Tata Global Beverages today said its overseas arm has formed a step down subsidiary in Russia, Coffee Trade LLC, which will take over part of the existing business as part of its restructuring exercise in the country.
Last month, the company said it would sell its business in Russia for an undisclosed amount to a local firm as part of its restructuring exercise.
"In order to facilitate restructuring, the company's overseas subsidiary has formed a step down subsidiary in Russia, Coffee Trade LLC, which will take over part of the existing business," Tata Global Beverages Ltd (TGBL) said in a BSE filing.
In August, TGBL stated that it had entered into an agreement to transfer ownership and operational responsibility of its Russian business unit to Skodnya Grand.
Besides, it also agreed to a 5-year renewable licence agreement for its Russian brands to Tea Trade LLC, after completion of the transaction.
The new owner will take over all the existing assets and operating liabilities, including employees, and supplier contracts, besides continuing "to manufacture and sell our existing brands and products", TGBL had said.
The company said its Russian business had a sales turnover of Rs 226 crore in 2016-17 and a loss after tax of Rs 29 crore.
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