Probably, its time for some activity in the fast growing tea business now. Mumbai based tea company, Sapat International is eyeing the British brands, Whittard of Chelsea and Taylors of Harrogate as potential acquisition targets, reports The Guardian.
Sapat International has parked £20m for these acquisitions, adds the report. After a failed attempt to get Dorset based Clipper in its kitty, the Mumbai based tea-maker looks at other British tea companies. While, Whittard makes over twenty varieties of tea, Taylors has huge overseas business spread over Australia, Austria, Belgium, Canada, China, Kroatia, Holland, Italy, Japan, Russia, South Korea,Taiwan, Spain and the U.S.A.
Through the acquisitions of these brands, Sapat can leverage the extent of reach of these brands in other markets.
The report quotes Nikhil Joshi, owner Spat International as saying “‘If the product says ‘Made in India’, it won’t make the right impression on the customer”. He added that an English brand like Ahmad Tea or Newby Teas may grow their leaves in India, but they are packaged and sold to the Russians as an English brand.
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Tata Group bought U.K’s Tetley in 2000 for $550 million. Three years ago, Apeejay Surrendra group, also from India, bought Typhoo for £80m. Earlier this year Tata was at it again, bidding $60 million for Clipper, a speciality producer of fairtrade and organic teas and coffees based in Dorset. Sapat also lodged a $48 million bid for Clipper but it fell short of the mark.