In an attempt to strengthen presence in the Russian beverages market, Tata Tea has announced that the company, through one of its overseas subsidiaries, together with EBRD (European Bank for Reconstruction and Development), has decided to acquire 51 per cent of the Grand. Grand is a major Russian branding, packaging and distribution company in the economy segment of the coffee and tea business in Russia. It is mainly focused on regions outside the big cities and areas like the Urals, Siberia and Southern Russia.
According to Tata Tea’s latest disclosure to Bombay Stock Exchange, the company’s overseas subsidiary and EBRD will have an effective share of 33.2 per cent and 17.8 per cent in the Grand business respectively. The balance 49 per cent will remain with the founding promoters led by Dr Alexander E Borisov.
Further the company said that the acquisition is subject to the fulfilment of various conditions, including regulatory approvals, and is expected to be completed during the first half of 2009.
Tata Tea also mentioned in the disclosure that the objective of the investment by the Company is to strengthen its presence in the Russian beverages market.
— IndiaRetailing Bureau