Slide1: August 9,2005 TATA TEA LTD ANNUAL GENERAL MEETING 2004/05


Outline of Presentation: Outline of Presentation Performance Highlights New Initiatives Market Outlook Challenging for Leadership in Tea


Performance Highlights: Performance Highlights Tata Tea Revenues at Rs 950 Crores and Record PAT of Rs 129 crores Significant performance improvement by the Tata Tea Group which includes subsidiaries Tata Tea GB (the Tetley Group), Tata Coffee & Tata Tea Inc Global Revenues for the TTL Group of Companies are Rs. 3077 Crores and PAT of Rs 215 crores Consolidated EPS of Rs 38.33 per share


Tata Tea LtdAnnual Results-2004/05: Tata Tea Ltd Annual Results-2004/05


Tata Tea LtdConsolidated Accounts of the Group: Tata Tea Ltd Consolidated Accounts of the Group Previous year’s figures have been restated to make them comparable


 Tea Company Comparisons 2004/05: Tea Company Comparisons 2004/05 Rs/crores


New Initiatives: New Initiatives Plantation Restructuring A path breaking sustainable model through employee ownership Outright sale Alternative cropping and land use models being tested in order to enhance revenue Refinancing in Tetley lowers finance costs by £ 2.5 mn per annum


New Initiatives: New Initiatives Brands Fruit & herbals new launches in various geographies across the globe Test marketing of iced teas in UK Existing brands restaged in India Launch of Kanan Devan Strong leads to a major jump in market share Sania Mirza drives double digit growth of Tata Tea Tata Gold captures 2% of market share within 14 months of launch Increased market share in developing markets Success in opening up of new markets like Bangladesh, Pakistan, South Africa, Russia and Kazakhstan.


Market Outlook - India: Market Outlook - India Indications of higher crop, lower exports leading to sub optimal prices VAT implementation partial Indian domestic consumption of tea grows at 1.5% pa irrespective of competition from other beverages Whilst minimal there are indications of increasing trends in consumption of Tea bags Speciality Teas


 The Tetley Group Post Acquisition Performance: The Tetley Group Post Acquisition Performance ₤ ‘ mn


Tetley - Market Share: Tetley - Market Share GB–Tetley continues to outperform major competitors with brand leadership at 27.5% Canada –Specialty tea market leader; black tea at 42.3% Australia – Growing market share of tea bags at 11.3% USA –USA share up year on year. Value share of black tea 10.4%. France – Growing market share of tea bags at 11.3% Poland, Portugal, Spain, Jamaica & Baltic’s improve performance during the period Russia, Pakistan, Bangladesh,Kazaksthan & South Africa - new market entry shows promising results


International Growth : Russia +2000 outlets Bangladesh +20,000 outlets Pakistan 2.5% value share premium market International Growth South Africa – recent launch Tetley brand Europe - Estonia 7% volume share & growing


Challenging for Leadership in Tea: Challenging for Leadership in Tea The competitive canvas is now global with the Tata Tea operations strategically integrating with Tetley, to address opportunities for growth and manage the risk of address as a composite team Consumer mindsets for tea will determine our opportunity for growth rather than tea as defined by our current plantation holdings, black tea, packet and teabag formats and formulations We may be No. 3 today in size globally, but, we must be No. 1 in the way we address the global opportunity for growth and building customer relationships with sustainability


Backbone to successKey Enablers: Backbone to success Key Enablers SAP implementation to drive Management by Fact Real-time, on-line data and information leads to enhanced agility and customer-driven innovation Tata Business Excellence Model Drives Process Perspective across the organisation Committed personnel trained to introduce and implement process changes Sustainability of operations and adherence to TATA values Sustainability Organisation Structure in place Commitment to Social Responsibility a key facet of operations


Backbone to successKey Enablers: Backbone to success Key Enablers Balanced Score Card used as a Strategy Deployment and Performance Review tool Alignment in operations Individual goals synchronised with overall company objectives Cultural pillars for employee behaviour articulated with concomitant work environment : Lean, empowered & team-worked Passionately proactive Creative & Innovative


Global Opportunity for ‘Tea’: Global Opportunity for ‘Tea’ Growing Black tea markets define opportunity for geographical expansion of portfolio in overall Black tea - Potential sector revenue of Rs 48,000 Crs. Top 30 ‘Tea’ markets account for 90% of the market volume in the packaged black tea segment Tata Tea & Tetley present in only 35% of this market – with a combined revenue of Rs 3000 Crs. Green / Fruits & Herbal / Flavours / Specialty tea account for 49% value of all global packaged tea revenues ! - Potential sector revenue of Rs 48,000 Crs. RTD operates in a beverage arena that is at Rs 128,000 Crs. SIGNIFICANT POTENTIAL FOR ADDRESS OF REVENUE GROWTH


Slide17: Redefining Innovation THANK YOU