Tata Coffee to focus on
value-added timber products
Hindu Business Line - September 1, 2006
Tata Coffee, as a part of its plan to optimise
the utilisation of its captive timber resources,
has entered into timber value addition for
manufacturing plywood and block boards under
the brand name "Tata Conswood".
The timber is harvested on sustainable basis
every year as part of estate cultural practice
and maintaining the ecological balance.
Tata Coffee's estates are spread over 18,454
acres (7,471 hectares) across Karnataka,
Kerala and Tamil Nadu.
Mr M H Ashraff, managing
director, Tata Coffee, said the company
was focused on developing value-added timber
products and the valuation of timber resources
was done internally. The company has designed
and developed fire retardant boards and
sound absorbing panels and is manufacturing
them on a small scale. These products are
being procured by Tata Motors for use in
building coaches, he said.
Further, Tata Coffee is
in the process of setting up a larger facility
in Mysore to commercially produce fire check
doors and wooden flooring, Mr Ashraff said.
"We plan to invest about Rs 9 crore
in the Mysore facility, which should be
operational by the end of this financial
year," Mr Ashraff said.
Tata Coffee believes that
the new products would add significant value
to its low-end timber and will be the future
growth driver for the profitability of the
timber division, which saw a 210-per-cent
growth in profits in FY2006.
to around 85 per cent of Tata Coffee's revenues,
while the rest comes from pepper, tea and
estate supplies such as timber.