Tata Consumer Products divests stake in Empirical Group and Southern Tea

Tata Consumer Products Limited (TCPL) continually evaluates its businesses across geographies in line with its strategic goals. As a result of this process, the company's step-down subsidiaries in the USA have decided to divest their entire membership interest in Empirical Group LLC and Southern Tea LLC to the JV partner Harris Tea Company LLC, USA (Harris Tea).

Empirical 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, MD & CEO, Tata Consumer Products 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 Tata Consumer Products Limited was last trading in BSE at Rs.638.5 as compared to the previous close of Rs. 629.5. The total number of shares traded during the day was 345440 in over 7578 trades.

The stock hit an intraday high of Rs. 645.6 and intraday low of 630. The net turnover during the day was Rs. 220377886.

Source : Equity Bulls

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