Tata Global Beverages (TGB), formerly Tata Tea, on Friday reported a 20 per cent fall in its consolidated profit after tax (PAT) for the quarter ended December 31 at Rs 79.8 crore, against Rs 99.9 crore in the previous corresponding period. Net sales increased by 4 per cent to Rs 1,602.4 crore from Rs 1,540 crore. Analysts attributed the decline in net profit to high raw material costs.
Meanwhile, TGB signed a memorandum of understanding with Kerala Ayurveda Ltd to explore the formation of a joint venture to develop products, based on proven ayurvedic recipes, and market them globally.
TGB shares on Friday closed 5.3 per cent down at Rs 100 on the Bombay Stock Exchange.
“Definitive agreements are expected to be finalised over the next few months. The transaction will be subject to corporate and statutory approvals as may be required,” the company said in a statement. “The proposed joint venture is not intended to conflict with any existing arrangements of either party.”
In 2010, the TGB board had approved the formation of an equal joint venture with PepsiCo to sell products in the area of non-carbonated ready-to-drink beverages on the health and wellness platform.
