Tatas to transfer estates to Coffee

Tata Tea Ltd will soon transfer six of its plantations in south India to its subsidiary Tata Coffee Ltd.

Tata Tea managing director Percy Siganporia said, "We have received a favourable bid from Tata Coffee. The deal will be to the tune of Rs 50-55 crore subject to necessary approvals from authorities concerned. It should be closed in a few months time."

Out of the six plantations, one is in Kerala while the remaining are in Tamil Nadu.

Tata Tea had earlier transferred 16 of its estates in south India to Kanan Devan Hills Plantations Company Private Ltd, which is principally owned by its employees.

Consequently, Tata Tea's results for the quarter ended June 2005 includes exceptional income amounting to Rs 10.72 crore, over and above operational income.

Siganporia also said as of July 1, a 17th plantation at Devikulam in south India, which was thus far under litigation, has also been transferred to Kanan Devan Hills Plantations Company. Tata Tea holds 19 per cent stake in Kanan Devan Hills Plantations company.

After the further transfer of six plantations to Tata Coffee, Tata Tea will still be left with two more plantations in South India.

"We are charting out a suitable exit plan for these two as well," Siganporia said.