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 tea is grappling with the decision of how to internationalise. The file will be a locked pdf file, with a do not copy watermark. Covers aspects like deal motives, synergies, post merger integration among others. 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. Examples of this trend include the acquisition of popular u. Tata tea has decided to merge its wholly owned subsidiary, tata tetley, with the company. Tata tea ltd and tetley plc a case study help case.
The company used the policy of acquisition, jointventure and sustainability as their key strategies for global growth. India has experienced a number of buyouts and leveraged buyouts since tata tea s lbo of uk heavyweight brand tetley for. The year 2000 saw the tata group acquire the tetley group based in uk where the deal. 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. Indias exports in 200102 and by establishing offices, merging and. Tata consumer products limited markets tea under the major brands tata tea, tetley and good earth teas. Tata merger with tetley group assignment research writer. The acquisition of tetley made tata tea the second biggest tea company in the world with the expected combined turnover worth rs. Then the history, motives and consequences of tata teas acquisition of tetley are investigated in case study section. Kiran a05 abhay sakharkar a10 aditi lakhe a20 industry profile. List of buyouts by indian companies target company country indian acquirer value type tetley united kingdom tata tea. The international marriage success lies in complementing each other.
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. This deal which was the biggest ever crossborder acquisition, was also the firstever. Tata, a strong player at home, became a global competitor with this acquisition. 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. View similar attachments and knowledge in strategy. The merger was also important for tata tea because its main competitor in india, hll, a. The largest tea manufacturing company in india marketing essay. Motivate the visitor to pour a cup of coffee or tea, relax and spend some time on the site. Tata tea is part of the giant tata conglomerate which has interests in steel production, transport, hotels and computer software. 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 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.
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. Tetley s manufacturing and distribution business operates in forty countries, selling over sixty branded tea bags contents. It was dubbed the acquisition of a global shark by an indian minnow. Tgbl sells tea under tetley and tata tea brands as also coffee under eight oclock brand and bottled water. Tetley is a beverage manufacturer founded in 1837 in yorkshire, england. While many deals have been hugely successful, some have. Also, the lenders had no recourse at all to tata tea in india. Our brands include tata tea, tetley, vitax, eight o clock coffee, himalayan natural mineral water, tata coffee grand and joekels. 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 and tata have already worked closely together. 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, tata tea, good earth and eight o clock are some of the prominent brands. 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. Flow of presentation introduction tetley tale of tata tea lbo structure of the deal synergies prepost merger.
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. With a combined reach of over 200 million households in india, it has an unparalleled ability to leverage the tata brand in. Tata global beverages brand portfolio kusmiteavstetley. When the merger finished in april 1973 tetley changed its company name to lyons tetley ltd. Mergers and acquisitions are one of the ways for a company to grow and expand its business. Branded teas contribute 88% of the consolidated turnover of the group, 12% comes from bulk tea, spices and investment activities 6. The liability ofacquisition was limited to tata tea s equity contribution to the spv. 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. The merger presented an array of verticalintegration. Download as ppt, pdf, txt or read online from scribd. The company is thus contemplating internationalisation. Tea remains at the core of tgb with 74% of the companys usd 1.
Tetley in 1837, two brothers, edwards and joseph tetley started to sell tea and became so famous that they set up as tea merchants. An overview of tata tea limitedtata tea was set up in 1964. Tata tea and tetley 1 free download as powerpoint presentation. The merger of tata tea tetley tata tea limited ttl, is the second largest tea company in india. Tgbl continued to focus on product innovation and introduction of premium tea segment with launch of. A short history of tata2 the tata group is almost 150 years old. Tetley tea, inventor of the teabag and maker of the traditional english cuppa, is being bought by tata tea of india. In india, tata global beverages pioneered the green tea segment with tetley and has a portfolio of delicious flavours available. Having acquired tetley tata now has a major brand presence. Tetley is one of the biggest tea brands worldwide depending on the websites.
Meanwhile, blend the remaining milk with the sugar and cornstarch. 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. It was dubbed the merger of a global shark by an indian minnow. It has a significant presence in over 35 countries. The acquisition of tetley made tata tea the second biggest tea company in the world with the expected combined.
Heat and stir, for 5 minutes or until steaming and fragrant. 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 speciality gained 1% value market share in the quarter. Tata global beverages ltdpdf a progressive digital. Incorporated as tata tea limited in 1963, tgb has been an important part of the usd. 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 group considers merging food and beverage businesses. Tata tea and tetley 1 mergers and acquisitions leveraged buyout. Challenges faced in executing leveraged buyouts in india.
Tata consumer products is a focused consumer products company uniting the food and beverage interests of the tata group under one umbrella. Having acquired tetley tata now has a major brand presence in the west as well from marketing 542 at gothenburg uni. It is the worlds secondlargest manufacturer and distributor of tea and a major producer of coffee. Tata global beverages markets tea under the major brands tata tea, tetley, good earth teas and jemca. 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. In 1856, in partnership with joseph ackland, they set up joseph tetley and co. This seems understandable because of the three major factors. 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. It is home to key brands such as tata tea, tetley, tata salt and tata sampann. However, tetley regular black tea is facing headwinds tata coffee, which includes vietnam business posted robust revenue. 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. Friends here is the complete presentation on tata tetley merger case hope it would be beneficial for u all thanks. New products tetley would give tata tea access to speciality products such as. Tetley is a huge tea brand, according to tata global beverages website.
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