Tata Tea to be restructured

Ratan Tata

Ratan Tata  

Special Correspondent

KOLKATA: The Tatas are looking at a change of name for Tata Tea Ltd (TTL) which reflects the nature of present operations, Ratan Tata, TTL Chairman told shareholders at the company’s annual meeting. “Looking to the future, TTL will no longer be only a tea company,” he said. He also said that poor monsoon had affected commodity prices, including tea, and the challenge would be managing operations of the company, given that input costs would be high. Company Vice-Chairman Krishna Kumar said the company had now moved out of plantation and was now positioned as a wellness beverage company.

He said that it was the group’s vision to convert the new company into a $10 billion company within five years from $1 billion now. “This will come through organic growth and transformation,” he said.

He said the aim was to make a financial integration of all the companies and transform all the individual companies into distinct brands.

Mr. Krishna Kumar said that while the registered office would remain in Kolkata, the corporate headquarters might be in London or wherever the axis of the company lies. He said that while the virtual restructuring had been done, the three companies listed in India — Mount Everest, Tata Coffee and Tata Tea — would need to be merged. Its overseas companies, which are 100 per cent subsidiaries, will also undergo a merger of their balance-sheets.

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