Date of Establishment 1962

Revenue 378.805 ( USD in Millions )

Market Cap 76372.223395 ( Rs. in Millions )
Corporate Address 1, Bishop Lefroy Road, ,Kolkata-700020, West Bengal
www.tatatea.com
Management Details

Chairperson - R N Tata
MD - P T Siganporia
Directors - A R Gandhi, A Singh, Ajay Shankar, Analjit Singh, D B Engineer, D K Sen, F K
Kavarana, J Bilimoria, J S Bilimoria, M Srinivasan, Mallika Srinivasan, P D Leeladhar, P D
Unsworth, P T Siganporia, R K Krishna Kumar, R N Tata, Ranjana Kumar, S Talwar, U M Rao, V
Leeladhar, V Madan, Y H Malegam
Business Operation Tea/Coffee
Background

Tata Tea was set up in 1964 through a joint venture with UK-based James Finlay and the Tata
Group for manufacturing tea and coffee. Currently Tata Tea and the UK-based Tetley group have
the world’s second largest branded tea operations with a presence in 40 countries.

The company has portfolio of five brands in th

Financials Total Income - Rs. 18483.35 Million ( year ending Mar 2010)
Net Profit - Rs. 3914.702 Million ( year ending Mar 2010)
Company Secretary V Madan
Bankers
Auditors NM Raiji & Co, Lovelock & Lewes

COMPANY HISTORY.........
Tata Tea was set up in 1964 through a joint venture with UK-based James Finlay and the Tata
Group for manufacturing tea and coffee. Currently Tata Tea and the UK-based Tetley group have
the world’s second largest branded tea operations with a presence in 40 countries.

The company has portfolio of five brands in the domestic market namely Tata Tea,Tetley, Kanan
Devan, Chakra Gold and Gemini.

It has distribution network of 38 C&F agents and 2500 stockists catering over 1.7 million retails
outlets. It has three subsidiaries namely Tata Tea Inc,Tata Coffee & Tata Tea (GB).

The company has its headquarters in Kolkata and owns 27 tea estates in states like Assam, West
Bengal and Kerala.It has a 100% export unit for instant tea located in Munnar, Kerala.It 15,900
hectares of land under tea cultivation. Tata Tea produces 30 million kg of black tea annually.

Tetley offers customized products to each country ranging from black, green, fruit and herbal
teas, iced ready-to-drink teas and an extensive range of exotic speciality tea. It caters to
Australian, Middle East, West Asia, North Africa, Poland, Russia and Kazakhstan markets.Tetley
contributes to two-third of the total turnover of Tata tea.

Tata Tea is also into strawberry preservation business. It offers vocational rehabilitation as well
as an additional source of income to elder children.

Milestones

Tata Tea won the Mother Teresa Commendation Award for Corporate Citizenship.
It received Golden Peacock Innovative Product & Service Award.

It received National Safety Council, Kerala Chapter Award (2001) for outstanding performance in
Industrial Safety as Runner Up by achieving the lowest frequency rate of accidents in Gr. III(B)
Engineering Industries.

Future plans:

Tata Tea is going in for an image makeover to attract youth consumers through its 'jaago re'
campaign , its retail initiative of 'Chai Unchai' and by launching newer products like ready-to-drink
beverages.

KEY EXECUTIVE....................................

S.No Name Designation

1 R N Tata
Chairman
3 P T Siganporia
Managing Director
2 V Madan
Company Secretary
4 F K Kavarana
Director
5 U M Rao
Director
6 A R Gandhi
Director
7 M Srinivasan
Director
8 A Singh
Director
9 J S Bilimoria
Director
10 V Leeladhar
Director
11 Ranjana Kumar
Director
12 Ajay Shankar
Director
13 P D Unsworth
Director
14 R K Krishna Kumar
Vice Chairman
15 V Madan
Vice President
16 S Talwar
Whole Time Director
COMPETITORS....................................

Company Sales
(Rs.Million) Current
Price Change (%) P/E Ratio Market
Cap.(Rs.Million)52-Week
High/Low
Tata Global Beverage 16979.23 123.95 0.32 19.85 76372.22 130/82
Mcleod Russel 10708.64 245.50 1.22 11.76 26816.66 312/165
Tata Coffee 3272.38 621.10 2.50 34.99 11598.44 648/286
Bom Burmah Trdg Corp 2938.82 557.00 -1.21 34.50 7828.41 686/273
Parry Agro Inds 1520.23 1922.00 0.00 15.35 7220.60 1925/1892
Assam Company India 2261.71 23.15 -3.14 33.17 7186.45 28/15
Dhunseri Petrochem 11401.04 189.80 0.64 6.35 6649.45 199/137
CCL Products 2638.48 336.50 -1.09 14.22 4483.04 381/142
Jay Shree Tea 4058.05 192.25 -0.62 7.04 4268.60 209/114
Goodricke Group 3711.81 144.50 -1.63 7.99 3141.72 196/111
Rossell Tea 764.64 345.00 0.32 13.14 2550.41 407/50
Warren Tea 1992.28 164.95 1.48 8.08 1735.71 251/144
Harri. Malayalam 3254.03 90.95 0.33 54.27 1677.60 158/84
Duncans Inds 1562.97 16.80 0.90 11.95 886.16 22/9
Joonktollee Tea&Inds 359.39 207.60 -0.43 9.62 666.13 256/115
Apeejay Tea 925.61 101.50 0.00 0.00 609.00 105/101
B&A 682.79 138.30 0.25 5.30 423.93 272/100
Diana Tea 534.50 22.60 0.22 5.65 339.55 39/20
Asian Tea 1003.11 31.55 0.80 24.34 315.50 42/26
Terai Tea 523.89 42.50 -1.05 47.74 295.47 53/31
Neelamalai Agro 183.48 366.25 -4.71 7.27 229.77 504/343
Tezpore Tea 13.98 50.35 0.00 0.00 109.77 53/50
Assambrook 282.74 15.65 0.00 8.99 101.12 16/16
Tyroon Tea 132.40 25.35 -1.93 3.81 86.75 37/18
Hanuman Tea 31.04 10.45 0.00 0.00 80.32 0/0
T&I Global 283.14 14.49 5.00 6.37 73.43 18/6
Highland Inds 717.99 52.55 0.00 34.91 64.37 0/0
Ledo Tea 97.68 73.00 -1.48 19.51 63.04 102/46
Beeyu Overseas 70.53 3.17 0.63 0.00 44.83 5/3
Longview Tea 0.00 12.95 -4.85 155.65 38.91 25/12

PRODUCTS.................

Product Name Year Month Sales

Quantity Sales Value(Rs.Million) % of STO
Tea 2010 03 850.44 16868.20 99.33
Others 2010 03 0.00 94.17 0.55
Tea 2009 03 845.47 13578.96 99.72
Others 2009 03 0.00 25.11 0.18
ATA TEA LTD. V. THE COMMMISSIONER OF CUSTOMS, CHENNAI [1999] RD-SC 401 (25
November 1999)

S.P.Bharucha, A.P.Misra, R.C.Lahoti

R.C. Lahoti, J.

The appellant is a tea company. In the year 1982 it imported two decanter machines from
Germany. The customs duty, additional duty and the other duties leviable thereon were duly paid.
The machines were installed at the tea factory of the appellant situated at Munnar (Kerala). In the
year 1992 some parts of the machine requiring such repairs as could not be carried out in India,
were sent to Germany after obtaining previous permission of the Government of India. The parts
were repaired and thereafter re-imported in July, 1993. The appellant claimed exemption from
payment of customs duty under Notification No.13/81 which was denied by the Assistant
Collector of Customs. An appeal preferred by the appellant before the Commissioner of Customs
(Appeals) was allowed. The Revenue preferred a further appeal before the CEGAT which has
been allowed and the order of the Assistant Collector of Customs restored.

Cross appeal preferred by the appellant has been dismissed.

Aggrieved by the order of Tribunal, the appellant has filed these appeals under Section 130 E of
the Customs Act, 1962.

The only question arising for decision is whether the appellant is entitled to benefit of Notification
No.13/81 read with Export Import Policy, 1992-97 (hereinafter `Policy', for short). Export and
Import Policy 1992-97 announced certain benefits and privileges to 100% export oriented units
(EOUs). Vide order dated 9th June, 1992 the Government of India declared the appellant a unit
entitled to facilities and privileges admissible under the 100% export oriented scheme by
permitting the conversion of the appellant from existing domestic tariff area (DTA) into 100% EOU
at Munnar in the State of Kerala for the manufacture of instant tea powder and aqueous tea
aroma (by-product) upto the specified capacity. This decision of the Government of India entitled
the appellant to import additional capital goods worth Rs.300 lacs CIF for the project as per the
list enclosed which included decanters, two in number. It was also specified that the import of
capital goods, raw materials and components for production under this scheme shall be exempt
from customs duty. Availing the benefit of EOU sanction letter the appellant had imported capital
goods (other than those in issue) worth Rs.225 lacs. A balance of Rs.75 lacs entitlement was still
available to the appellant.

According to the appellant the cost of repairs incurred in Germany was Rs.38,06,017/- which was
declared by it to be the value of the goods for the purpose of re-importation in terms of
Notification no.13/81.

Notification No.13/81 has been issued in exercise of powers conferred by sub-section (1) of
Section 25 of the Customs Act, 1962. The Central Government has exempted capital goods, inter
alia, when imported into India for the purpose of manufacture of articles for export out of India by
100% EOUs provided that the importer has been granted necessary licence for the import of the
goods for the said purpose. This is one of the several conditions that is required to be satisfied.

The Import Export Policy 1992-97, vide para 24, provides that second hand capital goods and
any other second hand goods shall not be imported unless permitted by this policy or in
accordance with a licence issued in this behalf. Para 25 catalogues (a) to (l) sectors of the
industry for which second hand capital goods may be imported without a licence. Admittedly, the
appellant does not fall in any of such categories. Para 26 provides that any other second hand
capital goods (i.e. other than those specified in para 25) may be imported in accordance with a
licence issued in that behalf. Para 31 permits imported capital goods or parts thereof being sent
abroad for repairs and re- imported but subject to certain specified conditions. Para 159 permits
conversion of an existing domestic tariff area (DTA) unit into an EOU. It is specifically provided -
"no concession in duties and tax shall, however, be available under the scheme for plant
machinery and equipment already installed". Para 172 allows the units to re-import, after repairs
abroad, machinery equipment exported by them for this specific purpose and payment of foreign
exchange for this purpose.

There is yet another notification No.204/76 issued under Section 25(1) of the Customs Act
whereby articles when re-imported into India after having been exported for repairs subject to
compliance with certain specified conditions have been declared liable to payment of duty only on
the value of such re-imported goods which would be made up of the fair cost of repairs carried
out plus insurance and freight charges both ways.

The Tribunal has referred to and made analysis of all the abovesaid provisions and then
concluded that the Import Export Policy 1992-97 read with Notification No.13/81 gives exemption
to the goods imported for the first time in India and does not cover the goods already imported
and sent abroad for the purpose of repairs and then re- imported to India.

Having heard the learned counsel for the parties, we are of the opinion that the order of the
Tribunal cannot be found fault with. Under Section 20 of the Customs Act, 1962 read with the
definition of `import' as given in clause 23 of Section 2, imported goods would include re-imported
goods as well and therefore the goods sent out of India and re- imported would also be liable to
payment of duty in the same manner in which they would have been liable if imported for the first
time in India. In the matter of goods sent out for repairs only there is exemption notification
no.204/76.

The benefit thereof has been taken by the appellant. A perusal of Import Export Policy 1992-97
and Exemption Notification No.13/81 clearly shows that the benefit thereof was not available to
the appellant in the case at hand. The machinery parts exported for repairs and re-imported
thereafter did not require any licence for the import of the goods, which licence is one of the
conditions precedent to attract applicability of Notification No.13/81. Same is the inference which
flows from the provisions contained in paragraphs 24, 25, 26 and 31 of the Policy. Para 172 of the
Policy makes it legal to re-import after repairs abroad the machinery and equipment exported
specifically for the purpose of repairs and also allows release of foreign exchange payment for
the purpose. Both these things may not have been permissible but for para 172 of the Policy. This
is the only effect of para 172. Reliance on para 172 so as to link the Policy with Notification
No.13/81 is misconceived. Para 159, while permitting conversion of an existing DTA into EOU,
specifically excludes any concession in duties and tax (under the Policy) being made available to
plant and machinery already installed. The parts exported and re-imported by the appellant were
of the machinery `already installed' on the date of promulgation of the Policy. They were certainly
not covered thereunder.

For the foregoing reasons, the appeals are held liable to be dismissed and are dismissed
accordingly though without any order as to the costs.