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Tata Chemicals and Total Produce
enter into a joint venture
Mumbai, February 1, 2007
Tata Chemicals Limited (TCL) and Total Produce Plc (TOTAL
PRODUCE) have entered into an agreement to form a 50/50 joint
venture company in India. The objective of the JV is to create
state-of-the-art distribution facilities for fresh fruit and
vegetables across India by leveraging the individual strengths
of both partners.
TOTAL PRODUCE is Europe's largest fresh produce company and
comprises the general produce business, which was demerged
from Fyffes Plc on 30 December 2006. The group generates a
turnover in excess of $2.5 billion (€ 2 billion), has
close to 3,900 employees and trades from more than 80 facilities
throughout Europe. Shares in TOTAL PRODUCE are traded on the
Dublin and London stock exchanges.
TCL is a global company operating in the chemicals, food
additives and agri space. It is listed on the Bombay Stock
Exchange (BSE) as well as National Stock Exchange (NSE) with
consolidated revenues in excess of $1 billion (€ 0.78
billion) annually. The company has over 3000 employees and
is part of the $22 billion (€ 17 billion) Tata group.
Over the years the company has built a network of agri service
centres, branded as 'Tata Kisan Sansar' (TKS), which has long
established relationships with growers through the provision
of farm inputs and advice. This experience will be used to
channel the produce from source to the distribution facilities.
TKS outlets numbering over 500 give the company a unique advantage
of being close to the producer. Both parties view this as
an opportunity to bridge the gap between producer and end
consumer, which will significantly increase efficiencies,
improve shelf-life and reduce product loss in the supply chain.
This new venture will help Indian farmers to improve their
incomes and develop the skills needed to raise the quality
of Indian farm produce.
It is intended to first establish facilities in two centres
in the north and east of the country at a cost of Rupees 260
million, $5.7 million (€4.5 million), both of which are
strongly supported by the current TKS network. The company
plans in due course, to expand this network across India.
Mr Homi Khusrokhan, Managing Director, Tata Chemicals Ltd,
said, "We are very pleased to announce our entry into
fresh produce. The experience of our TKS network gained over
the years coupled with expertise in agronomy, gives us a unique
edge in this business. TOTAL PRODUCE brings with it a wealth
of knowledge, experience and a proven track record of success
in this sector. We are delighted to partner with TOTAL PRODUCE
in this new and exciting venture to take fruit and vegetable
production and distribution in India to international standards
and, at the same time, ensure improved incomes for farmers."
Carl McCann, Chairman of TOTAL PRODUCE, added, "We are
very pleased to have entered into the joint venture with a
company belonging to a highly reputable group like TATA. We
believe India, with its fast growing economy and one of the
world's largest populations provides great potential to build
a large and successful business. India is in addition one
of the largest producers of fresh produce in the world."
About Tata Chemicals Ltd.
Established in 1939 Tata Chemicals Limited is India's leading
manufacturer of inorganic chemicals, fertilizers and food
additives. Part of $22 billion Tata Group, the company owns
and operates the largest and the most integrated inorganic
chemicals complex in the country at Mithapur, Gujarat. The
company's state of art fertilizer complex at Babrala, Uttar
Pradesh, is known for its world class energy efficiency standards,
and has won several awards in the field of environmental conservation,
community development and safety. TCL' s phosphatic fertilizer
complex at Haldia in West Bengal is currently the only manufacturing
unit for DAP /NPK complexes in West Bengal.
The company has a consolidated annual turnover of over $1
Bn and employs over 3000 personnel. The acquisition of an
equal partnership in Indo Maroc Phosphore S.A. (IMACID) along
with Chambal fertilizers and global phosphate major, OCP of
Morocco recently, was the first step that TCL took towards
internationalization In 2006 TCL acquired Brunner Mond group
in UK making it the world's third largest producer of Soda
ash with manufacturing locations in three continents.
About Total Produce
Total Produce is one of the leading operators within the European
general produce sector. The group generates a turnover in
excess of EUR 2 billion, has almost 3,900 employees and trades
from more than 80 facilities throughout Europe with operations
in Ireland, the United Kingdom, Sweden, Denmark, Spain, Italy,
Holland, Belgium, France, the Czech republic and Slovakia.
The company also has an operation in India. The group is comprised
of the general produce business which was demerged from Fyffes
plc on 30 December 2006. Shares in Total Produce were admitted
to trading on the IEX and AIM markets of the Dublin and London
stock exchanges on the 2nd January 2007.
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