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July 6, 2001
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Money > Business Headlines > Report July 6, 2001 |
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Tata Tea set to junk 4 brands in revampIshita Ayan Dutt Tata Tea has phased out support for four brands- Brahmaputra, Lucky Cup, Leo and Chola as part of its brand rationalisation. P Siganporia, deputy managing director, said these brands had shrunk in terms of potential for growth as well as profitability. While Leo catered to the economy segment of Maharashtra, Karnataka and Andhra Pradesh, Brahmaputra, a strong 100 per cent Assam tea, was marketed in Gujarat and Madhya Pradesh, while Chola was sold in Tamil Nadu. The focus of the company will shift towards some existing brands, namely, Tata Tea, Kanan Devan and Agni. Kanan Devan also happened to be Tata Tea's first brand to be packed in polypacks, followed by Tata Tea Premium. According to industry sources, Tata Tea enjoys a market share of 8 per cent, Agni of 4 per cent, Kanan Devan of 4 per cent and other brands from its stable 4-5 per cent. In the branded packet tea market, Tata Tea has a market share of 17-18 per cent. Siganporia, however clarified, some attrition in volume may take place owing to the phase-out of brands. Despite a sluggish tea market, Tata Tea has raised its prices marginally in the north and eastern regions, the hub of the brand. Siganporia said, "Prices have been increased by Rs 6-8, but only after quality improvement. We have improved the quality of our brand, vis-a-vis our competition and only then raised our prices." Riding on Tata Tea's corporate philosophy, 'customer is sovereign', the company is planning to tap the gaps in its product portfolio. The company is planning to launch a premium brand in the leaf category, which would be pitted directly against Taj Mahal from the Hindustan Lever Ltd (HLL) stable. Tata Tea is also toying with the idea of launching Tetley brands in India. Tata Tea already has a joint venture with Tetley, Tata Tetley, in south India, which is an export oriented unit. The Tata Tea scrip touched a high of Rs 192 and closed at Rs 184.70 on the Bombay Stock Exchange. The scrip closed at Rs 185.60 on the National Stock Exchange.
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