Financial Daily from THE HINDU group of publications
Friday, Mar 08, 2002
Agri-Biz & Commodities
Corporate - Outlook
Tetley hopes to boost sales in premium tea segment
MUMBAI, March 7
TETLEY, the premium tea brand from Tata Tea Ltd (TTL), hopes to notch up sales of Rs 100 crore in a short period, according to Mr P.T. Siganporia, Deputy Managing Director, TTL.
The remark appears in a write-up posted on the official Tata Web site.
Tetley's domestic launch is housed in TTL. ``So, the turnover comes to us,'' Mr Anil P. Goel, Vice-President (Finance), TTL, had pointed out in an interview to Business Line last month. The premium tea segment is currently dominated by the Rs 200-crore Taj Mahal brand from Hindustan Lever Ltd (HLL).
TTL acquired Tetley two years ago in a 271 million pound-leveraged buy out (LBO).
On January 24, when TTL launched the Tetley brand in the premium segment of the domestic tea market, Mr Siganporia had pegged the domestic market relevant to Tetley at 15 million kg, tea bags having a share of 1.8-2.5 million kg. Some estimates attributed a six per cent growth rate to the segment.
But an estimate of likely sales was declined then. Amidst talk of TTL targeting a 15-18 per cent share of the premium market, officials merely saying that the main thrust would be to expand the entire segment and grow along with it.
On Tetley's offtake of tea from TTL, Mr Siganporia, now says, ``We are selling Tetley about 6,00,000 kg a year.''
According to him, Tetley increased its market share in UK, over the last calendar year, by 4 per cent to reach 25 per cent. Its global sales rose by 3 per cent and its earnings before interest and tax was higher by 34 per cent.
On the integration process of the two companies, Mr Siganporia said there were seven to eight areas involved such as tea sourcing, supply chain management, growth and development of new products and markets, management information systems and human resources.
Last month, top officials from either side had met in Goa to discuss the matter.
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