Tata Tea diversifies its operations in north India too

Mumbai, Feb 19 (UNI) In its bid to replicate its successful diversification experience in South India under the name of ''Kanan Devan'', Tata Tea has announced the structure for the new company to be formed to take over its North India Plantation Operations (NIPO).

The new entity christened ''Amalgamation Plantation'' is to be headed by Hardeep Singh and will become operational from April 1.

Briefing the media here today, Tata Tea vice chairman R K Krishna Kumar said, ''Five per cent of the land that has been been allotted to us by the Assam government is meant for non-tea operations.'' The total land owned by the company in north India is 34,000 hectares and we hope the West Bengal government too will do the same for our company, he added.

Tata Tea will continue to hold up to 20 per cent of equity in both North and South India organisations. Apart from it, each of the three principal shareholders -- International Finance Corporation of World Bank, IL&FS (Infrastructure Leasing&Financial Services Ltd) and GMS (Globally Managed Services) would be holding 20 per cent stake in the newly floated organisation. Moreover, the employees of the new company would also be holding a part of the stake in the organisation.

The areas that the new company is looking at include fisheries, floriculture, organic farming and others.

The entire valuation of the deal has been calculated at Rs 360 crore. However, Mr Krishnakumar did not disclose the amount that have been paid by IFC, IL&FS and GMS for owning the stake in the newly floated organisation.

Commenting on the new organisation, Mr Singh said, ''It will be a solution provider as we are going to explore the capability beyond tea.'' UNI KKD MAZ AG1912