Tetley, a blended tea marketing giant since 1837, is now part of tata tea limited. It was dubbed the acquisition of a global shark by an indian minnow. Challenges faced in executing leveraged buyouts in india. Tata tetley group 1 free download as powerpoint presentation. Tata steel made the its corus acquisition only in 2007, seven years after tata tea s acquisition of tetley, which was the first major international acquisition for the tata group as a whole. India has experienced a number of buyouts and leveraged buyouts since tata tea s lbo of uk heavyweight brand tetley for. The company sells tea under brands including tetley and tata tea, coffee under eight oclock and bottled water under himalayan. In 2000, ttl had acquired tetley a major uk tea manufacturer. Challenges faced in executing leveraged buyouts in india the. Covers aspects like deal motives, synergies, postmerger integration among others. Indeed the tetley acquisition was almost the clarion call.
Tata teas acquisition of tetley derive advantage of an international br and. 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. The total cost of tata tea s acquisition of the ukbased tetley is now known to be. Friends here is the complete presentation on tata tetley merger case hope it would be beneficial for u all thanks. Recently, it completed sale of its controlling stake in tea plantations in india to transform itself from a plantation company to a marketingled player. Tata global beverages ltdpdf a progressive digital media. The b case highlights some of the integration steps undertaken by the newly appointed integration team. Tetley was the first company to sell tea in tea bags in the united kingdom in 1953. T siganporia is to takeover as the tata tea managing director of the company.
Sbux today announced a joint venture between the iconic international coffee brand and the 2nd largest branded tea company in the world. Dec 25, 2009 tata, a strong player at home, became a global competitor with this acquisition. Kiran a05 abhay sakharkar a10 aditi lakhe a20 industry profile. This deal which was the biggest ever crossborder acquisition, was also the firstever successful leveraged.
It has a significant presence in over 35 countries. Tata consumer products history tata consumer products. Tata group considers merging food and beverage businesses. In the conclusions, the paper explores the implications of the tata experience for the. In many ways, the audacious acquisition of the summer of 2000 has defined the growth of tatas and of india inc.
Introduction in the summer of 2000, indian corporate fraternity witnessed path breaking achievement new chapter in indian corporate history tata tea acquired the uk heavyweight brand tetley for. The year 2000 saw the tata group acquire the tetley group based in uk where the deal. Tgbl continued to focus on product innovation and introduction of premium tea segment with launch of multiple new variantsflavours during 201819. We would like to show you a description here but the site wont allow us. Tetley s manufacturing and distribution business operates in forty countries, selling over sixty branded tea bags. Tetley tea, inventor of the teabag and maker of the traditional english cuppa, is being bought by tata tea of india. The mergerbrought with it a greater market penetration. 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. In the year 2000, tata tea acquired the iconic tetley brand in a 450 m. Tata tea limited ttl, is the second largest tea company in india. But when we put it in the context of it contemplating to acquire tetley tea, we need to look at the fact that tetley tea was even bigger. Tetley is a lowdebt company and is capable of higher leveraging of its balance. It is unique that ratan tata, who is the architect of the tetley acquisition, has invested in teabox, says dugar. Analysts had expressed doubts as to whether the deal.
Tgb is the second largest tea company in the world today. Tata global beverages limited is an indian multinational nonalcoholic beverages company headquartered in kolkata, west bengal, india and a subsidiary of the tata group. In 1989, following extensive consumer tests establishing britons preferences, tetley launched the round tea bag. By february 2002, it was apparent that by all metrics, the acquisition of tetley was not going well.
Mumbai, india, january 30, 2012 tata global beverages limited and starbucks coffee company nasdaq. Tata tea to merge tata tetley business standard news. Tata consumer products limited, formally tata global beverages limited is an indian multinational nonalcoholic beverages company headquartered in mumbai, maharashtra, india and a subsidiary of the tata group. In 2002, tata tea launched this international brand tetley in indian market. This seems understandable because of the three major factors. Baixe no formato docx, pdf, txt ou leia online no scribd. In 2001, after tata tea took over the giant tetley in a leveraged buyout, it was presented with problems. Beginning with tata tea s acquisition of tetley in 2000, tata companies made several significant overseas acquisitions including corus by tata steel, jaguar and land rover by tata motors and brunner mond by tata chemicals all in the uk. In the domestic market, tgb is building its green tea portfolio under the tetley brand. Analysts had expressed doubts as to whether the deal would. The failure of tetley to make the required cashflow targets and the high debt burden required tata tea to make some changes. This was followed by a joint venture with aci in bangladesh in the same year,to introduce tetley in the country. View similar attachments and knowledge in strategy. Tata tea finally tasted victory on march 10, 2000 when it bought tetley.
In step with its stated global expansion plan, tata tea acquired good earth,a specialty tea. In terms of revenues, tata tea was half the size of tetley tea. Beginning with tata teas acquisition of tetley in 2000, tata companies made several significant overseas acquisitions including corus by tata steel, jaguar and land rover by tata motors and brunner mond by tata chemicals all in the uk. The company has a 100% exportoriented unit kosher and haccp certified manufacturing instant tea in munnar, kerala, which is the largest such facility outside united states. Tata consumer products company history plantations. Tata teas acquisition of tetley was expected to provide the company access to. The first big acquisition was that of tetley tea, one of britains leading tea brands, by tata tea now tata beverages in 2000. Tetley, a wholly owned subsidiary of tata global beverages formerly tata tea, is the worlds second largest manufacturer and distributor of tea.
Tata tea s strategy of pushing for aggressive growth and worldwide expansion. Tata tea case study business finance general scribd. Tata, a strong player at home, became a global competitor with this acquisition. It is the largest tea company in the united kingdom and canada, and the second largest in the united states by volume. Branded teas contribute 88% of the consolidated turnover of the group, with the remaining 12% coming from bulk tea, spices and investment activities. Such an acquisition by an indian company wasnt even close to a regular norm at that time. Our message to you all from tetley, is that in these tough times we will continue to do our best to look after our staffs health and welfare. It is the worlds secondlargest manufacturer and distributor of tea and a major producer of coffee tata consumer products limited markets tea under the major brands tata tea, tetley. Leveraging the tetley acquisition further,in mid2003, tata tea launched tetley in pakistan. The major flavor offerings are the famous tata tea gold launched in 2003, tata tetley introduced in 2004 with the mixture of indian herbs, lemon, ginger and earl grey. Tea remains at the core of tgb with 74% of the companys usd 1. As khusrokhan sat back in the plane contemplating the events that led to the impending meeting, he was deeply. 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. Tata tea has decided to merge its wholly owned subsidiary, tata tetley, with the company.
In 2000, tata tea limited acquired the ukbased tetley group. Owned by indias tata group, tetley s manufacturing and distribution business is spread across 40 countries and sells over 60 branded tea. Daewoo commercial vehicles by tata motors in south korea. Tgbl, erstwhile tata tea limited, a tata group company is the second largest branded tea player in the world with growing. The major driving force behind tata tea tetley deal, was the fact that tetley fitted. The acquisition of tetley made tata tea the second biggest tea company in the world with the expected combined turnover worth rs. Bass buys carlsbergtetley for pounds 200m the independent. Till date, the largest acquisition for the company has been the european tea brand tetley in. Challenges and synergies in tata tetley deal term paper. In march tata tea had announced the acquisition of tetley for a consideration of. Tata tea products are produced in india itself with local consumer habits and preferences in mind. This deal which was the biggest ever crossborder acquisition, was also the firstever. The expansion took place through the acquisition of another tea giant from the uk tetley. It was february 2001, a year since tata tea acquired tetley in a leveraged buyout.
Tetley is a beverage manufacturer founded in 1837 in yorkshire, england. 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. India has experienced a number of buyouts and leveraged buyouts since tata teas lbo of uk heavyweight brand tetley for. Tata tea to acquire vitax, flosana trademarks in poland. Tata global beverages was the first large company to offer the masala flavor to. Tata tea on thursday said it will acquire the vitax and flosana trademarks in poland, from premium foods for an undisclosed amount. Apple and beats electronics from ashridge business school duration. Tata teas strategies for that global cup of tea the. In 1952, in an early example of cross promotion, petula clarks single anytime is tea time now was used to advertise tetley on radio luxembourg. Currently, tgb has green tea brands in its portfolio, namely tetley green tea and tata tea acti green. List of buyouts by indian companies target company country indian acquirer value type tetley united kingdom tata tea. Tetley, a global brand, is famous for quality tea and having 165 years of expertise to blend tea to suit your mood.
The times of tatathe tale of tata tetley acquisition presented by roopali t 05 2. Pdf overseas mergers and acquisitions by indian enterprises. The deal to buy the worlds second largest producer of tea bags is worth. Nov 10, 2008 post acquisition of tetley, tata tea restructured its business to emerge as a brandcentric beverage company with operations in all major global markets. Major overseas acquisitions by tata group business.
News world bass buys carlsberg tetley for pounds 200m attention turns to oft approval as bass finally announces deal that will make it britains largest brewer with onethird of the market. It was february 2001, a year since tata tea acquired. 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. This translated into an acquisition cost of approximately rs 2,750 crore.
Tea gardens to tetley, a brief history of indias tata tea. Tata tea, tetley, kanan devan, chakra gold, and gemini. The acquisition of tetley made tata tea the second biggest tea company in the world with the expected combined. Friends here is the complete presentation on tata tetley merger case hope it would be. In uk, tgb launched a range of tetley super green teas in various flavors to tap growing green tea market.
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