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Tata Coffee

Tata Coffee Ltd formerly known as Consolidated Coffee Limited (CCL) is engaged in the cultivation of coffee, pepper, oranges, paddy, and other plantations. A subsidiary of Tata Tea, the company owns estates in Karnataka's Coorg. Tata Tea acquired a majority stake in CCL in 1990. The legacy of the company goes back to 1922 when M/s Coorg Co. Ltd., London and M/s Pollibetta Coffee Estates Co Ltd, London — both managed by M/s Matheson & Co came together to form Consolidated Coffee Limited. CCL diversified its interest into tea following the acquisition of Glenlorna Tea Estate at Kudige during 1983-84.

Business operations

Following the acquisition by Tata Tea, CCL actively engaged in the packaged coffee business. It launched Coorg Coffee in Karnataka and other South Indian states in 1993. The company also introduced instant coffee bags for the north-Indian market. It was able to penetrate new markets thanks to Tata Tea's robust distribution system. The company focused on expansion and amalgamated Asian Coffee (ACL), Coffee Lands (CLL), Charagni (CL) and Veerarajendra Estates (VEL). CCL was eventually renamed to Tata Coffee in 2000.

Tata Coffee acquired High Hill Company India Pvt Ltd, which owned a 3600 MT Instant Coffee facility at Jeyamangalam in the Theni district of Tamil Nadu. The deal was completed in 2005. The company teamed up with E&E Verfahrenstechnik GmbH Germany to supply installation and commissioning of a state-of-the-art freeze-drying plant capable of producing 2000 MT of freeze-dyed coffee. This facility became operational at Tamil Nadu's Theni in 2007.

The company then entered into a joint venture arrangement with Beeyu Overseas Ltd and acquired a 51% equity stake in the new entity named Alliance Coffee Limited.

Tata Coffee signed a definitive agreement to acquire Eight 0' Clock Coffee Company USA from Gryphon Investors.

In 2013, Tata Global Beverages Ltd signed a joint venture agreement with Starbucks Inc. Following the deal, Tata Coffee commissioned a state-of-the-art coffee roasting facility at Kushalnagar in Karnataka. Alliance Coffee Ltd was eventually amalgamated into Tata Coffee with effect from April 1, 2013.

In 2016, the company approved setting up of a freeze-dried instant coffee facility in Vietnam of 5000 MT capacity per annum, through its subsidiary Tata Coffee Vietnam Company

In 2020, Tata Coffee launched a limited edition 1868 blend comprising the best of washed Arabicas Tata Coffee. Sonnets by Tata Coffee a range of Edition Coffee produced from high-quality Arabica coffee beans was introduced in the market in February 2021, with Tata Consumer Products Limited looking after distribution and marketing of the product.

In 2022, the board of directors of the company approved a composite scheme of arrangement between Tata Consumer Products Limited (TCPL), Tata Coffee, TCPL Beverages and Foods Limited (TBFL) and their respective shareholders and creditors for demerger of the plantation business of the company into TBFL (subsidiary). It also approved the amalgamation of the company with TCPL (the holding company of TBFL).

The composite scheme of arrangement will come into effect from January 1, 2024.

Tata Coffee's market capitalisation is valued at over ₹5,993 crore as of December 29, 2023. Tata Coffee share price has grown over 204% in the last three years.

Financial highlights

  • Tata Coffee's total income in FY23 stood at ₹2879.5 crore, recording a 20.5 % year-on-year growth compared to ₹2,389 crore in FY22.
  • Tata Coffee' reported a net profit of ₹321 crore in FY23 as against ₹233 crore in FY22.
  • The basic earnings per share (EPS) rose to ₹14.07 in FY23 from ₹7.91 in the last financial year.
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