Tata Tea looks to centralise operations

Tata Tea looks at centralising buying, selling and marketing activities in Kolkata. This is part of its strategy to move from regional plane to national level.

The company has two separate units, the North Indian Plantation Operations and South Indian Plantation Operations.

Tata Tea Managing Director Percy Siganporia was not available for comment.

The company has different tasting and blending units for the north and south. Sources said blending for the northern region was in Kolkata and Guwahati and for the south in Bangalore.

The company is now moving towards combining the units. The sources explained that different blending operations for the two regions made sense because there was a distinct difference in taste profile in the two regions but now there is a shift towards a national blend.

Operations were earlier plantation-linked and the company is now gradually moving towards a market-oriented company.

Tata Tea has decided to exit its plantation operations. The company is moving away from plantations and simultaneously growing its branded operations with a slew of acquisitions.

Tata Tea has already divested its south Indian plantations in favour of employees but still retains 18.2 per cent stake in Kanan Devan.

Kanan Devan Hills Plantation Company, established on March 31, 2005, has major interests in production and manufacture of black tea at its 17 estates in Kerala.

The company is pursuing a different model for the north Indian plantation operations, where alternate crop models are being experimented.

Tata Tea is in discussions with potential partners from agro-based industries to pick up stake in NIPO. NIPO comprises four estates in Dooars and 20 estates in Assam. In contrast, Kanan Devan has 17 estates.

Tata Tea has been on integration mode for a while. The company had embarked on integrating operations of Tetley with itself and was giving finishing touches to it.

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