The Hindu Business Line : Tata Tea to merge Tata Tetley

TATA Tea Ltd has informed the stock exchanges that it has decided to merge Tata Tetley Ltd, a Kochi-based subsidiary and originally a 50:50 joint venture between Tata Tea and Tetley, with itself.

The joint venture was formed before the Tatas acquired Tetley. The company is a 100 per cent export-oriented unit. Some time ago, the Tatas bought more than 50 per cent of the shareholding in this joint venture company. Subsequently, it became a wholly owned subsidiary of Tata Tea. As a follow-up, Mr P.T. Siganporia, Managing Director of Tata Tea, said the board decided to merge the subsidiary with the company.

He further clarified that the move was in no way connected to the company's recent decision to divest its plantation business in South India. "The annual business of this subsidiary is approximately Rs 50-60 crore and it will be added to Tata Tea's turnover," Mr Siganporia told Business Line.

Asked whether the merger was a prelude to a bigger merger between Tata Tea and Tetley, he said that there were no such plans as of now. "It will be sheer speculation to think of such a thing", he added.

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