Three TCPL shares for every 10 of Tata Coffee, merger in 12-14 months
The merger of Tata Coffee Ltd with Tata Consumer Products Ltd (TCPL) will be completed in 12-14 months and the companies are in the early stages of filing the regulatory process, an official said.
Tata Coffee Ltd officials do not foresee any roadblocks in the process of merger.
“It would take about 12 to 14 months. So that’s what the timeline is,” Tata Coffee Ltd ED & CFO K Venkataramanan told analysts at an investors meet.
TCPL has announced the merger of all businesses of Tata Coffee with itself or its subsidiaries as part of a reorganisation plan in line with its strategic priority of unlocking synergies and efficiencies.
Under the scheme, shareholders of Tata Coffee will receive an aggregate of 3 equity shares of TCPL for every 10 equity shares held by them.
Speaking about the demand scenario under the ongoing geopolitical crisis, the management said that the demand remains firm, even for Russia and Europe.
“Tata Coffee have got a healthy order book and customers are asking for continuing the shipments,” Venkataramanan said.
“Coffee being something very common and widely drunk beverage, that impact is not going to be felt, that’s our view,” the company said.
However, the company acknowledged inflationary pressure and logistics concerns for shipments in some markets.
Officials informed the investors that the company hopes to double the pepper business in the next 3-4 years.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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