Tata tea case study business finance general scribd. Tata global beverages ltdpdf a progressive digital. Baixe no formato docx, pdf, txt ou leia online no scribd. Tetley is a beverage manufacturer founded in 1837 in yorkshire, england. Analysts had expressed doubts as to whether the deal would.
A copy of the same will also be uploaded on the companys. Tata tetley limited has the activity of tea,tea plantation,tea products. Tata tea to acquire vitax, flosana trademarks in poland. Tetley tea, inventor of the teabag and maker of the traditional english cuppa, is being bought by tata tea of india. Tata tea, a rs 885crore company, has a joint venture with tetley in india, called tata tetley, which is a 100 per cent exportoriented unit located in cochin. It is the worlds secondlargest manufacturer and distributor of tea and a major producer of coffee tata consumer products limited markets tea under the major brands tata tea, tetley. Post acquisition of tetley, tata tea restructured its business to emerge as a brandcentric beverage company with operations in all major global markets. We would like to show you a description here but the site wont allow us. Currently tata tea and the ukbased tetley group have the worlds second largest branded tea operations with a presence in 40 countries. Tetley was the first company to sell tea in tea bags in the united kingdom in 1953. The major driving force behind tata tea tetley deal, was the fact that tetley fitted.
Tata tea tetley the first ever leveraged buyout lbo, largest crossborder acquisition by any indian company tata teas strategy of pushing for aggressive growth and worldwide expansion. Recently, it completed sale of its controlling stake in tea plantations in india to transform itself from a. Internationally, the company sells bulk tea that is blended and sold by branded tea marketers. Tata global beverages ltdpdf a progressive digital media. In step with its stated global expansion plan, tata tea acquired good earth,a specialty tea brand in the us,for usd 32 million.
Apple and beats electronics from ashridge business school duration. Tea gardens to tetley, a brief history of indias tata tea. Tata tea on thursday said it will acquire the vitax and flosana trademarks in poland, from premium foods for an undisclosed amount. The firm said tetley will have single new logo with a tagline free your mind. While tata was strong on the production front, tetleys strengths lay in marketing. In 2000,tata tea took over tetley tea, the company which was twice tata teas size and had introduced the world to tea bags, for. Among these 2 brands owned by tata tea company, tata tea is the largest brand in india whereas tata tetley is claimed to be the largest tea company in united kingdom and canada and also the 2nd largest in the united states in terms of volume. In 2002, tata tea launched this international brand tetley in indian market. Ratan tata, architect of tetley acquisition, invests in. The companys businesses were in west asia and poland. Tata tea and tetley 1 mergers and acquisitions leveraged buyout. The acquisition of tetley made tata tea the second biggest tea company in the world with the expected combined turnover worth rs. In 2001, after tata tea took over the giant tetley in a leveraged buyout, it was presented with problems.
Friends here is the complete presentation on tata tetley merger case hope it would be beneficial for u all thanks. Tata tea s subsidiary, the tetley group, has signed a definitive. Tata tea, indias largest tea producer, is to integrate operations with uk tetley group. Tata global beverages is undertaking an image makeover of its flagship tea brand tetley, as part of a strategy to reposition the product and bring about uniformity across global markets.
Nov 10, 2008 post acquisition of tetley, tata tea restructured its business to emerge as a brandcentric beverage company with operations in all major global markets. Covers aspects like deal motives, synergies, postmerger integration among others. In many ways, the audacious acquisition of the summer of 2000 has defined the growth of tatas and of india inc. It is the largest tea company in the united kingdom and canada, and the second largest in the united states by volume. The company markets tea and coffee products under tata tea, tetley, jemca, vitax, eight oclock coffee, grand coffee and joekels brand names, while it merchandises packaged water under himalayan, tata water plus, and tata gluco plus brand names. The mergerbrought with it a greater market penetration. The company has portfolio of five brands in the domestic market namely tata tea,tetley, kanan devan, chakra gold and gemini. Indeed the tetley acquisition was almost the clarion call. Tata tetley group 1 free download as powerpoint presentation. Ratan tata, architect of tetley acquisition, invests in specialty tea firm teabox business sulekha nair jan 28, 2016 08. The failure of tetley to make the required cashflow targets and the high debt burden required tata tea to make some changes. In 2000, the company had acquired the uk tea producer tetley for. Leveraging the tetley acquisition further,in mid2003, tata tea launched tetley in pakistan. The merger presented an array of verticalintegration synergies, but the.
This was followed by a joint venture with aci in bangladesh in the same year,to introduce tetley in the country. In 2000 he shelled out 435 million for tetley tea, making tata the worlds no. Tata tea acquires stake in russian beverages maker grand. Tata motors, tata tea, tata steel, tata consultancy services tcs,etc. Kiran a05 abhay sakharkar a10 aditi lakhe a20 industry profile.
Pdf overseas mergers and acquisitions by indian enterprises. Tata tetley deal the case attempts to give students an. View similar attachments and knowledge in strategy. Menon road, willingdon island, kochi, kerala kochi. Tata consumer products limited, formerly tata global beverages limited, is an indian. Tata teas subsidiary, the tetley group, has signed a definitive. The company has a 100% exportoriented unit kosher and haccp certified manufacturing instant tea in munnar, kerala, which is the largest such facility outside united states. Tata has a history of more than 100 years and the ownership of a number of wellknown brands such as tetley tea. This seems understandable because of the three major factors. It has a significant presence in over 35 countries. In late 1999, tata tea, was presented with the opportunity of acquiring tetleys tea, the worlds second largest tea brand which enjoys strong market positions in the uk, us, canada, and australia and seeks to expand into other western european. Branded teas contribute 88% of the consolidated turnover of the group, with the remaining 12% coming from bulk tea, spices and investment activities. The company is owned by the tata group in india and trades under 2 major brands. This deal which was the biggest ever crossborder acquisition, was also the firstever.
The tata group is a diversified group providing services to varied clients. The company markets tea and coffee products under tata tea, tetley, jemca, vitax, eight oclock coffee, grand coffee and joekels brand names. They toil from dawn until dusk, often spraying industrial pesticides with little protection, and going back to rundown homes that are open to rain and wind. Introduction in the summer of 2000, indian corporate fraternity witnessed path breaking achievement new chapter in indian corporate history tata tea acquired the uk heavyweight brand tetley for.
Tata tetley deal the case attempts to give students an understanding of the from accounts 2332 at amity university. Tetleys manufacturing and distribution business operates in forty countries, selling over sixty branded tea bags. Tata, a strong player at home, became a global competitor with this acquisition. The world bank, tata and enduring abuses on indias tea plantations pdf. Top 10 tea companies in the world 2018 top tea brands. After the acquisition of tetley, the company moved australian operations into tata tetley and ramped up capacity of the plant. An important step for tata tea was the acquisition of the tetley group based in united kingdom. Tell tetley parent tata global beverages to comply with. In 1952, in an early example of cross promotion, petula clarks single anytime is tea time now was used to advertise tetley on radio luxembourg. The b case highlights some of the integration steps undertaken by the newly appointed integration team. Tata tea finally tasted victory on march 10, 2000 when it bought tetley.
Tata global beverages limited is an indian multinational nonalcoholic beverages company headquartered in kolkata, west bengal, india and a subsidiary of the tata group. Tata groups growth strategiesbusiness strategycase. The acquisition of tetley made tata tea the second biggest tea company in the world with the expected combined turnover worth. It has a strong team of almost 250,000 employees working in its various companies. Tata tea ltd and tetley plc a case study help case solution. In 1989, following extensive consumer tests establishing britons preferences, tetley launched the round tea bag. Many indian firms have acquired companies abroad in the fmcg and fmcd sectors. Tata tea limited ttl, is the second largest tea company in india.
Themove turned the company into the worlds secondlargest tea marketer. Managing director sean hallahan has been tasked with growing the company s market share in australia, new zealand, and indonesia while staying true to the company s values. Dec 25, 2009 tata, a strong player at home, became a global competitor with this acquisition. May 18, 2011 tata s tetley tea brand gets new look tata global beverages is undertaking an image makeover of its flagship tea brand tetley, as part of a strategy to reposition the product and bring about uniformity across global markets. Tetley, a blended tea marketing giant since 1837, is now part of tata tea limited. A progressive digital media business company profile tata global beverages ltd reference code.
Tetley, a global brand, is famous for quality tea and having 165 years of expertise to blend tea to suit your mood. Tata tea, tetley, kanan devan, chakra gold, and gemini. In 2000, ttl had acquired tetley a major uk tea manufacturer. Through this acquisition, tata tea got access to tetleys strong worldwide distribution network and its strong brands. Discuss tata tetley merger case within the publish upload project or download reference project forums, part of the projects hub for management students mba projects and dissertations bms projects bba projects category. Tata tea to merge tata tetley business standard news.
The first major instance of inorganic growth was exemplified when the groups tata tea now tata global beverages division acquired ukbased tetley in 2000. The integration of growing tea in india and sourcing the beverage from other producing countries for blending and marketing will stop short of merging the balance sheets of the two entities. Top 10 tea companies in the world 2018 tata global beverages from a predominantly domestic indian tea farming entity to a brandfocused global organization, tata global beverages has evolved significantly over the last several years, backed by a strong experience in the beverages industry and a heritage of innovation and development. The group redefined growth when ratan tata took over as chairman of the tata group in 1991. Through this acquisition, tata tea got access to tetley s strong worldwide distribution network and its strong brands. The times of tatathe tale of tata tetley acquisition presented by roopali t 05 2. Tata tea is the biggestselling tea brand in india, tetley is the biggestselling tea brand in canada and the secondbiggestselling in united kingdom and united states. Tetley, a blended teamarketing giant since 1837, is now part of tata tea limited. In step with its stated global expansion plan,tata tea acquired good earth,a specialty tea brand in the us,for usd 32 million. Tata tea and tetley 1 free download as powerpoint presentation.
The author discusses godrejs acquisition of keyline brands, a ukbased firm and rapidol, a south africabased firm, and videocons acquisition of. In 2001, tata tea, an indian teaproduction company, took over tetley, a u. The deal to buy the worlds second largest producer of tea bags is worth. Leveraging the tetley acquisition further,in mid2003,tata tea launched tetley in pakistan. He restructured the businesses of the tata group and expanded the group globally.
The expansion took place through the acquisition of another tea giant from the uk tetley. Recently, it completed sale of its controlling stake in tea plantations in india to transform itself from a plantation company to a marketingled player. Two years later he paid 530 million for a 46 stake in vsnl, indias stateowned international telecom carrier. The year 2000 saw the tata group acquire the tetley group based in uk where the deal. Largest crossborder acquisition that marked the culmination of indian companys tata tea s strategy of pushing for aggressive growth and worldwide expansion.
846 1672 1291 1088 707 444 808 791 1592 532 76 749 1309 669 245 131 192 646 429 1340 544 1158 595 1232 945 1463 1147 262 417 93 700 1225 10 1093 528 1256 397 506 1178 514