Tata Tea buys stake in SA firm

MUMBAI – Tata Tea Ltd., the world’s second-largest branded tea maker, said yesterday it had bought a 33 per cent stake in Joekels Tea Packers, a South African tea-blending and packing firm.

Tata Tea said Joekels was the third-largest tea firm in South Africa, with revenues of US$5 million and a five per cent market share. It did not say what the cost of the deal was.It was the fifth overseas investment by Tata Tea in the last 12 months.In August, its purchase of a 30 per cent stake in US-based Energy Brands for US$677 million was the biggest-ever foreign investment by a non-state-run Indian firm.Tata Tea, part of the salt-to-software Tata group, has been investing in branded products to increase profitability while trimming its tea plantation holdings where the returns are low.Nampa-ReutersIt did not say what the cost of the deal was.It was the fifth overseas investment by Tata Tea in the last 12 months.In August, its purchase of a 30 per cent stake in US-based Energy Brands for US$677 million was the biggest-ever foreign investment by a non-state-run Indian firm.Tata Tea, part of the salt-to-software Tata group, has been investing in branded products to increase profitability while trimming its tea plantation holdings where the returns are low.Nampa-Reuters