Tata Coffee to acquire 4,300 hectare of Tata Tea in South

Bangalore, July 15 | Updated: Jul 16 2005, 05:30am hrs
Tata Coffee Limited announced it has won a bid for acquisition of six estates of Tata Tea Limited in South India for an aggregate consideration of Rs 55 crore.

The bid is for acquiring a total 4300 hectares, with a production of 6 million kg of tea and 5 lakh kg of coffee.

Managing director of Tata Coffee, MH Ashraff said: "The acquisition will not only transform Tata Coffee into one of the biggest plantation companies in India, but will also increase shareholder value and make Tata Coffee a force to reckon with in the plantation industry."

The acquisition also gives Tata Coffee an opportunity to be in an alternate crop, a company statement said.

Historically, growing an alternate crop acts as a hedge during future downturn in commodity prices. Whenever tea has done well, coffee has been bad and vice versa. The expertise of Tata Coffee in plantations management will enable it to run the newly acquired plantations without any constraints and manage the same with existing overheads.

These are top estates of Tata Tea, enjoying highest productivity, high yield per hectare and the best prices in the market, it said.

PTI