Tata Tea plans JV in Russia; eyes LatAm
Business Standard — August 10, 2007

Tata Tea is firming up plans to form a joint venture for a manufacturing plant in Russia and is also looking at new markets of South America and the Far East.

The Russian venture is likely to be put in place in the next six to seven months and this would be a 'pathbreaking venture' of the company, RK Krishna Kumar, vice-chairman, Tata Tea told reporters after the annual general meeting today.

He said there would be a big Russian partner and a few smaller ones with whom Tata Tea would tie-up for the manufacturing and processing plant to make beverages such as tea and coffee. The plant would be a stepping-stone for catering to CIS countries like Ukraine and Kazakhstan.

The official said after successfully acquiring brands like Tetley and Glaceau among others, the company was now looking at the markets of South America as well.

"US is the most exciting market for beverages," he said.

"As part of our global strategy, Tata Tea will also like to spread its wings to countries in the Far East," he said.

Tata Tea had also recently acquired 70 per cent stake in a Chinese company.

Earlier, replying to shareholders' queries, Tata Tea Chairman Ratan Tata said the company was also looking at the food processing business.

He said the surplus fund generated would be used to finance acquisitions. However, he dismissed reports that Tata Tea was eyeing US company AriZona, saying that it was speculative in nature.