The Tata Group has a significant presence in Pakistan through various enterprises such as Tata Spinning Mills, Tata Slaughtering Facility and TATA Energy Ltd.
TATA is one of the top players in the cotton yarn manufacturing industry and they are well-equipped to service both local and international clients. Their main mission is to establish themselves as a reliable brand within this competitive market.
Spinning Mills
Tata Pakistan is an extensive group of textile companies in Pakistan. Its major operations include Spinning Mills and Slaughtering facility.
As the leader of Pakistan’s textile industry, TATA Pakistan is one of the premier cotton yarn manufacturers and fully equipped to meet both domestic and international clients’ demands.
TATA Pakistan’s spinning units in Muzaffargarh, Punjab are among the most advanced in the industry. Boasting 19200 spindles for cotton yarn production, the company listed on both Karachi and Lahore Stock Exchanges.
TATA Textile Mills were the first spinning unit in Pakistan to achieve ISO certification in 1997 and have maintained this distinction ever since. Furthermore, their units have earned OEKO TEX Standard 100 certification as well as SGS Pakistan audit approval.
TATA Pakistan’s management team consists of highly-experienced professionals from top professional and business schools both inside and outside Pakistan. These highly qualified individuals dedicated to achieving the best results for both the company and its employees.
TATA Pakistan’s financial statements show that their revenue increased at a high rate during the fiscal year, both through exports and local sales. However, production costs rose, leading to an overall net margin reduction from 16.8 percent the prior year to 7.4 percent this time around.
Losses primarily caused by the Covid-19 pandemic. Despite this, the company’s revenue continued to increase at an impressive pace during the quarter ending February 2020.
On April 1, 2020, Island Textile Mills, Salfi Textile Mills and Tata Energy merged to form Tata Textile Mills – an important development in the recent wave of corporate consolidations within Pakistan’s textile industry.
Slaughtering Facility
TATA Pakistan boasts a cutting-edge slaughterering facility. This fully equipped facility equipped with carcass chillers for beef and lamb, blast freezers, remote temperature monitoring systems, as well as other advanced technology to meet customer requirements.
TATA Pakistan, situated in Karachi’s heartland, boasts an annual production capacity of 3.5 million head of cattle and 1.2 million goats. Their slaughterering facility operates under international health and safety guidelines.
This fully automated slaughtering plant designed to produce high-quality meat for the local market. Furthermore, it follows stringent halal regulations for hygiene and quality assurance during each step of the process.
Tata’s Halal Meat can find at restaurants throughout Karachi, Islamabad and Lahore. Additionally, the company provides a selection of value-added products to meet consumers’ needs.
TATA Best Foods’ partnership with Al-Khidmat Foundation expected to expand their global sales. The charitable organisation is contributing US$2.9 million towards maintaining a slaughterhouse run by TATA Best Foods that adheres to international food safety standards.
A growing trend towards halal foods expected to propel trade in the meat sector, which generates over USD 600 billion annually. This movement spurred on by consumers’ preference for wholesome, nutritious and safe products free from harmful chemicals and preservatives.
Meat and meat products are essential components of any healthy diet, providing essential vitamins and minerals. As such, demand for halal meat has grown dramatically around the world.
The global halal meat industry projected to expand at an annual rate of 6%, reaching USD 3 trillion by 2020 (KCCI, 2016). Halal food has long been a requirement for Muslims worldwide but now also becoming more and more appealing to non-Muslims due to its superior quality, hygiene standards and secure production methods.
Private meat processing companies have recently ventured into the global market place with an aim of satisfying global demands. Examples include K&N’s, Sufi group, Seasons foods, Pk Livestock, Zenith, Syed traders, Abedin international, Euro Premium meat Peshawar, Meat one, Tazij meat, Anis associates organic meat company and Ever fresh meat.
Food & Beverages
Tata Pakistan offers a diverse range of products such as tea, coffee, salt, pulses and spices that sold both domestically and abroad.
Tata Group believes the Pakistani food and beverages market is expanding rapidly, with their goal being to become a dominant player in this space. They plan to achieve this through joint ventures with companies both domestically and abroad.
Tata Consumer Products Ltd, a subsidiary of the 153-year-old Tata Group, has invested in companies like NourishCo Beverages Ltd and Soulfull. Furthermore, they’ve released a line of health supplements for women called Tata GoFit.
TATA Pakistan’s food and beverage business achieved its highest topline growth this fiscal year, due to strong export sales growth. Revenue rose to Rs 6 billion in value terms compared with last year’s figure of Rs 3.9 billion.
Gross margin increased to 16.8 percent from 14.6 percent the prior year, an improvement over its gross margin of 14.6 percent. Operating margin also improved to 91.9 percent from 86.5 percent due to net exchange gain and rebate on export sales that reduced production costs.
While the company has managed to stay profitable in India with its core product offerings of coffee, tea and salt, it plans on expanding into other markets. According to Ms Talwar, they are considering launching non-carbonated ready-to-drink beverages in the wellness space.
She stated that the company is investing in consumer branding and developing new beverage categories over the next five years, including tea as well as milk and juices.
Ms Talwar noted that her firm has previously ventured into the meat space. All of its products are hygienic and halal certified, she added.
In May 2013, Tata Global Beverages consolidated all their consumer product businesses under one roof. It boasts an expansive portfolio of brands such as Tetley Tea, Eight O’Clock Coffee and Tata Tea; plus, it sells packaged pulses, spices and salt.
Power
Tata Pakistan operates two thermal power plants. One at Mundra in Uttar Pradesh completed in 2012 and the other is situated in Maithon, Jharkhand. Furthermore, Tata Pakistan is involved in a joint venture of 74:26 with Damodar Valley Corporation for the construction of a 1,050 MW coal-based thermal power plant at Maithon.
Coal-fired plants at its facilities have consistently suffered substantial losses, prompting the company to make a strategic shift away from new coal-fired capacity. Today, coal plants make up less than 3% of net capacity additions while wind and solar make up 87% and hydro only 11% respectively.
Tata Power has decided that its coal-fired plants must sold through fire sale acquisition at 30%-40% of historical investment, due to India’s transition away from new coal capacity. As a result, Tata Power plans on increasing reliance on lower cost renewable energy for future capacity additions.
Tata Power-DDL is rolling out smart meters across its network and expanding into electric vehicle (EV) charging with the goal of integrating it with energy storage from their leading rooftop solar position. They are also committed to long-term sustainability with large on-site solar installations at commercial vehicle manufacturing facilities, including a 4 MWp installation in Pune that collectively mitigates over 10 lakh tonnes of carbon emissions over its lifetime.
As a nation, we have the capacity to utilize indigenous resources to generate affordable and clean electricity that will benefit us all for decades to come if the country is properly managed. Doing this could save $3 billion yearly in foreign currency liquidity by decreasing reliance on imported fuels for power production; this keeps prices stable while relieving us off volatile oil markets for our energy needs.
We must prioritize building the necessary infrastructure to efficiently manage and utilize our indigenous resources, particularly coal. Thar coal can provide affordable and dependable electricity with proper management for years into the future.
Recommended readings:
- All Pakistan Textile Mills Association
- Trends in the Food Processing Sector in Pakistan
- The City of Sargodha in Pakistan
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