Tata Tea to expand in Russia and US

Tata Tea Ltd, the second largest branded tea company in the world, will form a 50:50 joint venture company in Russia by the end of this fiscal. In addition, the company is also looking at the beverage market in the US, its vice-chairman R.K. Krishna Kumar said on Friday.
Speaking at the company’s 44th annual general meeting in Kolkata, Mr Kumar said, "We are planning to set up a JV company in Russia in which we will have 50 per cent stake." "The rest of the shares will be owned by more than one company." Mr Kumar added. Tata Tea is in discusssion with a few companies for setting up the joint venture.
"The proposed JV will look at opportunities in both tea and coffee. The company will have a manufacturing and packaging facility in Russia and will also export the products to neighbouring countries," he said. However, Mr Kumar refused to specify the size of the potential investment.
Tata Tea also entered the Chinese market and recently acquired 70 per cent stake in a joint venture in China for tea. The company is also seeking opportunities in Japan and South America. "The most exciting market is the US. We are focusing on new varieties and we are also looking at the beverage market in the US," he added.
Tata Tea, which owns the Tetley tea brand, is keen to increase its portfolio of non-tea beverages. When asked if Tata Tea was evaluating Cadbury Schweppes Plc’s North American beverages unit and if it could also make an offer for the US based AriZona Beverages, Mr Kumar declined to comment.
Earlier, addressing the AGM, Tata Tea chairman Ratan Tata said that the company was planning to build an international vitaminise drink business of global standards.