Tata Tea to raise funds for growth plans

The Tata Tea board will meet on September 14 to consider raising additional funds for the company's growth plans.

When contacted, vice chairman R K Krishna Kumar refused to comment on the issue and said it was price-sensitive.

Apart from the high-profile Glaceau investment, Tata Tea was also in the
process of finalising a technology-based joint venture in China.

The 50:50 joint venture is aimed at producing and marketing polyphenols and green tea extracts, which would be the next growth phase for the company.

Krishna Kumar said, the deal for the Chinese joint venture would be
finalised over the next two weeks.

As far as the funding for the investment in Glaceau is concerned, it would
be by way of injection of new equity into Tata Tea GB through Tata Tea ($192 million) and Tata Sons ($58 million).

The balance amount would be debt financed by Tata Tea GB.