Tata plans to buy Tetley tea

27 July 1999

Tata plans to buy Tetley tea

THE recent announcement that Indias biggest tea producer, Tata, is in talks to buy Tetley Tea of the UK reflects changes afoot in the industry, says the Financial Times.

Tata Tea says the takeover is necessary for the company to compete effectively globally with Unilever.

Indias largest tea company is also interested in acquiring Tetleys brands, technology and marketing skill.

The acquisition would reduce Tatas exposure to Indian commodity tea prices and to the vagaries of the Russian economy.

It could also improve the companys position when India dismantles its barriers to tea imports, as required by the World Trade Organisation.

• Financial Times 27/07/99 page 34