Tata Tea inks JV deal with Chinese firm
In what could be termed as a major move to access unexplored markets in Asia, the Tatas-controlled Tata Tea has inked a 70:30 joint venture with Chinese company Zhejiang Tea Import and Export Company for manufacturing tea and tea-related products.
By TNN |
MUMBAI: In what could be termed as a major move to access unexplored markets in Asia, the Tatas-controlled Tata Tea has inked a 70:30 joint venture with Chinese company Zhejiang Tea Import and Export Company for manufacturing tea and tea-related products.
According to the terms, the initial investment by the two companies in the project would be around $16 million (Rs 70 crore) and would involve setting up a facility at the economic development zone of Anji county, Zhejiang, 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.
Zhejiang Tea is based in Zhejiang province, one of the largest tea growing areas in China. ZTIE is the largest green tea exporter of China and has established better marketing network in China, Japan, Pakistan, Morocco and other parts of Africa. “The project is of importance since it helps the Tata group in reaching out to the Chinese and Far East markets,” Tata Tea managing director Percy Signaporia said.
The move gels well with the company’s plans to go global through acquisitions and joint ventures. The company, in the past, had acquired Good Earth in the US, Jemca in Czech Republic, Eight O’Clock Coffee in the US and a 30% stake in Energy Brands with an investment of $677 million. It had also recently acquired trademarks Vitax and Flosana in Poland.
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