Tata Tea seeks buys in US and Russia...

Tata Tea is scouting for acquisitions in the US and Russia.

These could be outright acquisitions or strategic alliances. The company will also step up its effort to market itself more as an FMCG company rather than a plantation company.

R K Krishnakumar told DNA Money on the sidelines of the Tata Tea annual general meeting. "Acquisitions are on our agenda. This time we will be looking at US and Russia. We have already entered into a joint venture in Russia. We are armed with a warchest of $500 million for acquisitions."

Ratan Tata, chairman, Tata Tea, said at the company's annual general meeting on Friday that the sale of the Energy brand and transfer of the north Indian plantation division were important developments in the last one year. The company has recorded its highest ever turnover and net profit at Rs 1,263 crore and Rs 313 crore, respectively, he said.

"Looking forward we will make acquisitions, mergers and investments which have strategic value anywhere in the world to develop different beverage formats.

At present we have 42 brands in 45 countries," he said.

He seemed to be a bit concerned on the fact that the stock market still views Tata Tea as a plantation company.

"It may take some time to register that we have moved out of plantation business and are an FMCG company. We'll have to make some efforts on this," Tata said.

Tata Tea has transformed its complexion from a tea company selling bulk tea to branded products dependant on its plantations, then to a tea company with the freedom to acquire its raw material from any place in the world.

"We are looking at tea based products today where green tea is considered to be one of the foremost health giving drink in the planet today.."