View similar attachments and knowledge in strategy. Indias exports in 200102 and by establishing offices, merging and. Having acquired tetley tata now has a major brand presence. The company is thus contemplating internationalisation. Flow of presentation introduction tetley tale of tata tea lbo structure of the deal synergies prepost merger. Kiran a05 abhay sakharkar a10 aditi lakhe a20 industry profile. Tetley is one of the biggest tea brands worldwide depending on the websites. Lyons wanted to raise the profile of its tea operations by purchasing the american tetley tea company from beechnut incorporated in december 1972 for 23 million pounds. Tata tea is part of the giant tata conglomerate which has interests in steel production, transport, hotels and computer software.
Tetley is a beverage manufacturer founded in 1837 in yorkshire, england. Tata global beverages brand portfolio kusmiteavstetley. The merger presented an array of verticalintegration. 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. With a combined reach of over 200 million households in india, it has an unparalleled ability to leverage the tata brand in. New markets tata tea could help tetley to launch the brand in india, to enter the premium segment, as well as in the middle east and russia. Tata global beverages ltdpdf a progressive digital. The company used the policy of acquisition, jointventure and sustainability as their key strategies for global growth. 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. Tetley speciality gained 1% value market share in the quarter. Tata consumer products is a focused consumer products company uniting the food and beverage interests of the tata group under one umbrella.
Tata tea and tetley 1 free download as powerpoint presentation. 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 is home to key brands such as tata tea, tetley, tata salt and tata sampann. The major driving force behind tata tea tetley deal, was the fact that tetley fitted. India has experienced a number of buyouts and leveraged buyouts since tata tea s lbo of uk heavyweight brand tetley for. Tetley and tata have already worked closely together. The merger of tata tea tetley tata tea limited ttl, is the second largest tea company in india. 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. Tata merger with tetley group assignment research writer. Tgbl continued to focus on product innovation and introduction of premium tea segment with launch of. In 2000, tgb acquired uk tea maker tetley for usd 450 million, at. Incorporated as tata tea limited in 1963, tgb has been an important part of the usd.
It was dubbed the acquisition of a global shark by an indian minnow. Having acquired tetley tata now has a major brand presence in the west as well from marketing 542 at gothenburg uni. Tata tea has decided to merge its wholly owned subsidiary, tata tetley, with the company. While tata tea is the second largest tea company in india after hindustan lever,it owns the single largest tea brand in the country, tata tea premium. Tetley s manufacturing and distribution business operates in forty countries, selling over sixty branded tea bags contents. Download as ppt, pdf, txt or read online from scribd. When the merger finished in april 1973 tetley changed its company name to lyons tetley ltd. Heat and stir, for 5 minutes or until steaming and fragrant. The largest tea manufacturing company in india marketing essay. Mergers and acquisitions are one of the ways for a company to grow and expand its business. Meanwhile, blend the remaining milk with the sugar and cornstarch. The international marriage success lies in complementing each other. The liability ofacquisition was limited to tata tea s equity contribution to the spv. The file will be a locked pdf file, with a do not copy watermark.
Tata group considers merging food and beverage businesses. Tgbl sells tea under tetley and tata tea brands as also coffee under eight oclock brand and bottled water. The acquisition of tetley made tata tea the second biggest tea company in the world with the expected combined turnover worth rs. Tata tea to merge tata tetley business standard news. 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.
Tetley tea, inventor of the teabag and maker of the traditional english cuppa, is being bought by tata tea of india. Tata global beverages markets tea under the major brands tata tea, tetley, good earth teas and jemca. Motivate the visitor to pour a cup of coffee or tea, relax and spend some time on the site. In 2001, tata tea, an indian tea production company, took over tetley, a u. List of buyouts by indian companies target company country indian acquirer value type tetley united kingdom tata tea. The two firms set up the tata tetley joint venture in cochin, india, in 1992, to produce tea bags for the eastern european and middle eastern markets. In 1856, in partnership with joseph ackland, they set up joseph tetley and co.
Also, the lenders had no recourse at all to tata tea in india. The merger was also important for tata tea because its main competitor in india, hll, a. Our brands include tata tea, tetley, vitax, eight o clock coffee, himalayan natural mineral water, tata coffee grand and joekels. However, tetley regular black tea is facing headwinds tata coffee, which includes vietnam business posted robust revenue. Friends here is the complete presentation on tata tetley merger case hope it would be beneficial for u all thanks. Covers aspects like deal motives, synergies, post merger integration among others. In 2001, after tata tea took over the giant tetley in a leveraged buyout, it was presented with problems. Challenges faced in executing leveraged buyouts in india.
This seems understandable because of the three major factors. Tata consumer products limited markets tea under the major brands tata tea, tetley and good earth teas. Tata tea ltd and tetley plc a case study help case. In the beverages business, tata consumer products is the second largest player in branded tea in the world with over 330 million servings everyday across the world. Overseas mergers and acquisitions by indian enterprises munich. Branded teas contribute 88% of the consolidated turnover of the group, 12% comes from bulk tea, spices and investment activities 6. An overview of tata tea limitedtata tea was set up in 1964. If your order is placed outside our working hours or on a holiday, the case study will be emailed to you on the next working day. Then the history, motives and consequences of tata teas acquisition of tetley are investigated in case study section. Tata, a strong player at home, became a global competitor with this acquisition. It is the worlds secondlargest manufacturer and distributor of tea and a major producer of coffee.
Tata tea has also launched a new variant of green tea called acti green that aims to. A short history of tata2 the tata group is almost 150 years old. Tata tea also has 100% export oriented unit manufacturing instant tea in the state of kerela, which is the largest such facility outside the united states. It has a significant presence in over 35 countries. Tata teas leveraged buyout of tetley leveraged buyout. Examples of this trend include the acquisition of popular u. This deal which was the biggest ever crossborder acquisition, was also the firstever.
The company has five major brands in the indian market catering to all major consumer segments tata tea, after the acquisition of tetley, has bacome the worlds second largest branded tea company. Combine 1 12 cups 375 ml milk and tea bags in a saucepan and set over medium heat. In india, tata global beverages pioneered the green tea segment with tetley and has a portfolio of delicious flavours available. While many deals have been hugely successful, some have. 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 group, indias biggest conglomerate, is evaluating a proposal to integrate its food and beverage businesses into a single company, people with knowledge of the matter said.
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, and jemca is the biggestselling tea. Tata tea is grappling with the decision of how to internationalise. Tata tea and tetley 1 mergers and acquisitions leveraged buyout. Since 2000, tetley is a wholly owned subsidiary of tata global beverages formerly tata tea, headquartered in kolkata, making it the secondlargest manufacturer of teas in the world, after unilever.
Tetley in 1837, two brothers, edwards and joseph tetley started to sell tea and became so famous that they set up as tea merchants. The year 2000 saw the tata group acquire the tetley group based in uk where the deal. Percy siganporia, managing director, tata tea said, the merger would compensate for the loss in tata tea s topline after the recent divestment of part of its portfolio of tea gardens. 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. Download as pptx, pdf, txt or read online from scribd. It was dubbed the merger of a global shark by an indian minnow. The acquisition of tetley made tata tea the second biggest tea company in the world with the expected combined.