Ref: Business World issue:- 24 March 2014, Title: A cuppa that cheers !

o" e#plo$ees scripted Turnaround stor$ of the %anon &e'an tea co#pan$ %anon &e'an !eels (lantation )%&!(* co#pan$ is a associate co#pan$ of Tata +lo,al Be'era-es, pre'iousl$ .no"n as Tata tea/ A 0uoted ,$ Tho#as 1a#uel, 2or#er staff director %&!(, 3the plantation sector "as under-oin- a 'er$ tou-h period in earl$ 2000 s, "hen in put cost and "a-es "ere -oin- up, -lo,al de#and "as dull and the industr$ "as facin- the issue of o'er production "hich #ade runnin- plantations an un'ia,le ,usiness4/ To o'erco#e such a situation, TATA co#e out "ith inno'ati'e polic$ to stic. to the ,usiness of tea/ Thou-h it "as a ris. the$ decided to e5peri#ent "ith the 6#plo$ee Bu$ 7ut option )6B7*/ 6B7 is an inno'ati'e approach "ere, the e#plo$ees are responsi,le for the i#pro'e#ent of the or-ani8ation in the tree sense ie/ control is in the e#plo$ees loads/ With this approach, a ne" co#pan$, %&!(, "as for#ed "ith issued, su,scri,ed and paid up capital of Rs/ 29 crore / %&!( e5tended loans to its 12900 e#plo$ees to participate in the su,scription process/ 6'er$ "or.er "as entitled to :00 shares "ith 2ace 'alue of Rs 10 crore/ The issue raised Rs/ ;/04 crores a-ainst a tar-et of Rs/ < crores/ To ,rin- a,out the co#peteti'e pensona an intelli-ent polic$ "as e#plo$ed, each $ear one of e#plo$ees ,eco#es the ,oard direction ,ased on the annual perfor#ance and e'er$ one tries to #aintain that/ As a result this per pluc.er producti'it$ has increased fro# :0 -:2 .- in 2004 to 9: .- last $ear/ The turno'er has increased fro# Rs/ 12:/19 crore in 200= 0< to Rs/ 2>0/> crore in 2012 201: "hich it is e'ident that this approach has ,rou-ht a,out sustaina,ilit$ in ,usiness as "ell as continual i#pro'e#ent in the or-ani8ation/