Apparently, Tata Tea is seeking opportunities to expand its domestic as well as international beverage portfolio beyond tea and coffee. In line with its strategy, the company has launched a tea and fruit based cold beverage in three variants—Mango Rush, Peach Punch and Apple Buzz—in a 400 ml pet bottle strategically priced at Rs22. It appears this new beverage is tapping into the health market segment in India as “key changes in Indian society are driving the food and drinks industry, particularly the demand for processed, health, packaged and ready-to-eat food products (Report Buyer, 2008, Pg. 1).”
Who is Tata Tea? According to their website, Tata Tea was established in 1964 as a joint venture with UK-based James Finlay and Company to develop value-added tea. “The Tata Tea Group of Companies, which includes Tata Tea and the UK-based Tetley Group, today represent the world’s second largest global branded tea operation with product and brand presence in 40 countries. Among India’s first multinational companies, the operations of Tata Tea and its subsidiaries focus on branded product offerings in tea but with a significant presence in plantation activity in India and Sri Lanka.
The consolidated worldwide branded tea business of the Tata Tea Group contributes to around 86 per cent of its consolidated turnover with the remaining 14 per cent coming from Bulk Tea, Coffee, and Investment Income. The Company is headquartered in Kolkata and owns 27 tea estates in the states of Assam and West Bengal in eastern India, and Kerala in the south.”
Sharekhan maintains its buy rating onTata Tea with a price target of Rs 853 in its March 26, 2009 research report. “In line with the strategy, Tata Tea, together with European Bank of Reconstruction and Development (EBRD), has decided to acquire a 51% stake in Grand, a leading player in the Russian economic beverage segment (NSEGuide, 2009).
In case you are wondering… here is the exchange rate (India to U.S. Dollars):
|Currency||In US Dollar||Per US Dollar|
|Hong Kong Dollar||0.12904||7.74980|