August 9,2005

1
TATA TEA LTD ANNUAL GENERAL MEETING 2004/05
August 9,2005
2
Outline of Presentation

• Performance Highlights
• New Initiatives
• Market Outlook
• Challenging for Leadership in Tea

3
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

4
Tata Tea LtdAnnual Results-2004/05
5
Tata Tea LtdConsolidated Accounts of the Group
Previous years figures have been restated to
make them comparable
6
Tea Company Comparisons 2004/05
Rs/crores
7
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

8
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.

9
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

10
The Tetley Group Post Acquisition Performance
mn
11
Tetley - Market Share

• GBTetley 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 Baltics
  improve performance during the period
• Russia, Pakistan, Bangladesh,Kazaksthan South
  Africa - new market entry shows promising results

12
International Growth
Europe - Estonia 7 volume share growing
Russia 2000 outlets
Bangladesh 20,000 outlets
Pakistan 2.5 value share premium market
South Africa recent launch Tetley brand
13
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

14
Backbone to successKey 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

15
Backbone to successKey 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

16
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
17
Redefining Innovation
THANK YOU