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Tatas to keep only 10% stake in shipping co

Ambarish Mukherjee

NEW DELHI, Sept. 27

JAPANESE shipping company Nippon Yusen Kaisha Lines (NYK Lines) plans to buy out a 40 per cent stake out of the 50 per cent equity holding of Tata Tea in Tata NYK Transport Systems (Tata NYK).

Tata NYK is a 50:50 joint venture between Tata Tea, the largest integrated tea company in the world, and NYK Lines, a leading international shipping company with diversified interests including logistics, oil wholesaling and real estates.

Established in 1993, Tata NYK is engaged in marine transportation, exports and imports, cargo consolidation and other transport-related activities and is largely responsible for import of CKDs in the country. Plans are also under way for projects such as port privatisation and inland container depots.

Tata Tea will sell 1,20,000 equity shares of Rs 10 each amounting to a 40 per cent stake in the company to the Japanese partners following which NYK Lines' holding in Tata NYK will go up to 90 per cent. Tata Tea will retain the remaining 10 per cent for the time being as a symbolic presence in the company.

Tata Tea's decision is in line with the company's plan to consolidate business activities and focus on core areas.

It is also a part of the restructuring process of the Tata group's shipping-related activities. The group has recently taken steps through group outfits for streamlining shipping-related activities.

The group flagship, Tata Steel, has firmed up plans to form a joint venture company with IQ Martrade Holdings Und Management of Germany with 49 per cent foreign equity to undertake cargo handling business and provide port-related services in various Indi an ports.

Another group company, Forbes Gokak, has formed a joint venture with Sea Consortium Ltd called Forbes Sea Consortium to provide shipping agency and related services at the Mumbai Port and Jawaharlal Nehru Port.