Tata Tea will work with Stern Stewart & Co, a global consulting firm, for improving its EVA (economic value added).
Homi R Khusrokhan, managing director, Tata Tea, said, this is a two-year process and will help setting ground rules and that work towards improvement in EVA.
Stern Stewart & Co, originators of the EVA framework, specialises in helping client companies in the measurement and creation of shareholder wealth through the application of tools based on modern financial theory.
The EVA framework offers a consistent approach to set goals and measure performance, communicate with investors, evaluate strategies, allocate capital valuing acquisitions and determine incentive bonuses. However, the EVA improvement is one of the many ongoing initiatives at Tata Tea.
Addressing shareholders, Khusrokhan made a presentation which featured, among other initiatives, manpower rationalisation, new product development via
