Business Daily from THE HINDU group of publications
Wednesday, Apr 04, 2007
ePaper
Business Daily from THE HINDU group of publications Wednesday, Apr 04, 2007 ePaper |
|
|
|
|
|
|
|
Corporate
-
Restructuring Agri-Biz & Commodities - Tea
Our Bureau
The wages, rations, medical benefits and other welfare provisions under the Plantation Labour Act would be honoured by the new company.
POSITIVE OUTLOOK: Mr. P. Siganporia, Managing Director, Tata Tea Ltd, at a press conference in Kolkata on Tuesday. — A. Roy Chowdhury
Kolkata April 3 Tata Tea Ltd (TTL) foresees no major hurdle in the participation of its employees and workers of Assam and West Bengal tea gardens in the equity of the Amalgamated Plantations Private Ltd, which is being formed following reconstitution of its present division North India Plantation Operations (NIPO) having 24 gardens in Assam and West Bengal. "I'm very positive about the participation of the employees and workers of NIPO in the equity of the Amalagamated Plantations Private Ltd, but I rule out 100 per cent participation," Mr Percy Siganporia, Managing Director of TTL, told newspersons here on Tuesday. "In Kannan Devan Hills Plantations Ltd in the South, the workers' participation in the equity of the company far exceeded our initial expectation and almost 97 per cent of them participated."
Revenue Streams
Mr Siganporia based his optimism on the encouraging response the company received from the employees and workers of Assam gardens and complimented the two unions, namely, Assam Chah Mazdoor Sangha and Assam Chah Karmachari Sangha for taking initiative in this regard. These two unions controlled the majority of the 20,000 workers employed in 20 tea gardens the company has in the State. In West Bengal, as he pointed out, the unions neither supported nor opposed openly the equity participation proposal as mooted by the management. "However, the unions have been generally supportive of our plan to develop revenue streams beyond tea to enhance long-term sustainability and trigger social transformation across the area," Mr Siganporia observed.
Service Conditions
In West Bengal, the Citu-affiliated Chah Bagan Mazdoor Union controlled the majority of the 10,000 workers employed in four tea estates the company has in the State. The second major union is the INTUC-affiliated National Union of Plantation Workers. Also, there are two other unions, namely, West Bengal Tea Garden Employees Association controlling the staff members and West Bengal Chah Mazdoor Sabha. Mr Siganporia allayed the fear of probable of erosion of the workers' interests in the new company. The service conditions of the workers and employees would remain unchanged in the new company.
Equity Holding
Giving an indication of the probable equity pattern of the Amalgamated Plantations Private Ltd, he said TTL's holding might be between 18 and 20 per cent, almost similar to TTL's equity holding in Kannan Devan. To the extent of the employees and workers participation, the equity holding of the Tata Investment Corporation would be adjusted. IFC, Washington, a World Bank affiliate, and IL&FS will hold 20 per cent each and GMS another 12 to 13 per cent. The size of the equity of the new company would vary between Rs 150 and 175 crore and shares are being offered at a par value which is Rs 10 each. "However, it will take a few more months for a clear picture to emerge," he added.
More Stories on : Restructuring | Tea | Tata Tea Ltd
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2007, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|