American cuppa for Tata - IIPM Knowledge Centre

Tata Tea must completely exit tea production in India and invest abroad As the saying goes, ‘every cup of tea represents an imaginary voyage’. But whenever Tata group chairman Ratan Tata reclines on his chair, sipping tea and thinking of ways to take his company on an inorganic voyage, all he needs is a plan that suits him to a ‘tee’. Despite a 17% rise in its net profits (quarter ending September 2005) as announced on October 28, Tata Tea faces a decline in future demand for tea in India. Tata Tea has thus been on the lookout for acquisitions abroad. It recently embarked on a US sojourn by buying California-based fruit and herbal tea brand Good Earth on October 14 in a deal worth $32 million.

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Source :- IIPM Editorial, 2006