Tata Tea trawls globe for buys
Consolidated Q2 net profit up 31% to Rs 287.44 crore.
Tata Tea Ltd (TTL) is actively looking for acquisitions across the globe, said Peter Unsworth, chief executive of Tetley, TTL’s UK-based subsidiary.
The company, which is transforming itself into a global beverages-and-FMCG company with the consolidation of is global units, is planning to enter parts of West Asia and South America through the organic route, i.e. engaging distributors.
The company is also looking at strengthening its presence in the African market, where it already has a joint venture. “There is need for us to increase global distribution. We have looked at South America at a number of occasions and are only looking at the organic route. We will enter some parts of West Asia through distribution,” Unsworth said.
Tata Tea Ltd (TTL) on Wednesday announced results for the quarter ended September 30, 2009, reporting consolidated net profit of Rs 287.44 crore, up from Rs 218 crore in the same quarter last year. Consolidated net sales rose to Rs 1,397 crore, up from Rs 1,180 crore in the same quarter a year earlier, the company said.
On a standalone basis, net profit stood at Rs 258 crore, while net sales stood at Rs 424.33 crore, up from Rs 320.55 crore.
The company effected a 15-20% price increase across the board during the quarter following a 30% increase in the prices of tea.
However, “The branded tea market has slowed down, especially in the urban markets,” Sangeeta Talwar, executive director. Tata Tea, said.
Talwar said TTL’s non-carbonated drink brand T!ON, which is currently in test phase in Tamil Nadu, has already garnered 3% market share in its category. However, the company does not plan a national roll-out soon.
In September, Tetley, through European Bank for Reconstruction and Development, acquired a 51% stake in Grand, Russia’s second-largest beverage company. Russia has a large tea-drinking population and through Grand — which is focused on regions outside the big cities — TTL hopes to gain access to newer markets.
The company, which is transforming itself into a global beverages-and-FMCG company with the consolidation of is global units, is planning to enter parts of West Asia and South America through the organic route, i.e. engaging distributors.
The company is also looking at strengthening its presence in the African market, where it already has a joint venture. “There is need for us to increase global distribution. We have looked at South America at a number of occasions and are only looking at the organic route. We will enter some parts of West Asia through distribution,” Unsworth said.
Tata Tea Ltd (TTL) on Wednesday announced results for the quarter ended September 30, 2009, reporting consolidated net profit of Rs 287.44 crore, up from Rs 218 crore in the same quarter last year. Consolidated net sales rose to Rs 1,397 crore, up from Rs 1,180 crore in the same quarter a year earlier, the company said.
On a standalone basis, net profit stood at Rs 258 crore, while net sales stood at Rs 424.33 crore, up from Rs 320.55 crore.
The company effected a 15-20% price increase across the board during the quarter following a 30% increase in the prices of tea.
However, “The branded tea market has slowed down, especially in the urban markets,” Sangeeta Talwar, executive director. Tata Tea, said.
Talwar said TTL’s non-carbonated drink brand T!ON, which is currently in test phase in Tamil Nadu, has already garnered 3% market share in its category. However, the company does not plan a national roll-out soon.
In September, Tetley, through European Bank for Reconstruction and Development, acquired a 51% stake in Grand, Russia’s second-largest beverage company. Russia has a large tea-drinking population and through Grand — which is focused on regions outside the big cities — TTL hopes to gain access to newer markets.