Calcutta, June 10: Tata Tetley will merge with Tata Tea with effect from April 1, 2005.

The Tata Tea board today approved the merger, which will beef up the company’s topline.

Tata Tetley was incorporated in 1992, when a joint venture was formed between Tata Tea and the UK-based Tetley group. The paid-up share capital of the venture was Rs 10 crore, with each partner holding equal shares.

In 2000, Tata Tea acquired Tetley, which then became a subsidiary.

Tata Tetley has a 100 per cent export-oriented unit at Cochin, Kerala and a domestic unit at Indore, Madhya Pradesh, said Percy Siganporia, managing director of Tata Tea.

“We have hived off some of our south Indian plantations recently. The move will affect our topline. We decided on the merger to push topline growth. The company has a turnover of Rs 55-60 crore.”

Tata Tetley sells most of its produce to operating companies of the Tetley group.

The company sells different varieties of tea bags and packet tea to Poland, Russia and Australia. The sales to Poland and Russia are mostly to Tetley group companies. The tea bags and packet teas are sold under two brands ? Tetley and Lyons. Packet tea includes both black as well as flavoured varieties. Flavoured packet teas are sold under the Earl Grey brand.

Supplies to West Asia are invoiced to Tata Tea/Tata International at agreed transfer prices. Tata Tetley’s manufacturing Base at Cochin is considered the most efficient and cost effective unit in the group. This unit produces different kinds of tea bags and packet teas with various pack size. The range goes up to 40. Tata Tetley specialises in tea bags manufacturing.

The ‘Draw String’ tea bag is an innovation of Tetley and is marketed only by Tetley in the world.