Girnar Tea eyes US partners

Indian tea major, Girnar Tea is scouting for joint venture (JV) partners in the US to increase its presence in the global market. The company is currently in discussion with few major players in the US tea market.

The sources close to the development said that by floating the JV, Girnar would initially focus on marketing its products there and later on, under the same JV, might explore opportunities for starting production in the US.

"Joint venture is likely to be finalised by the end of the year and the initial investment in the joint venture in the US by Girnar is learnt to be substantial", the sources added. However, the identity of the JV partner is kept confidential.

"We have studied the market potential of the US market, which is more lenient to coffee.

There, the tea consumption percentage is much less compared to coffee. At the same time, the existing tea market cannot be ignored," said a senior executive from the company.

Girnar also plans to float an initial public offer as part of a major expansion plan in the domestic front. Girnar director Vidyut Shah, confirmed that expansion plans were in the discussion stages and that they were waiting for a favourable time for the new ventures.

Meanwhile, the Girnar group is planning to open its retail outlets in Tamil Nadu. Commenting on the expansion plan in the retail segment, Girnar group director Harendra Shah said that promotional work had already started in Tamil Nadu.