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1. Tata Coffee Limited
Presentation to Analysts
February 21, 2007
3. Evolution of Tata Coffee Tata Tea acquired a controlling stake in Consolidated Coffee Ltd in 1990
Asian Coffee Ltd acquired in 1992
Asian Coffee Ltd and 2 smaller plantation companies merged into Consolidated Coffee Ltd in Sep 1999
Consolidated Coffee Ltd. renamed Tata Coffee Ltd. in April 2000
Tata Coffee Ltd. acquired High Hill Coffee (P) Ltd, a start-up Soluble coffee plant in 2004 and merged with Tata Coffee in 2005
Acquired Anamallais Plantations from Tata Tea in 2005
Acquired Eight O Clock Coffee, a specialty coffee brand in USA in 2006
4. Tata Coffees Businesses
5. Largest Coffee Producer in Asia 10,000 MT
Major Customers based in Europe
Largest Pepper producer in India 1,300 MT
Tea 7,500 MT
Large Timber Resources
Total Area 12,773 Ha
Total Cultivated Area 10,321 Ha
Employee Strength 9000 (approx) Plantations
6. Focus on Quality Won 4 awards at Flavor of India The Fine Cup Award at Bangalore, 2002, 3 awards at Boston,USA, 2003, 4 awards at Trieste, Italy 2004, 3 awards at Seattle, USA 2005 & 5 awards at Berne in 2006
Won the Gold Medal for the Best Robusta in the world at Paris in 2004
Kenneth Davids, a coffee expert from US commissioned by Coffee Board, to select portfolio of 10 best Indian coffees in 2004. Six of these were from TCL
TCL selected for supply of premium coffee to global premier coffee chains such as Starbucks, Illy Caf & Nespresso
7. Resilience & Initiatives Handling The Plantation Crisis
8. Robustness of Financial Results During Plantation Crisis
9. Pepper Emphasis continues to be on Value Addition
State of the art machinery procured from Tata Tea & relocated at Kushalnagar to meet Stringent Export Norms
Offerings extend to White Pepper, Black Pepper
10. Timber Large Rosewood reserves
Silver Oak inter-planted as shade for Coffee, with a sustainable cycle of Timber Supply
Annual felling program of 3000 to 4000 trees
R&D efforts led to high value offerings
Fire Retardant
Sound Absorbing
Finger Jointed
11. Timber Value Addition. Identified target customer Tata Motors
Glo Bus Targeting the niche transport segment. Tailor made to customer requirements. Expected huge demand
Star Bus Mid level customers who demand cost effective transport
TCL is the approved tier 1 vendor for wood based composites to Tata Motors
12. Initiatives - Soluble and Freeze Dried Coffee
13. Marketing Brands & Vending Tata Mr. Bean present in all Southern states of India
Vending All India spread with over 6000 machines
14. Initiatives - Africa Enter Uganda
Large coffee producer
Very competitive input prices
Government committed to value added exports. Various incentives extended for exports
Coffee the main export earner
Positive socio-political environment
Educated English speaking workforce
Entry level barriers expected to be relaxed by the importing countries due to Ugandas Least Developed Country status
Our efforts are to enter European markets through Africa with both bulk and brands
15. Overview of U.S. Coffee Market
16. U.S. Coffee Industry Overview
17. Premiumization of U.S. Coffee Industry
18. High Penetration into U.S. Household
19. Eight OClock Coffee The Company
20. Eight OClock - Key Milestones
21. EOC Channel Overview
22. Eight OClock Product Line Overview
23. Eight OClock Market Position
24. Eight OClock has a Leading Market Position in a Differentiated Niche
25. Eight OClock Distribution Network
26. EOC Acquisition - Rationale
27. The acquisition would add significant value to the Tata Group
28. The EOC acquisition completes the value chain for Tata Coffee
29. Tata Coffee plans to leverage the EOC brand for its future products and markets
30. Strategic Benefits and Synergies
31. Strategic Benefits for Tata Coffee
Strong brand presence
Global focus on brands
Opportunity to achieve greater globalization
Taking the EOC brand to new geographies to markets outside the US
32. Operational Synergies Pooling of global talent within Tatas beverage businesses to develop and execute an integrated business plan
Cross-utilization of distribution channels of EOC for tea, coffee and enhanced water sales
Coordination of a US beverage growth agenda for Tetley, Good Earth and Eight OClock Coffee and Glaceau
New Product Development: integrated NPD and applications across Tata's beverage businesses
33. Turnover & EBITDA Period Ended 31st December 2006
34. THANK YOU