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Tata Tea forms JV with Zhejiang Tea

BS Reporter  |  Mumbai 

Tata Tea, one of the biggest branded tea players in India, (ZTIE) company of People's Republic of China.
The agreement involves setting up a joint venture company at the Economic Development Zone of Anji County, Zhejiang, for the manufacture and marketing of green tea polyphenols, other green tea extracts, cold and hot water soluble instant tea, liquid tea concentrates and other value-added tea beverage products.
will own 70 per cent of the registered capital of the joint venture at an estimated project cost of Rs 70 crore and will be funded by a mix of equity capital and borrowings.
At the signing of the agreement, Percy T Siganporia, managing director, Tata Tea, said, "This project is of great strategic importance for the Tata group in reaching out to the Chinese and Far East markets.
"I wish to take this opportunity to thank the senior government officials and the management of Zhejiang Tea Import & Export for their cooperation."
Explaining the need to strengthen its presence in the tea extracts market, the company said that it was strategically important for the company to expand its tea extract business and to have a presence in the world tea extract market, hence the diversification into green tea.
Green tea extracts are increasingly gaining popularity. In India, has been involved in the tea extract business for close to 40 years. The tea extract is manufactured at the company's factory in South India, exclusively for the export markets. The company said that its black tea extracts have a significant market presence in the west and are used in many beverage brands.
ZTIE is the largest green tea exporter of China and has established wide marketing network in China, Japan, Pakistan, Morocco and other African countries.
The company's main shareholder is state-owned Xinghe group (54 per cent), and the rest owned by the employees.
The $450 million company has experience in exporting value added branded green teas and tea machinery.

First Published: Wed, May 09 2007. 00:00 IST