Acquisitions brew in branded tea market

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Mumbai, Oct 9: Even as Godrej Hershey Foods & Beverages Ltd is scouting for acquisitions in domestic tea markets, competitor Tata Tea Ltd is looking for partners in the global beverages markets. Meanwhile, regional players in the branded tea sector are scouting for local brands to grow their business. Clearly, the accent seems to be on ‘acquisitions & mergers’ in the Rs 4,500-crore branded tea sector in India. With increasing competition, the sector will witness a lot of action in the next three months. According to industry sources, the Godrej group is aggressively looking for acquisitions to scale up their operations across the country. “Currently, the company is in talks with a slew of regional tea brands,” added the sources.

When contacted, Adi Godrej, chairman of the Godrej Group said, “We would look at strategic acquisitions for our tea brand.” However, he was reluctant to divulge details.

Tata Tea Ltd, the world’s second largest tea company is scouting for acquisitions in the specialty tea sector in the US. According to Percy Siganporia, MD of Tata Tea Ltd, the company is looking at opportunities in global markets. “Our vision is to be a global beverages company. We have received the offer to acquire Cadbury’s global beverage business through a strategic investor, but we have declined the offer,” he added.