Tata Tea plans to expand in US
in the US, where it plans to gain a greater share of the specialty
tea market.
The company has a significant presence in more than 35 countries after buying the worldwide tea business of UK-based tea major Tetley Tea five years ago.
It is now aggressively looking for acquisition opportunities in the United States and has said it is in talks with a number of potential takeover targets.
"We have initiated dialogues with a number of prospective companies. However, talks are still in the discussion stage and nothing specific or concrete has materialised at this point and it would be premature to comment on timeframe," Tata Tea managing director P T Siganporia said in a statement.
However Indian press reports this week said the group is close to buying two mega tea brands in the US, which could cost around $100 million each.
"We are constantly scanning the environment to look at opportunities for step change growth through mergers, acquisitions or strategic alliances in the area of business that will complement our portfolio operations," Siganporia said when enquired about possibility of taking over the US specialty tea brand - Good Earth.
The company is looking at strengthening of specialty tea segment and herbal tea which is growing very fast. In the last three years it has grown by 50 per cent in the United Kingdom and 8 per cent in US, double the growth in regular tea.
Branded teas contributed 88 per cent of the consolidated turnover of the group last year, with the remaining 12 per cent coming from bulk tea, spices and investment activities.
