracting and retaining High performing Talent.

The total number of employees on the rolls of Tata Global Beverages Limited as of 31st March 2016 was 2,552.

Internal Controls and Governance

Your Company has adequate internal controls and robust systems in place. The Audit Committee of your Company review such controls periodically. The Internal audit function carries out a focused internal audit programme in consultation with the Audit Committee. The internal audit primarily focuses on the adequacy of appropriate systems and controls. The Tata Code of Conduct has brscribed guidelines outlining the key disclosure and governance requirements besides mandating the observance of applicable statutory requirements by the Company. Your Company and its senior management have affirmed adherence to the Code.

Cautionary statement

Certain statements made in this report relating to the Company's objectives, projections, outlook, expectations, estimates, among others may constitute forward-looking statements' within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections etc., whether exbrss or implied. Several factors could make a significant difference to the Company's operations. These include climatic conditions, economic conditions affecting demand and supply, government regulations and taxation, natural calamity, currency rate changes, among others over which the Company does not have any direct control.

Conclusion

Your Company's primary focus will be to grow volumes across markets. TGB will address each market depending on local conditions and consumer trends. While we recognise that the global environment is extremely challenging there are new opportunities emerging to meet consumer needs. Tata Global Beverages will focus on profitable growth through a mix of brand led growth, innovation, efficient cost management and successfully scaling up new businesses.