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Tata Tea, an Indian tea major, has announced that the company will be focusing more on the expansion of its global distribution strategy in the Middle East, South America, South Africa and the Commonwealth of Independent States including Russia,
According to P. D. Unsworth, the Chief Executive of Tata Tea, "We would look at expanding our global distribution in these four regions through joint ventures or partnerships”. He was addressing the shareholders on the sidelines of the company's 46th annual general meeting.
He has also revealed that the company has plans for making four of its tea brands, Tetley, Tata Tea, Good Earth and Himalaya, global. He added, “We will be focusing on adding value to products”.
70% of the company’s revenues is contributed by the overseas operations of the company.
Apart from its global plans, Tata Tea's regional focus will be on brands like Vitax, Jemca, Eight O'Clock Coffee, Chakra Gold, Gemini and Kanan Devan.
Tata Tea has revealed that they plan to increase the price of the tea. "In the current year, there will be rise in commodity prices due to poor monsoon. Tea prices will go up. There will be bad crop due to shortage of rainfall," Tata Tea chairman Ratan N. Tata told.
"So we are looking at expanding operations and adding value for customers."
Emphasising that Tata Tea was no longer a tea company, he added: "It is a beverage company. We are now into branded products like coffee, water and ready-to-drinks."
Tata Tea's total last fiscal stood at Rs.4,907 crore, while net profit was Rs.701 crore.
