Tata Tea Quest for Growth 19832001

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TATA TEA LTD ANNUAL GENERAL MEETING 2003/04 PRESEN
TATION TO SHAREHOLDERS
8th September 2004
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Outline of Presentation

• Performance Highlights
• Market Outlook - India
• Challenging for Leadership in Tea

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Performance Highlights

• 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. 3112 Crores
• Tata Tea Revenues at Rs 839 Crores
• We are the No 2 Global Branded Business in Tea

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Tata Tea LtdConsolidated Accounts of the Group
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Tata Tea LtdAnnual Results-2003/04
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Tea Company Comparisons 2003/04
Rs/crores
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The Tetley Group Post Acquisition Performance
mn
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Market Outlook - India

• Adverse weather conditions impact India tea
  production during early season triggering higher
  prices at auctions
• Early 2004, Indian production setbacks offset
  higher Kenya and Africa origin production.
• Indian domestic consumption of tea grows at 1.5
  pa irrespective of competition from other
  beverages
• Indias (Accenture Study based) marketing drive
  to develop Pakistan, Russia, Germany Mid-East
  customer specific exports enhance performance in
  2004 reducing domestic tea availability
• CTC prices harden in India and influence global
  prices despite Africa and other origin influence.
  
• Price levels across auction centres in India show
  improvement from Rs 59/kg(June03) to Rs
  68/kg(June04)

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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. 2 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

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Challenging for Leadership in Tea

• Challenger Brand thinking will drive strategy
  and structure to realise our vision
• Consumer insight driven inputs will determine
  areas of address.
• Globally benchmarked or bespoke process
  development will systematically eliminate costs
  and allow leverage of better value proposition
  delivery to consumers
• We shall do so observing TATA values and pursue
  the Tata Group purpose in our own unique way by
  improving the quality of life and well being of
  all stakeholders, even as we hold our consumers
  and customers top-of-mind in everything that we
  do

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Tetley - Market Share

• GBTetley continues to outperform major
  competitors with m.a.t. July Vol. market share at
  28.3 up by 1.5 (No.1 brand)
• Canada Tetley outperforms major competitor with
  m.a.t. July Vol. market share at 38.8, (No.1
  brand ) leading Black tea with 43 and Specialty
  tea with 22.5 Vol. market shares.
• Australia Tetley teabag m.a.t. July Vol market
  share moves up to 20.7 growing by 0.8 (No. 3
  brand)
• USA Market share up to 11.2 growing by 0.7
  (No.3 brand)
• France, Poland, Portugal, Spain, Jamaica
  Baltics improve performance during the period
• Russia, Pakistan, Bangladesh Kazakhstan, new
  market entry programs expand brand footprint

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Innovation Driven Growth Major Geographic
entries

• Russia Sept 2004
• 8,000 distribution
• outlets

Bangladesh Feb 2003 - 30,000
distribution outlets

• Pakistan - Jan 2004
• 60,000 distribution
• outlets

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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
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Consumers define the success of Tata Tea
THANK YOU