Tata Global Beverages Ltd. (TGBL) announced its decision to acquire the branded tea business of city-based Dhunseri Tea & Industries Ltd. for ₹101 crore subject to due diligence and necessary approvals.
Dhunseri currently owns the Lalghoda and Kalaghoda brands which are among Rajasthan’s local brands. The move is in line with TGBL’s ambition to grow its branded tea business in India, the company said in a statement.
Revenue growth
TGBL also announced its results which showed a 5% revenue growth in the fourth quarter. However, consolidated net profit for the quarter (₹93.8 crore against ₹121.3 crore) and the year were lower at ₹473.8 crore against ₹567.3 crore due to higher exceptional items, higher share of losses from JVs and associates and higher one-time tax credits in the previous year, according to the statement.
Its India, tea business grew 7% by value for the year. U.K. business delivered a 4% revenue growth. Joint venture Tata Starbucks clocked 30% revenue growth with 16 stores across India. NourishCo recorded 10 topline growth
Ajoy Misra, managing director and CEO, TGBL said that profit had been impacted due to one-off items, commodity costs and increased brand investment. “We are strengthening our portfolio beyond black tea,” he said.