Tata Group to get into food retail
05 Jul 2007
Mumbai:
The Tata Group will soon begin food retailing after the group''s entry into
processed foods with the acquisition of 70-per cent stake in Innovative Foods
from the Amalgam Group.
The group may sell food products, including fruit and vegetables and baked food, through a chain of retail stores.
Residency Foods and Beverages, a subsidiary of the Tata Group''s hotel arm, Indian Hotels Company, the vehicle for acquiring a stake in Innovative Foods last year has also acquired 80-per cent equity in Kochi-based seafood exporter Amalgam Foods and Beverages.
Residency has already entered into an agreement with Jasper Aqua Exports, a Vizag-based seafood company, which will manufacture products exclusively for the Tata company''s product portfolio.
R K Krishnakumar, Indian Hotels'' vice-chairman, had said at the time of Innovative stake acquisition: "The IFL acquisition and our agreement with Jasper outline the company''s strategic intent for the processed foods business. We strongly believe in leveraging our in-house expertise in the group with FMCG, F&B and retail businesses."
Tata group''s planned foray into food retail may be in synergy with its TAJ SATS Air Catering and hotel business a joint venture between Indian Hotels and Singapore Airport Terminal Services, a subsidiary of Singapore Airlines.
TAJ
SATS Air Catering has a commanding 60 per cent share of the airline catering market
in India.
