Tata Coffee Ltd and Tata Consumer Products Ltd (TCPL) merger will be completed in 12-14 months, an official said. And further revealing that the two companies are in the early stages of filing the regulatory process, he also said that the company does 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 investors meet.
The merger of all businesses of Tata Coffee with TCPL or its subsidiaries was announced as part of a reorganisation plan in line with its strategic priority of unlocking synergies and efficiencies.
For this, Tata Coffee shareholders will receive 3 equity shares of TCPL for every 10 equity shares held by them. Speaking about the demand scenario under the ongoing geopolitical crisis, the company 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.
Source: Mint