Percy T Siganporia, MD of Tata Tea, today said the company has registered a new company - Kannan Devan Hills Plantations - for transferring its plantations business of 14 tea estates at Munnar in Kerala.As per the proposal, which is awaiting shareholders' approval next week, over 12,000 workers of the 14 tea estates in the Kannan Devan hills, comprising pluckers, sub-staff and clerical employees, will hold 75% of the equity in the new company, Siganporia said.Tata Tea would hold 19% stake, and the remaining 6% would be held by a trust, he said, adding the restructuring would not affect the total sales of the company. "I do not expect an impact on our topline," he said.About 3,600 workers of the Kannan Devan estates, who had opted for a VRS, are also expected to become shareholders of the new company.The restructuring would help employees become the real owners of the tea estates, and would help them in running the new company on a profitable basis. The 14 tea estates covering an area of 57,000 acres could also be tapped for alternative sources of income by cultivating other crops such as pepper, orchids and floriculture."On tea itself, the workers could get a revenue of Rs 8-10 per kg," Siganporia said.
