Tata Tea’s new vision

The Tata Tea group of industries wants to increase its operating size from Rs 3,151 crore to Rs 7,000 crore in the next three years.

The growth will be both in organic, as well as inorganic beverage space. Wellness products from tea derivatives, identified as good anti-oxidants are also being targeted by the company.

The chairman of the company, Ratan Tata said that the group would be reconnoitering for strategic acquisitions for foray into new products. He revealed that the group is also eyeballing wellness products which will be derived from tea.

The managing Director, P.T Siganporia pointed out that at present, the company holds only 45% space in the beverage sector globally and this has to be expended.

The Vice chairman of the company, R.K Krishna Kumar held that the company is planning its growth aggressively, especially in the global arena. It is eyeing for intensive growth in the US. After lapping up Good Earth and Eight O'Clock Coffee, Tata Tea group is now looking for further acquisitions in US, and is currently working on two to three proposals.

R.K Krishna Kumar said that the acquisition of the Tata Tea in the US will be bigger that the Tetley Tea deal in the UK.

The company prefers the US since it is the key market in the beverage business. Tata Tea will be able to cater the needs of Europe, China and Russia through exports from the US.

After Tata Steel, Ratan Tata has set his sight on Tata Tea Ltd where the Group now plans to up its holding from the existing 28.60%, preferably through creeping acquisition.