The Hindu : Tata Coffee, a shrinking giant?

Online edition of India's National Newspaper
Monday, Jun 09, 2003

Business

Business

Tata Coffee, a shrinking giant?

By Jeevan Chinnappa

MADIKERI June 8. This is the story of a giant, which heralded a new epoch in coffee plantations. Tata Coffee Ltd., which was once the largest coffee conglomerate in Asia, appears to have lost track in the last couple of years.

Since its evolution as Consolidated Coffee Estates (CCE) in 1922 at Edinburgh in Great Britain, it was incorporated as the Indian Company in 1943 at Polibetta in Kodagu. It became Consolidated Coffee Ltd. (CCL) in 1967 and the Tata Tea integrated it as the Tata Coffee Ltd. in the early Nineties.

The previous Managing Director, M.A.Bopanna, had said that the company would acquire more plantations and expand, when the TCL took over the Coovercolly plantations in Somwarpet taluk.

Things have not been smooth for the company these days. The Tellicherry curing facility in Kerala was sold in 2000, in a bid to rid the "loss-making unit". The Mangalore curing facility was put on sale in 2001. It was bought for about Rs. six crore. It was stated to be a non-viable and defunct unit, as per the company sources. There is speculation that the property was "resold" for a hefty sum. Interestingly, the property is yet to be "handed" over to the first party who bought it from TCL.

The current Managing Director, M.H.Ashraf, who denied that the Mangalore facility was "undervalued", said the property was valued by the HDFC. Advertisements were released in national newspapers and 11 quotations were received.

Subsequently, a committee had gone though the quotations but as they were not up to the expectations, quotations were invited again.

The quotations were vetted by the same committee, and the highest bidder was picked, Mr. Ashraf said.

The Vice-President of the company, Hamid Haq, said the business was dealt from its office in Bangalore.

Incidentally, another property of the TCL at the Cantonment Ward in Mangalore, measuring less than two acres, was split and sold to various buyers in 2001. The TCL offered a voluntary retirement scheme (VRS) last year to 170 employees, mostly security personnel.

The TCL has again come out with VRS at its office in Polibetta, covering employees of the workshop. An aggrieved employee told The Hindu that the company had simultaneously announced a promotion list for top officials.

People of Kodagu hold TCL in high esteem for its contribution to the development of the district. It was due to the keenness of late Darbara Seth, Chairman Emeritus of the company, that the Coorg Foundation was established to promote cultural and traditional interests of Kodagu. The company's name in philanthropy is still admired.

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