It should be known that Tata Tea is a large multinational. As a matter of fact, it is the second largest manufacturer of tea. On the other hand, it also distributes tea around the world. All along, the company has been growing to enter into new markets for long term sustainability. It was founded in 1964 but it has been making forays in foreign markets in recent years. The extent of the company’s investments in foreign markets has been made through various brands. In this case, they are distributed differently depending on the location (market) that has been targeted.
Currently, the company is the largest brand in Canada and United Kingdom. In addition, it is the second largest in the United States. As a matter of fact, the company has set up different subsidiary companies in a number of foreign markets. An example of this initiative can be seen from the way it has entered the Pakistan market. As a matter of fact, the company made a 100% acquisition of Tetley Tea of the UK in 2000. All in all, it is in an acquisition mood and this can be demonstrated from the way it is warming up to Russia.
The company has been planning to double up its investments in the next five years and this is commendable. For instance, it acquired Tetley Group in the UK for £271 million. Tata Tea has been making direct investments in the ownership of tea plantations. To make it sustainable, the company has come up with a $ 7.8 million equity investment that is expected to take care of other investments. The size of the company’s investments has been increasing as time goes by and this can be explained from the fact that it has operations in all continents.
Tata Tea is the largest company in volumes (in India) and this has been replicated to foreign markets. As a matter of fact, the company has been looking out for any viable acquisitions to expand to other markets around the world. In 2007, it made more than 5 acquisitions in different markets. An example is the acquisition of Eight O’ Clock Coffee Company in USA that was valued at $220 million. It should be known that Tata Tea has made investments of more than $ 20 billion in recent years and this seems to be bearing fruits.
The company has been strengthening its global operations to accelerate growth. As a matter of fact, it has been driving functional excellence to gain enough synergies. Most of its investments have been made for long term sustainability and this is good for growth. Tata Tea’s nature of investments can be said to focus more on acquisitions as a way of entering into new markets. From the 2009/2010 annual; report, the company has launched its operations in the Middle East and this is good for business. In addition, acquisitions have given it entry into the Russian market.
Tata Tea operates in over 40 countries and this has given it the market presence that it needs for profitability and long term sustainability. To enhance its operations in foreign markets, the company has six sales and marketing regions that are spread around the globe. Closer integration has enabled the company to identify opportunities in different markets. After making investments in different markets, the company’s turnover has grown by 19%. Its most notable brands include Eight O’clock, Jemc’a, Vitax, Tata Tea Agni, Chakra Gold, Tlon and others. All in all, the company has been launching its brands in new markets depending on their needs. Wholesomely, the company has been entering new markets to stretch its global footprint. This can be explained from its branded tea sales.