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Tata Tea to buy into Russian firm

Tata Tea to buy into Russian firm
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First Published: Fri, Mar 27 2009. 12 46 AM IST
Updated: Fri, Mar 27 2009. 12 46 AM IST
New Delhi: Tata Tea Ltd has teamed up with the European Bank for Reconstruction and Development (EBRD) to acquire a 51% stake in Russian tea and coffee packaging and distribution firm Grand.
Tata Tea will hold 33.2% of the company through an overseas arm and EBRD a 17.8% stake, according to an announcement made to the Bombay Stock Exchange. The balance 49% will remain with Grand’s founders, led by Alexander E. Borisov. Tata Tea’s spokesperson could not be reached for comment.
The acquisition is expected to be completed during the first half of this year, subject to regulatory approvals and other conditions.
Established in 1994, Grand’s market focus is on the regions outside of the big cities of Russia.
“Tata group has no investments in the beverages sector in Russia so far, but sees strong growth potential in a market where coffee is becoming increasingly popular and tea is a national beverage,” the news release added.
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First Published: Fri, Mar 27 2009. 12 46 AM IST