Tata Consumer Products on Thursday said that its 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).
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.”
In its regulatory filing, Tata Consumer highlighted that 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.
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).
At around 2.14 pm, Tata Consumer was trading at Rs647.55 per piece up 1.4% on Sensex.
The stock has hit a new 52-week high of Rs653.20 per piece in early deals on Sensex.