Tata tea exits from plantation business

Guwahati, Oct 31 (UNI) The tea major, the Tata Tea today announced its exit from the plantation business leaving its infrastructure to a new company where they will be a minority player, which will allow them to concentrate on the beverage sector.

Addressing a press conference here today, vice-president of the North India Plantation of the Tea Major Dipankar Bora announced that the formal transfer would be completed by March 31 next year.

The new company, yet to be named, has International Financing Corporation (IFC), International Lease and Financial Service(IL &FS), Globally Managed Service beside the Tata Tea. Each of these players will have 20 per cent stake with employees having 21 per cent stake.

Mr Bora announced that 31000 employees will have the majority stake and their future would remain intact and the Tata Tea would ensure that.

The Tata Tea exit from the plantation business after 23 years of business after recurring labour, infrastructural manpower problem beside falling price and high production rise.

'' As we are concentrating on the beverage sector, we are reducing our stake, '' said Mr Bora. With 24 tea estates and a turnover of Rs 224 crore in the North India, the Tata Tea has been the market leader.

'' We want to divest now, '' said Mr Bora adding various factors had prompted the management to take the decision so that new structure can come together.

The new entity, beside being in the traditional tea business, will also concentrate on the alternative crop using the wasteland for optimum utilization.

MORE UNI MT SJC RN1851