Tata Tea to shut spices centre

Tata Tea, in a bid to exit non-core operations, has decided to close down its spices centre in Kochi.

The Kochi centre was set up in 1990 and consisted of a modern pepper processing facility for whole black and white pepper. The facility had a capacity of 2,500 tonne per annum.

The move was in tandem with Tata Tea's strategy to focus on its core competence "" tea.

Percy Siganporia, managing director, Tata Tea was not available for comment.

The company's vision was to achieve leadership in the tea business, not just in size, but more importantly in the eyes or customers and consumers through thoughts, ideas, behavious and achievements.

Tata Tea has mentioned in its annual report that as part this strategy, the commitment would encompass both organic growth opportunity and recognition of strategic acquisitions.

The business challenge of prioritising the growth agenda across geographies, market segments and sectors where the company does not have a presence, would determine the future of operations.

Taking into consideration the operations of Tata Tea and all its subsidiaries "" Watawala and Tetley "" the company's presence in black tea is restricted to 35 per cent of the countries where black tea is consumed.

In the green, fruits and herbal specialty market segments, the combined business presence has just established beachheads in key markets.

The company also mentioned that restructuring plantation activity to be globally competitive would a key success factor for its operations.

The growth options for plantation operations in India were poor and the plantation tea industry had become globally uncompetitive in terms of costs and vagaries of commodity price movements impacted significantly by whether conditions.