Tata Coffee plans Rs 100
Business Standard - July
Tata Coffee has proposed to set up a manufacturing
facility for freeze dried coffee at a cost
of approximately Rs 100 crore. The facility
is to have a capacity of 2,000 tonne per
annum and will be set up under the Export
Oriented Unit / Special Economic Zone scheme.
M D Kumar, vice-president
(finance), said, "The exact location
is to be finalised but it will be in South
India. The facility will cater to the demand
from European and Russian markets. It should
be operational by the next fiscal".
Tata Coffee is also set
to buy out six plantations in South India
of parent company Tata Tea for nearly Rs
Tata Tea managing director
Percy Siganporia said, "We have received
a favourable bid from Tata Coffee. The deal
will be to the tune of Rs 50-55 crore subject
to necessary government and other approvals.
It should be closed in a few months time".
Out of the six plantations,
one is in Kerala while the remaining are
in Tamil Nadu.
Tata Tea had earlier transferred
16 of its estates in South India to Kanan
Devan Hills Plantations Company Private
Ltd, which is principally owned by its employees.
As a consequence of this transfer, Tata
Tea's results for the quarter ended June
2005 includes exceptional income amounting
to Rs 10.72 crore, over and above operational
Siganporia also said that
as of July 1, a seventeenth plantation at
Devikulam in South India - which was thus
far under litigation - has also been transferred
to Kanan Devan Hills Plantations Company.
Tata Tea holds 19 per cent stake in Kanan
Devan Hills Plantations company. After the
further transfer of six plantations to Tata
Coffee, Tata Tea will still be left with
two more plantations in South India.