Tata Consumer Products (TCPL) said its step-down subsidiaries in the USA have decided to divest their entire membership interest in Empirical Group and Southern Tea to the joint venture partner, Harris Tea Company, USA.
Empirical Group is engaged in the business of selling primarily white label tea and coffee in the foodservice channel and to contract customers. Southern Tea is a manufacturing entity acting as a supplier to Harris Tea and TCPL (Empirical, Tetley and Good Earth brands).
This move is in line with TCPL's focus on its core branded businesses in International markets. It will help further simplify and streamline the Company's operations to enhance business effectiveness and profitability. Following this transaction, Southern Tea will continue to manufacture for Tetley and Good Earth brands.
Sunil D'Souza, managing director (MD) and chief executive officer (CEO) of TCPL, said: "This divestment is another step towards consolidating and strengthening our presence in International markets and will enhance our focus on the branded tea and coffee businesses in the US market."
Shares of TCPL rose 0.83% to Rs 643.80 on BSE.
On a consolidated basis, TCPL reported a 25.3% rise in net profit to Rs 237.03 crore on 23.1% increase in net sales to Rs 3069.56 crore in Q3 FY21 over Q3 FY20.
TCPL is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The company's portfolio of products includes tea, coffee, water, salt, pulses, spices, and ready-to-cook offerings.
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