A refreshing beverage from tata tea

A refreshing beverage from Tata Tea

Tata Tea Ltd. is a private company founded by Ratan Tata the chairman in 1964 in Kolkata, India. Tata Tea Ltd. also known as Tata-Tetley is owned by Tata Group of India which is the second largest manufacturer and distributor of tea in the world. The other commodities that it sells apart from tea are pepper, cardamom, coffee and spices.

In India, Tata Tea is the largest tea brand whereas in UK and Canada Tetley is the largest tea company. By volume it is the second largest in US.

Tata Tea Ltd. has strong presence in India and Sri Lanka owning 51 tea estates especially in West Bengal, Assam and Kerala.

It is the largest manufacturer of Assam Tea and Darjeeling Tea. With Ceylon Tea manufacturing it is ranked as the second largest manufacturer. 70 million kilograms of tea is manufactured in India by Tata Tea Ltd. and its subsidiaries. It has 54 tea estates and 10 tea blending and packaging factories. Apart from India and Sri Lanka Tata Teal Ltd. has spread its tentacles to 40 other countries as well. In addition to Tata Tea and Tetley other major brands in the Indian market associated with Tata Tea Ltd. are Gemini, Chakra Gold and Kanan Devan tea.

Tata Tea Ltd. is mainly into foods and beverages. Off late it is trying to revamp its group companies and consolidate all its businesses such as water, soft drinks and tea into a single entity to ease its operational issues. As part of it soon there would be news about consolidating the Mt Everest Mineral Water with Tata Tea and Himalayan brand with Tata fold.

The herbal tea brand of Tata Tea is called as Good Earth. It would soon be outsourcing the manufacturing of its herbal tea brand to an existing joint venture in US to cut down costs as its production is miniscule in the US market. It has acquired this herbal brand in US, Good Earth from Good Earth Corp in addition to several other buyouts. So far Good Earth has been manufactured at the facilities of Tata Tea in US. But going forward it would be manufactured and produced by Southern Tea which can help them accrue nearly 5 crore rupees or $1 million. Britain’s tea brand Tetley is currently manufactured by Southern Tea for the US market.

To eliminate unwanted administrative costs Tata Tea wants to restructure its management operations in US market as well. It is concentrating on its subsidiaries in US which are Eight-O-Clock Coffee Co, FMali Herb Inc, Tetley, a plantation at Plant City in Florida along with Good Earth brands. Amongst these brands Eight-O-Clock Coffee belongs to Tata Coffee whereas FMali belongs to Tetley US Holdings which is a subsidiary of Tata Tea.

Summary

Despite the restructuring and reframing happening within the various subsidiaries of Tata Tea company it still continues to reign the tea industry making its presence strongly felt in the US and Indian market. Apart from the business point of view its ownership of the largest tea estates is a proof of the fact that it is in fact the largest manufacturer of tea in India.

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August 2019
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