Earth Rules, a step-down Australian subsidiary of Tata Consumer Products, has entered into an agreement to sell MAP Coffee business to Australia-based Buccheri Group.
Buccheri Group is engaged in coffee manufacturing. Earth Rules will receive a total consideration of AUD 1.25 million (Rs 6.74 crore) in tranches by 28 February 2021, as per terms of the asset sale and purchase agreement dated 5 December 2020. The sale is expected to be completed by 7 December 2021.The transaction is a slump sale of assets by an overseas step-down subsidiary, where the business assets of such subsidiary is being sold along with the contracts, assets and brands for a consolidated consideration to be received in cash.
Map Coffee joined the Tata Consumer Products family in 2014. Map Coffee was established back in 2002 and supplied Australian caf, restaurants and bars with a range of Italian and locally roasted coffee. It then expanded into servicing the coffee needs of business offices across Australia, and, in 2009, moved into capsule machines and capsules outside the Grocery channel, followed by entry into the Grocery channel in 2014.
Shares of Tata Consumer Products rose 2.47% to Rs 563.80 on Friday. The stock has surged 163.45% from its 52-week low of Rs 214 hit on 24 March 2020.
On a consolidated basis, Tata Consumer Products reported a 18% rise in net profit to Rs 234.33 crore on 18.5% increase in net sales to Rs 2,781.34 crore in Q2 FY21 over Q2 FY20.
Tata Consumer Products is a food and beverages (F&B) focused consumer products company. The company's portfolio of products includes tea, coffee, water, salt, pulses, spices, and ready-to-cook offerings.
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