Tata tea to merge tata tetley business standard news. Tetley is an english beverage manufacturer, and the worlds second largest manufacturer and distributor of tea. 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. Tata global beverages ltdpdf a progressive digital. Tata tea is grappling with the decision of how to internationalise. The expansion took place through the acquisition of another tea giant from the uk tetley. Tata tea to acquire vitax, flosana trademarks in poland. Tata teas subsidiary, the tetley group, has signed a definitive. Tata consumer products limited, formerly tata global beverages limited, is an indian multinational nonalcoholic beverages company headquartered in mumbai, maharashtra, india and a subsidiary of the tata group.
Tata tetley deal the case attempts to give students an. Tetleys manufacturing and distribution business is spread across 40 countries and sells over 60 branded tea bags. The acquisition of tetley by tata is similar to the story of the epic holy bible, relating to. For starters, the tatas have shut down tetleys office in shelton, connecticut. The companys businesses were in west asia and poland. Tata, a strong player at home, became a global competitor with this acquisition. Strategy consulting sun pharmaceuticals acquisition of ranbaxy submitted by gopinath.
The acquisition of tetley made tata tea the second biggest tea company in the world with the expected combined. Tata tea tata tea was a part of the tata group of companies one of the largest and most highly regarded familyowned conglomerates in india. We have a stable of innovative regional and global beverage brands, including. The firm said tetley will have single new logo with a tagline free your mind. 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. Tetley, a global brand, is famous for quality tea and having 165 years of expertise to blend tea to suit your mood. Thus, tatas tea could better restructure management temporarily from acquisition with supplemented tetleys tea to be leveraged buyouts due to managerial mistakes. The acquisition funded by the tetley group pushed the tetley brand to the eastern european markets. The deal to buy the worlds second largest producer of tea bags is worth. Ratan tata, architect of tetley acquisition, invests in specialty tea firm teabox business sulekha nair jan 28, 2016 08. Tata tea and tetley 1 free download as powerpoint presentation.
Motivate the visitor to pour a cup of coffee or tea, relax and spend some time on the site. An iconic brand, tetley is considered to be the inventor of teabags at the time of acquisition, tetley was the second largest tea company in the world in india, tata and tetley tea entered into a joint venture to produce tea bags in the year 1992. Tata is one the uks largest investors and employers in manufacturing with tataowned companies also making a significant contribution to uk exports. Tata tea and tetley 1 mergers and acquisitions leveraged buyout. Tata tea have shut down tetleys office in shelton tata tea has kicked off a major restructuring exercise of its us operations to scale down costs and grow revenues in a challenging environment. Internationally, the company sells bulk tea that is blended and sold by branded tea marketers. Other tata companies in the uk include tetley tea acquired 2000, tata steel formerly corus, acquired 2007 and jaguar land rover acquired 2008, as. Tatas tetley tea brand gets new look the economic times. However, tetley regular black tea is facing headwinds tata coffee, which includes vietnam business posted robust revenue. Apple and beats electronics from ashridge business school duration. While tata tea is the largest tea brand in india, tetley is the largest tea company in the united kingdom and canada and the second largest in the. Tetley is a beverage manufacturer founded in 1837 in yorkshire, england.
Tata tetley group 1 free download as powerpoint presentation. At that time it was the biggest foreign acquisition by an indian company. Tetley speciality gained 1% value market share in the quarter. The major driving force behind tata tea tetley deal, was the fact that tetley fitted. Which is tata tea management emphasized on product quality improvement in the long term by focusing on valueadded, branded tea, and sales presence in advanced market rather.
This seems understandable because of the three major factors. In february of 2000, tata tea announced the acquisition of tetley from the. Tata tea, after the acquisition of tetley, has bacome the worlds second largest branded tea company. In step with its stated global expansion plan,tata tea acquired good earth,a specialty tea brand in the us,for usd 32 million. Tetleys manufacturing and distribution business operates in forty countries, selling over sixty branded tea bags. This was followed by a joint venture with aci in bangladesh in the same year,to introduce tetley in the country. Ratan tata, architect of tetley acquisition, invests in. Tata tea on thursday said it will acquire the vitax and flosana trademarks in poland, from premium foods for an undisclosed amount. Friends here is the complete presentation on tata tetley merger case hope it would be beneficial for u all thanks. Tata tea finally tasted victory on march 10, 2000 when it bought tetley. 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 limited, also known as tatatetley, is the worlds second largest manufacturer and distributor of tea.
Tata tea, one of the important group companies of tata group, is the largest tea manufacturing company in india by volume and currently holds second position as company representing tea operations in global market. It was dubbed the acquisition of a global shark by an indian minnow. 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. The merger of tata tea tetley the size of the deal was big, and was the first ever leveraged buyout lbo by any indian company tata tea allowing to minimize its cash outlay in making the deal.
In 2002, tata tea launched this international brand tetley in indian market. Kiran a05 abhay sakharkar a10 aditi lakhe a20 industry profile. 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. Major overseas acquisitions by tata group business. The company used the policy of acquisition, jointventure and sustainability as their key strategies for global growth. Tata tea acquires stake in russian beverages maker grand. Leveraging the tetley acquisition further,in mid2003,tata tea launched tetley in pakistan. Tetley tea, inventor of the teabag and maker of the traditional english cuppa, is being bought by tata tea of india. It is the largest tea company in the united kingdom and canada and the second largest in the united states by volume. In 2001, after tata tea took over the giant tetley in a leveraged buyout, it was presented with problems.
Managing the tetley acquisition introduction tata tea limited. Tata tea have shut down tetleys office in shelton the. Tata tea ltd and tetley plc a case study help case. Tata tetley deal the case attempts to give students an understanding of the from accounts 2332 at amity university. 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. The year 2000 saw the tata group acquire the tetley group based in uk where the deal. The largest tea manufacturing company in india marketing essay. Krishna kumar knew that he had to make a decision soon. These are cookies that we use to help make the site work in the way that we want you to experience it. Download as ppt, pdf, txt or read online from scribd. Tata global beverages tgb, a leading purveyor of tea, coffee and water with brands like tetley tea and eight oclock coffee, had a simple goal for its web presence. The merger presented an array of verticalintegration. Tetley established by joseph and edward tetley in 1837 in yorkshire, england. The times of tatathe tale of tata tetley acquisition presented by roopali t 05 2.
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