Friday, July 15, 2005

Tata Coffee to raise short-term loans

TATA Coffee Ltd plans to raise short-term debt to fund the acquisition of six tea and coffee estates from Tata Tea. Tata Coffee is acquiring 4,300 hectares from Tata Tea for Rs 55 crore. These high-yielding top estates are located in Kerala and Tamil Nadu and produce some 6 million kg of tea and about 500 tonnes of coffee. Tata Coffee has two small tea estates in Coorg and Chikmagalur districts of Karnataka that roduce some 1.2 million kg. With the proposed acquisition that is set to conclude by end-August, Tata Coffee's total tea holdings will increase to around 4,000 hectares, whereas the total coffee holdings would increase to over 7,000 hectares