Flutter in tea industry after Tata Tea's exit

Guwahati, Nov 01 (UNI) There has been flutter in the tea industry of Asom after tea major Tata Tea's announcement of grand exit from the plantation business in Dooars and Asom.

''It is on the cards but we thought that Tata Tate would have a larger stake in the future entity,'' said a top official of rival tea company.

The Tata Tea would have just 20 per cent stake in the new venture as they announced its exit from the plantation business leaving its infrastructure to a new company where they will be a minority player, which would allow them to concentrate on the beverage sector.

The tea business, however, did not react sharply to the development but the small tea growers were a bit nervous as they have developed a good rapport with the 20 tea estates of Asom by selling green leaves and constantly getting a good price.

Addressing a press conference here yesterday, 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, which is yet to be named has International Financing Corporation (IFC), International Lease and Financial Service(IL&FS), Globally Managed Services, besides, the Tata Tea.

Each of these players would have 20 per cent stake with employees having 21 per cent stake.

Mr Bora announced that 31000 employees would have the majority stake and Tata Tea would ensure that their future would remains intact. But the employees were a bit skeptical about the development and not sure whether to invest or keep their own divesting option open.

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

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