Tata Consumer Products Limited's (TCPL) step-down subsidiaries in the USA have decided to divest their entire membership interest in Empirical Group and Southern Tea.
The company informed that it is continually evaluating its businesses across geographies in line with its strategic goals. “As a result of this process, the company’s step-down subsidiaries in the USA have decided to divest their entire membership interest in Empirical Group LLC and Southern Tea LLC to the JV partner Harris Tea Company LLC, USA (Harris Tea),” the company said in a note.
The company informed the exchange that other than the strategic advantage to TCPL from exiting these Joint ventures, there are no other benefits to the promoter/promoter group of the Company from this transaction.
Sunil D’Souza, MD and CEO, Tata Consumer Products said, “This divestment is another step towards consolidating and strengthening our presence in international markets and will enhance our focus on the branded tea and coffee businesses in the US market.”
TCPL’s focus on its core branded businesses in international markets will be their focus. Following this transaction, Southern Tea will continue to manufacture for Tetley and Good Earth brands.
TCPL further said in its filing this will further simplify and streamline the company’s operations to enhance business effectiveness and profitability.
Empirical is engaged in the business of selling primarily white label tea and coffee in the foodservice channel and to contract customers. Southern Tea is a manufacturing entity acting as a supplier to Harris Tea and TCPL (Empirical, Tetley and Good Earth brands).
TCPL’s portfolio of products includes tea, coffee, water, salt, pulses, spices, ready-to-cook offerings, breakfast cereals, snacks and mini-meals. Tata Consumer Products is the second largest branded tea company in the world. TCPL is known for brands like Tata Tea, Tetley, Eight O’Clock Coffee, Tata Coffee Grand, Himalayan Natural Mineral and others.