Tata Tea to form joint venture with Zhejiang Tea Import and Export company, China
May 8, 2007

Tata Tea today signed a joint venture agreement with Zhejiang Tea Import & Export (ZTIE) Company of People's Republic of China at a ceremonial function held at the Government House, Anji county. The agreement involves setting up a joint venture company at the economic development zone of Anji county, Zhejiang, People's Republic of China, for manufacture and marketing of green tea Polyphenols, other green tea extracts, cold and hot water soluble instant tea, liquid tea concentrates and other value-added tea beverage products.

The company will own 70 percent of the registered capital of the joint venture company. The project will come up at an initial investment of $16 million (Rs70 crore) to be funded by a mix of equity capital and borrowings.

The signing ceremony was graced by senior state officials, Percy T Siganporia, managing director, Tata Tea, senior officials from Tata Tea, chief director of Xinghe Group, Shi Jian Qiang, chairman, ZTIE, and other senior officials from ZTIE.

Addressing the gathering after signing the historic agreement, Siganporia said, "This project is of great strategic importance for the Tata Group in reaching out to the Chinese and Far East markets. I wish to take this opportunity to thank the senior government officials and the management of Zhejiang Tea Import & Export Company for their cooperation."

Anji county, known as the City of Angel, is also called the 'China town of Bamboo' and 'China town of White Tea'. Thus the new factory will be amidst most beautiful surroundings and in the heart of green tea areas.

About ZTIE

Zhejiang Tea Import & Export Company is based at Hangzhou in Zhejiang province, which is one of the largest tea growing areas in China. ZTIE is the largest green tea exporter of China and has established wide marketing network in China, Japan, Pakistan, Morocco and other parts of Africa. The company's main shareholder is state-owned Xinghe group (54 percent), with the balance owned by the employees / managers. ZTIE has the much needed experience in running joint venture companies and has been exporting value-added branded green teas and tea machinery. The turnover of the company was $450 million last year.

ZTIE is amongst the first ISO 9002 certified international trading companies in China. The company's products have been awarded the prestigious Medal of Honour at the Monde Selection. With a dedicated and state-of-the-art R&D facilities, their products meet all the international quality parameters for tea.