The Hindu Business Line : Kanan Devan plans tea operations in Ethiopia

Kolkata, Aug. 22 Kanan Devan Hills Plantation Company Pvt Ltd (KDHP), in which Tata Tea Ltd (TTL) holds 20 per cent equity stake, is looking for opportunities in Ethiopia. This follows Ethiopia’s plan to grow tea on 10,000 hectares.

Confirming the development, Mr R.K. Krishna Kumar, Vice-Chairman, TTL, told Business Line here on Friday that a team from KDHP recently visited Ethiopia and submitted a report, which was being examined. “It is still at a preliminary stage,” Mr Kumar observed.

He, however, indicated that TTL was actively pursuing investment opportunities in the US and Russia. “In Russia, we are planning to enter into a joint venture and the European Bank for Reconstruction and Development is assisting us in this regard,” he said.

Earlier, while addressing shareholders at TTL’s annual general meeting here on Friday, Mr Ratan Tata, Chairman, said the company was constantly on the lookout for suitable opportunities anywhere in the world to supplement and complement its existing product range. “But we will not go in for acquisition for the sake of acquisition,” he observed. “The acquisition must have a strategic value to us.”

Expanding brand

In past few years, TTL, as he pointed out, had turned itself completely from the producer of bulk tea into a producer and seller of branded tea and now into a marketing company with an accent on beverages covering tea, coffee, vitaminised health drinks and other wellness beverages and mineral water. “Right now, we have 42 brands in 45 countries,” Mr Tata observed, complimenting Mr Kumar for providing the leadership to make the transformation a success.

Several shareholders urged Mr Tata to consider bonus issue, preferably in the ratio of 1:1, more so when the company was having a healthy reserve. Mr Tata said the company had always pursued a policy of rewarding the shareholders with higher dividend. In the case of bonus issue, he said the dividend rate would be low, which was not going to satisfy the shareholders.

Mr Percy Siganporia, Managing Director of TTL, in his presentation, said the future plans of the company would be to create corporate wealth for all stakeholders through building up of strong beverage brands and increasing the share of business from value-added business and constantly catalyzing change for sustainable growth.

The shareholders approved a resolution relating to appointment of Mr Peter Dylan Unsworth, currently Chief Executive Officer of the Tetley Group of companies, as a Director of the company.

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