Tata Tea signs JV with Chinese company

Mumbai, May 8: Indian tea manufacturing major Tata Tea Ltd today joined hands with China-based Zhejiang Tea Import and Export Company (ZTIE) to float a joint venture in China.

The agreement involves setting up a company at the economic development zone of Anji County in Zhejiang, China for the manufacture and marketing of tea extracts.

The project will come up at an initial investment of US 16 million dollars, which will be funded by a mix of equity capital and borrowings. Tata Tea will hold 70 per cent of the registered capital in the JV.

The USD 713 million Tata Tea is eyeing the Chinese and Far East markets through the major deal that comes after the acquisition of Tetley Group in 2000.

The product range includes green tea polyphenols, cold and hot water soluble instant tea, liquid tea concentrates and other value added tea beverage products.

''The Project is of great strategic importance for the Tata Group as it gives exposure to the Chinese and Far East markets,'' Tata Tea managing director Percy T Singanporia said.

Tata Tea, the maker of five major tea brands in the domestic market, holds the second position in marketshare in domestic branded tea business.

UNI