Tata Global Beverages acquires the branded tea business of  Dhunseri

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BiznextIndia : Tata Global Beverages Limited has entered into a non-binding term sheet to acquire the branded tea business of Dhunseri Tea & Industries Limited, for an aggregate consideration of up to Rupees One Hundred and One Crores. The proposed acquisition shall be subject to due-diligence and applicable approvals.

The Dhunseri branded tea business currently has the brands “Lalghoda” and “Kalaghoda” which are among the leading local brands in Rajasthan, a market dominated by local players. This move is in line with Tata Global Beverages’ ambition to grow its branded tea business in India.

Q4 Revenue up 5%

Tata Global Beverages has reported 5% increase in revenue in the 4th quarter. Profit before exceptional items and tax at Rs 161 crores is higher by 24% as compared to the corresponding quarter of the previous year mainly due to higher sales, lower commodity cost in International markets and improved performance of non-branded business.

On the other hand,for the full year, revenue from operations increased by 6%. Profit before exceptional items and tax at Rs. 786 cr is down by 1% mainly due to commodity costs in India and higher spends behind brands.  Group net profit for the Quarter and Full Year is lower mainly due to higher exceptional items, higher share of losses from JVs and associates and higher one-time tax credits in the previous year.  The company has declared dividend of 250%.

For the full year, the India tea business clocked a 9% volume growth and 7% value growth across its brands. For the quarter India registers a 12% volume growth and 11% value growth.

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