Tata Coffee is proposing to change the company's articles of association to include buyback of shares.
The special resolution will be put placed at the company's forthcoming annual general meeting for shareholders' approval.
The modifications made in the articles of association would enable the company to purchase or buy back its own shares or securities as the board may deem fit and proper in the interest of the company.
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The company will seek approval that resolutions relating to such business can be passed by means of a postal ballot.
Anil P Goel, a director of Tata Coffee, said it is an enabling resolution and there is no proposal for a buyback on the table at this juncture.
The scrip close at Rs 68 on the Bombay Stock Exchange (BSE) and at Rs 67 on the National Stock Exchange (NSE) today.
The shareholding pattern filed with the stock exchanges indicates that as on June 30, Indian promoters have 50.71 per cent, Indian public is at 19.53 per cent and institutional investors have 26.83 per cent in the company.
Meanwhile, to spruce its value-added products business, Tata Coffee has entered into an arrangement with Barista Coffee Company Ltd for promoting the sale of roasted coffee through Barista outlets.
The company picked up a 34.29 per cent stake in Barista for Rs 26 crore, during the year. Tata Coffee already has an exclusive arrangement with Barista for sourcing and blending coffee beans.
With increasing number of Barista outlets, this investment has the long-term strategy of changing the direction of Tata Coffee away from plantation to value addition route through consumer marketing of liquid products including coffee through its present range of espresso bars.
Further, Tata Coffee has also entered into an arrangement with its holding company, Tata Tea to market its domestic coffee brands.
The company is looking at further measures to increase the quality of its products. Plans are on the anvil to relaunch its domestic brands. Tata Coffee's four major value added brands are Coorg 100% Pure Coffee, Coorg Double Roast, Tata Cafe in the north and Tata Kaapi in the southern coffee segment.
Coffee vending and sale of coffee through franchise outlets are the new thrust areas in the company's coffee value chain.