Tata Tea to form new entity holding plantation by April

Kolkata, Nov 02 (UNI) Tata Tea Ltd would divest the North India Plantation operations, comprising estates in Assam and West Bengal, into a new entity with effect from April 1, 2007.

The new entity would be based on independent professional valuation, company's managing director P T Siganporia told reporters here.

Widespread employee participation in the equity of the new entity is expected, Mr Siganporia said. The new entity would have equity holding by strategic development partners-- IFC, ILFS, GMS and others along with Tata Tea.

The total transaction value stood at Rs 359 crore, the Managing Director said.

The Guwahati-based new entity, the name of which had not yet been finalised, would not only concentrate on tea as the main crop but would also aggressively diversify into other cash rich crop/produce to enhance livelihood and prosperity of the enterprise.

" We have already obtained the Asom government's approval for using five per cent of the hectarage held under the estates for non-tea activities like pisciculture, ginger cultivation among others, " Mr Siganporia said.

" A similar proposal has been put before the West Bengal government for approval, " he said.

The divestment from the plantations would help Tata Tea concentrate in branded commercial businesses, which provide around 80-86 per cent of its business.

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