Business

Tata Tea to enter Russian, South American markets

KOLKATA: Tata Tea Ltd (TTL) is planning to enter the Russian market by setting up a joint venture by the end of the current financial year, R. K. Krishna Kumar, Vice-Chairman, said here on Friday.

Talking to reporters after the company’s annual general meeting here, he said, “We are working on setting up a path-breaking venture which will involve the setting up a unit in Russia for making tea, coffee and value-added products for tapping the market in Russia and the former CIS countries like Ukraine and Kazakhstan”, he said.

He said that joint ventures and other opportunities were being explored in China and South America. “A possible China joint venture will allow the company to look at Japan and the Far East with advanced and sophisticated products like green tea extracts and polyphenols, addressing the wellness segment.

Earlier Chairman Ratan Tata, while addressing shareholders, said Tata Tea was now transitioning from a plantation company to an integrated wellness and beverage company.

Mr. Tata said a Rs. 15-crore capital expenditure was planned by TTL in 2007-08. The stand-alone company had already suffered a negative impact of Rs. 3 crore on account of rupee appreciation which had hit consolidated operations by Rs. 10 crore. On the 2006-07 performance, he said TTL posted a 10 per cent growth in total income which was the highest-ever, while the post-tax profit increased by 64 per cent. A 150 per cent dividend was recommended. Earlier during a presentation, TTL Managing Director Percy Siganporia said the vision was to go beyond package tea with great tasting drinks.

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