The combined global turnover of Tea brands by the Tata Tea group of companies, including the Tetley group, is now over Rs 2,900 crore. This was pointed out by the company in its latest annual report for 2002-03.

This would mean the turnover of the group’s global branded tea business now accounts for approximately 86 per cent of the consolidated turnover. This is significant as the company, as part of the broader group thinking, is transforming from a commodity operation to a worldwide consumer products company. This transformation has greatly strengthened Tata Tea’s growth and stability of its performance and profitability.

During the last fiscal, the company managed to stabilise and grow the domestic branded tea operations.

Tata Tea Premium, the flagship brand of the company, registered a growth of about five per cent in the second half of the year, reporting volumes similar to those in the previous year. Tetley tea bags, which were introduced towards the end of last year, also received encouraging consumer response, the company said.

Volumes of other tea brands, such as Chakra Gold and Gemini, were more or less at the previous year’s level, but in Kanan Devan and Agni the company had to accept some loss of volumes. The company said that necessary action has been taken to arrest the decline.

The group also recorded improved market shares in the UK, Canada, France and Australia, as well as a 30 per cent increase in earnings before interest and tax. Tetley, which was acquired by Tata Tea, maintained strong marketing pressure in its principle markets, resulting in improved market share.

During the last fiscal year, Tetley group restructured its operations in the US by selling its Private Label business, outsourcing its entire manufacturing operations to a joint venture company and formed another joint venture company to retain a presence in the food services sector.