The Hindu Business Line : Tata Tea forms venture with Chinese firm Zhejiang Tea

The joint venture agreement was signed on Tuesday in China between Tata Tea Ltd and Zhejiang Tea Import & Export Company (ZTIE), a state-owned company and also the largest green tea exporter of China.

"The company will own 70 per cent of the registered capital of the joint venture company and the project will come up at an initial investment of $16 million (Rs 70 crore) to be funded by a mix of equity capital and borrowing," according to a press release issued by Tata Tea.

Green tea products

The joint venture company, to be located at the Economic Development Zone of Anji County, will be engaged in the manufacture and marketing of green tea polyphenois, other green tea extracts, cold and hot water soluble instant tea, liquid tea concentrates and other value-added tea beverage products.

Anji County

Anji County, according to the release, is also called the "China Town of Bamboo" and "China Town of White Tea" and the new factory will be located in the heart of green tea producing areas.

ZTIE, based at Hangzhou in Zhejiang province, which is one of the largest tea growing areas of China, is 54 per cent owned by the state-owned Xinghe Group and the balance by the employees and managers.

With an annual turnover of $450 million, it has a marketing network spread not only across China but also Japan, Pakistan, Morocco and other parts of Africa, the release adds.

Mr Percy T. Siganporia, Managing Director, of Tata Tea Ltd; Mr Shi Jian Qiang, Chairman of ZTIE, and the senior officials of both Tata Tea and ZTIE were present at the signing ceremony held at the Government House, Anji County.

More Stories on : Alliances & Joint Ventures | Tea | Tata Tea Ltd

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