Tata Coffee Ltd and Tata Consumer products Ltd (TCPL), two companies that are a part of Tata group¡¯s large and diverse portfolio, will merge within the next 12-14 months.?The companies are in the early stages of filing the regulatory process, as per a PTI report.
"It would take about 12 to 14 months. So that's what the timeline is," Tata Coffee Ltd¡¯s ED & CFO K Venkataramanan reportedly told analysts at an investors' meeting.
Tata consumer products, which houses key brands like Tata Tea, Tetley and Tata Salt announced the merger of all businesses of Tata Coffee with itself or its subsidiaries as part of a reorganization plan in line with its strategic priority of unlocking synergies and efficiencies.
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Under the scheme, shareholders of Tata Coffee will receive an aggregate of 3 equity shares of TCPL for every 10 equity shares held by them.
As per its website, Tata Coffee claims to be one of the largest integrated Coffee cultivation and processing companies in the world and the largest corporate producer of Indian Origin Pepper.?
Speaking about the demand scenario under the ongoing geopolitical crisis, the management said that the demand remains firm, even for Russia and Europe, as per the?PTI report.
"Tata Coffee has got a healthy order book and customers are asking for continuing the shipments," Venkataramanan said.
"Coffee being something very common and widely drunk beverage, that impact is not going to be felt, that's our view," the company said, as per PTI.
However, the company acknowledged inflationary pressure and logistics concerns for shipments in some markets.?Officials also reportedly informed the investors that the company hopes to double the pepper business in the next three to four years.
This recent announcement comes a few days after Tata-owned Air India had proposed to buy low-cost airline AirAsia India.?
For the uninitiated, Tata Group welcomed back Air India back to its kitty about four months ago in January 2022.
And last week, Tata-owned Air India proposed to buy the entire equity share capital of AirAsia India. Another Tata group company, Tata Sons already has an 83.67% stake in AirAsia India. And with this proposed acquisition, Tata Sons¡¯ Air India wishes to merge into a single airline, according to an application submitted to India's competition commission.
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