Leading bourse National Stock Exchange (NSE) today gave its approval to merger of Alliance Coffee with its listed parent firm Tata Coffee saying the amalgamation does not violate provisions of securities law.
Tata Coffee in September had announced that its board has approved the merger of Alliance Coffee with itself, consequent to which the draft scheme of amalgamation was filed with stock exchanges for necessary approval. (NSE also said that Sebi’s…)
In a communication to Tata Coffee, NSE said it is granting its ‘no-objection approval’ to the proposed scheme and this observation letter will be valid for six months starting today, within which period the company would have to file the scheme with the High Court for further clearance.
Another bourse, BSE granted its no-objection to the scheme on November 21.
NSE also said that Sebi’s observations on the scheme requires Tata Coffee to display ‘fairness opinion’ submitted by it on the website of listed firm.
“We have perused ‘draft scheme of arrangement’ and related documents submitted by Tata Coffee including the confirmation of the company secretary that the scheme so submitted does not in any way violate, over-ride or circumscribe the provisions of securities laws or stock exchange requirements,” NSE said.
“Accordingly, we do hereby convey our ‘no-objection’ with limited reference to those matters having a bearing on listing /delisting/ continuous listing requirements within the provisions of the Listing Agreement, so as to enable the company to file the scheme with the High Court,” it added.
According to norms, companies seeking to execute merger or de-merger strategies need to obtain ‘no-objection certificate’ from stock exchanges.
source: http://www.articles.economictimes.indiatimes.com / The Economic Times / Home> Markets> Commodities> Exchanges / by PTI / November 25th, 2013
PHOTO: Reuters
The Coffee Board will take up growing coffee, on a pilot basis, in Darjeeling, where it has found some areas to be good for coffee cultivation.
The Board will grow coffee in an area of 500 hectares, and is in discussions with the West Bengal government for this.
“Darjeeling is a very suitable area for coffee,” Board Chairman Jawaid Akhtar told BUSINESS TODAY. The Board’s survey last year has also found a few pockets of Himachal Pradesh suitable for growing coffee.
The areas under coffee cultivation were expanding with about 3500-4000 hectares coming under coffee in Andhra Pradesh every year. “We have also identified some new places in the traditional areas of Karnataka, Kerala and Tamil Nadu for expanding coffee,” Akhtar said.
The Board, meanwhile, is building capacity in the Indian coffee industry to ensure the coffee beans exported into the European market met the highest standards for the espresso coffee.
“Most of our coffee goes to Italy, where more than 90 per cent of people drink Espresso. Hence, we are educating the coffee community on the finer aspects from harvesting to processing so that our beans are of the highest standards and buyers overseas are satisfied,” Akhtar said.
In the global markets, he said, the Board was positioning Indian coffee a high quality coffee grown in sustainable environment. The coffee grown in Western Ghats was of superior quality as the beans from this region have a distinct aroma and taste. He appealed to coffee growers in this region not to shift from Arabica to Robusta to overcome short-term hardships.
“India grows both Arabica and Robusta, and our Robusta gets 40 per cent premium over the average international price for Robusta. If we grow only Robusta, this premium will be hurt.”
The planters, Akhtar said, were growing coffee under tough conditions, and he appealed to them to follow the best practices as recommended by the Coffee Board. Instead of looking at only coffee for income, they should also grow fruits and spices, and maximise the estate income.
The post blossom forecast for 2013-14 had estimated coffee production to be at 3.47 lakh tonnes. However, the production in the ensuing harvest season is likely to drop by about 10 per cent due to drought in March-April followed by heavy rains from May to August.
The Coffee Board, meanwhile, is also pushing for increase in domestic consumption which is about one lakh tonnes now.
(*The headline of an earlier version of this story was changed to better reflect the copy.)
source: http://www.businesstoday.intoday.com / Business Today / Home> Sectors> Agriculture> Story / by K.R. Balasubramanyam / Bangalore – November 23rd, 2013
Planning to open two more stores in the city by year-end. Coorg coffee on menu.
Coorg and Chikmagalur will soon find a mention in Starbucks stores worldwide.
The US coffee chain is planning to sell arabica coffee sourced from the estates of Coorg and Chikmagalur in its global stores.
Called India Estates Blend, this medium roast coffee was launched last month to be sold in packages of 250 gms at the 30 Starbucks stores in Mumbai, Pune, NCR and Bangalore.
It is sourced, roasted and packaged in India.
John Culver, group president, Starbucks China and Asia Pacific, channel development and emerging brands, says the company would “take this Indian coffee to our 17,000 stores globally.”
Explaining that Starbucks is evaluating plans to make India Estates Blend available globally, Culver says they source coffee from 30 countries.
“Over the last year, we discovered there is very high quality arabica available in India. So it will be good to take India coffee, blend it with other coffees, and sell in the global stores.”
Operational through a 50:50 joint venture between Tata Global Beverages and Seattle-based Starbucks Corporation, Tata Starbucks has also set up a coffee roasting and packaging plant at Kushalnagar in Coorg with a capacity to produce 375 metric tonnes.
India Estates Blend is the second blend brought out by the firm after the India Espresso Roast, that is sold at their outlets across India.
Culver wants India to be one of the top 5 markets for Starbucks globally. Speaking during the launch of the group’s flagship outlet in Bangalore, Culver says Bangalore reflects “our commitment to expand across India.”
Entering India in October 2012, the company operates 29 other stores across NCR, Mumbai and Pune.
Starbucks is planning two more stores in Bangalore before December-end, at Phoenix Market City and Orion Mall. The management believes they can build a ritual of Starbucks in the daily lives of Indians.
Brand consultants feel despite the cluttering in the market in Bangalore, which is the home for Cafe Coffee Day, Starbucks will establish its niche, simply on the basis of its image.
A cuppa numbers
India is a leading exporter of coffee. In the coffee year October 2012-September 2013, India exported 3 lakh tonnes of coffee, as per the Coffee Board. The US and EU are main markets for Indian coffee.
The per capita consumption of coffee in India is low, at 90 grams. In Brazil, another leading coffee exporter, per capita consumption is 6 kg, as per data by Care Research.
The organised cafe market across India boasted sales of Rs 1,246 crore in 2012, and is expected to touch Rs 2, 222 crore by 2017, as per consulting firm Technopak.
The number of cafes in the country will grow from 1,950 last year, to 2,900 by 2017.
Price of coffee minus taxes, can range from Rs 70-80 for a simple cappuccino or latte, to over Rs 180-200 for flavours like hazelnut, or cinnamon, or caramel.
Currently, Cafe Coffee Day is the leading player with 1,498 outlets across India. It has plans of reaching 2,000 outlets by 2015.
source: http://www.dnaindia.com / DNA / Home> Bangalore> Report / by DNA Correspondent, Place:Bangalore, Agency:DNA / Saturday, November 23rd, 2013
With the traditional coffee growing area in the country almost reaching its saturation point, new and non-traditional areas are coming up.
Currently, the three southern states Karnataka, Kerala and Tamil Nadu dominate coffee production. However, Andhra Pradesh and Odisha are also joining the group.
According to the Coffee Board of India, the three southern states account for about 92 per cent of the total coffee growing areas in the country.
While Karnataka leads the pack in terms of coffee growing with an area of about 53 per cent, Kerala accounts for 28 per cent followed by Tamil Nadu with 11 per cent. Now the governments in Andhra Pradesh and Odisha are showing keen interest to popularaise the coffee production.
“In both the states, coffee plantation is expected to come up in an additional area of over 10,000 hectares by the end of the 12th plan period,” a senior officer from Coffee Board told Express. People living in hilly areas like Munumuluru, Chintapalli (E), Chintapally (W) and Arakuvalley in Andhra Pradesh and Koraput in Odisha have taken to coffee plantation.
At present, the number of coffee producers in Andhra Pradesh stand at about 115,877 and about 45,715 in the neighbouring. According to the Coffee Board officials, the total post blossom estimate of coffee production for 2013-14 was pegged at about 3.47 lakh metric tonnes.
Both the states are expected to contribute about 6,230 metric tonnes. At present, the total planted area accounts for about 58,131 hectares in AP and about 3,835 hectares in Odisha. Vijayan Rajesh of United Planters Association of South India, however, said the attempt to popularaise coffee growing in AP and Odisha, was only of ‘social interest rather than any commercial interest.’
source: http://www.newindianexpress.com / The New Indian Express / Home> States> Karnataka / by M Venkatesh – ENS – Bangalore / October 17th, 2013
India is the only major market in the world where Starbucks has been able to source and roast coffee beans locally. New York :
Starbucks CEO Howard Schultz has voiced his admiration for industrialist Ratan Tata’s “grace” and wisdom, saying he was moved by the business icon’s words during the launch of the coffee chain’s flagship store in Mumbai last year.
“At the celebratory dinner the night of the Mumbai (store’s) opening, Ratan Tata offered a toast that really moved me,” Schultz writes in an essay in the book ‘Reimagining India: Unlocking The Potential of Asia’s Next Superpower’, edited by global consulting firm McKinsey.
Schultz recalls that while describing Starbucks’ India launch and Tata’s remarks at the celebrations later to a gathering of his company officials in the US, he even began to cry and was overpowered by emotion.
“A few weeks after returning from the opening of our Mumbai store, we held one of our big open forum meetings where we get the entire company together. And as I tried to describe that moment for everyone, something came over me. I started to cry. It just hit me emotionally.
“In India, we’d had a chance to do something extraordinary, something truly world class. And I am excited that we have a chance to grow and give back in a land where so much opportunity lies ahead and to contribute to making it a little better place than the one we found,” Schultz said.
Tata’s remarks on the night of the Mumbai opening were “perfect and so heartfelt,” Schultz said in the essay, adding that he considers Tata to be a “man with so much grace.
“I could sit and listen to Ratan Tata for days on end. He has so much wisdom and insight not only about India but about the world,” he said.
The book is a compilation of over 60 essays on India’s challenges and opportunities written by CEOs, academicians, economists and historians, including Wipro chief Azim Premji, Microsoft founder Bill Gates and India’s chess legend Viswanathan Anand.
In his toast, Tata had said in his “dry, understated way” that the Tata group has had a bit of success in the various endeavours it has undertaken over the years.
“We have partnered with some good global companies. But I have never had the kind of recognition I have received from this relationship with Starbucks. People I have never met stop me on the street just to congratulate me.
“And what I have learnt from this relationship is that Starbucks is far more than just a company that sells coffee,” Tata had said.
Schultz said his company has developed an “incredible relationship” with the Tata organisation and he cannot imagine bringing Starbucks to India without the assistance it has received from Tata.
Schultz also said India is the only major market in the world where Starbucks has been able to source and roast coffee beans locally.
The company worked with Tata officials on an India-only espresso roast designed specifically for the Indian market.
Schultz said people in Starbucks’ coffee department were not “exactly thrilled” when he told them he was looking at a different approach to sourcing coffee and roasting process under the partnership with Tata for India.
“They were more sceptical when I said we want to create a different blend of coffee for India,” he said, adding that his team was incredulous when he said the India blend was not going to be roasted by the Starbucks team, a first in Starbucks’ 42-year history.
Schultz said to get the blend he wanted for India, “we’d have to share with Tata some of the family jewels — roasting secrets we’ve perfected over four decades and guarded very closely.
“It was a real test of our trust in our new partner,” he said, adding that teaming with Tata to come up with an Indian roast was a huge step for Starbucks.
source: http://www.thehindubusinessline.com / Business Line / Home> Companies / by PTI / New York – November 19th, 2013
Interview with Chairman, Coffee Board Jawaid Akhtar
After coffee producers in Brazil and Vietnam used mechanisation and genetically improved plants to increase crop yields, Indian coffee growers are trying to replicate their success. However, many allege the Indian government has not provided adequate incentives to increase crop yields or protect these from diseases such as the white stem borer. On the sidelines of the UPASI-KPA Coffee conference in Bangalore, Jawaid Akhtar, chairman of the Coffee Board, spoke to Antonita Madonna on these allegations and on the focus of the commerce ministry. Edited excerpts:
Growers allege, unlike their counterparts in Brazil, they have not been provided adequate incentives. How would the Coffee Board address that?
Brazil and India cannot be compared so easily. The methods used by them cannot be correlated with India’s, as the plantations in the two are very different. In Brazil, the higher crop yield is not as much the result of incentivisation as of the use of new varieties, new agronomical practices, etc. Production in India is increasing, but at a very slow pace due to several constraints. The drastic difference between the progress in India and in Vietnam and Brazil is because the soil is less conducive here. Vietnam and Brazil have volcanic soil. In India, coffee is not grown under direct sun, but under the cover of trees. So, productivity suffers, but quality increases.
Second, coffee growers have to show more dynamism. They have to put in more effort and use better inputs. What it requires is more water, more use of agrochemicals, etc. The Board is regularly working on research. We also disseminate the findings of these studies among growers. It is an ongoing programme.
What research and development is the Board doing?
We are working on finding new varieties that are high-yielding, pest- and drought-resistant.
Some three-four varieties are in the pipeline on the arabica side, as problems, including the white stem borer, are more prevalent in arabica. We had also introduced a variety of arabica coffee four years before. Robusta, on the other hand, is yielding in some places even after 80 years.
To replicate the success in Brazil here, growers have been seeking the Board’s help in research and tools. Is the Board working on that, too?
The mechanisation in Brazil cannot be correlated with that in India because in Brazil, there is no shade. Also, unlike the undulating terrain of the Western Ghats in India, the land in Brazil is plain.
The 20-ft high harvester they use in Brazil cannot be used in India, as coffee does not grow in the open here. Our plantations are different.
How is the Coffee Board encouraging more acreage for coffee?
We have seen production rising in non-traditional areas, but in traditional areas (Kerala, Karnataka and Tamil Nadu), it is not. Now, we have identified more areas where coffee production can be increased and are trying to include that in the 12th Plan.
With a depreciating rupee, is the board planning to increase exports?
There are schemes for exports already. But you can export more only if there is more production. We export 70 per cent of whatever is produced. But we offer incentives for areas to which much coffee doesn’t find its way, despite these being good markets for coffee. For instance, in the 11th Plan, we had five countries—the US, Canada, Australia, New Zealand and Japan. Now, in the next Plan, we will include other markets such as South Korea and two other countries. We are in discussions with other countries as well.
We are also trying to promote brand-building. So, we’ll give incentives to export value-added coffee in retail packs. The value-add maybe anything from roasting green beans or making instant coffee. Our instant coffee market is very robust. Almost all the value-added coffee that goes from India is instant coffee. Now, we’re the second-largest producer of instant coffee, after Brazil.
Any plan to introduce the Coffee Board’s own brands?
No, there is no such plan. All these plans were shelved 20 years ago and there are no plans to revive those. Now, it is a free market and we encourage private businesses. That is why we have introduced so many programmes to train manpower and tasters so that private people can run businesses.
Is the Coffee Board working on increasing awareness or building brand equity for Indian coffee?
We are, of course, working on positioning Indian coffee better in the international market. We participate in international trade fairs, advertise, get media coverage, arrange Indian coffee tasting sessions in international locations, invite roasters, make them taste Indian coffee, etc. All these efforts are already reaping rewards. Our average price of robusta is about 40 per cent higher than the international average. There is a very large international market for this premium Indian coffee.
source: http://www.business-standard.com / Business Standard / Home> Companies> Q & A> by Antonita Madonna / Bangalore – November 14th, 2013
When many people wake up in the morning, They head to the coffee pot.
But have you ever thought about where your coffee comes from?
Stephanie Price from Panhandle-Plains Historical Museum says, “coffee talk is about the history of coffee from the first cup that started in Ethiopia, to how it made it’s way to America and how it’s brewed today.”
Panhandle Plains Historical Museum, Palace Coffee, and Evocation Coffee teamed up to make coffee talk.
The owner of Palace Coffee tells us what the event means to him.
Patrick Burns says, “it’s not just how to make a cup of coffee, but really the whole story of coffee. The history of it from conception all the way to the farmers that we use and why we choose to use the coffee that we do.”
Stepanie Price says, “I can’t start my day some dayswithout a cup of coffee. So it’s a very important part of the economy of the world, but also the local economy here. Coffee is a big deal.”
From the very first cup of coffee, to cowboy coffee, no coffee been was left behind in this chat.
Patrick says cowboy coffee won the heart of the west, because to be able to caffeinate like a cowboy, you’ve got to love a cup of Joe.
He tells us, “cowboys would make their coffee strong so they could travel long distances and keep an eye on their herd.”
Around 50 people showed up sharing their love for lattes.
“How long coffee has been around. I think he said 800 AD.”
Burns tells us he doesn’t think the drink that thousands of folks in our area call necessary to start their day, will be going anyhwere anytime soon.
“500 billion cups of coffee are drank evey year here in the world and 25 millions people are tied directly to the coffee industry,” he says.
Coffee may have originated in Ethiopia, but Burns says about 50% of all coffee comes from Brazil.
We have one more fun fact for you.
Coffee beans are actually the pit of a berry, which makes them a fruit.
A cherry to be exact.
It is called a bean because of the resemblance to true beans.
source: http://www.myhighplains.com / MyHighPlains.com / Home / by Veronica Dietrich / November 09th, 2013
Kodaikanal, the princess of hill stations, is witnessing a steep decrease in the production of coffee beans lately, as area under cultivation has dwindled drastically.
Unlike Coorg district in Karnataka, where coffee is produced on large acres of land, planters’ representatives from Kodaikanal say that coffee planters here cultivate on a small scale.
Lack of promotion by the government, absence of coffee manufacturing factories and labour shortage are affecting the cultivation, planters say. A portion of the land is being diverted to real estate.
“Palani hills, which forms a part of Kodaikanal, is separated into three segments; upper, middle and lower. From the 1970s, coffee has been widely planted by farmers in the entire hills apart from upper Palani Hills.
When the mountain banana variety which was widely cultivated in these hills was attacked by a disease, they switched over to coffee plantation,” says 68-year-old Minoo Avari, president of Mya Palanimalai Farmers Association. Shekar Nagarajan, a coffee planter from lower Palani Hills said, “In a survey conducted by the government in the 1970s it was found that coffee was being grown on 14,000 acres of land. After that, no survey has been conducted .
At present, it is estimated that only 7,000 acres of land are being used for coffee plantation. The total production of coffee has also reduced by half. Initially we produced around 7,000 tonnes a year, but this has now come down to 3,500 tonnes,” Nagarajan said.
Though there have been several drawbacks, planters say their coffee beans won awards during an event which was held in Trieste, Italy, five years ago.
Planters claim that high altitude, fertile soil and organic farming methods are the key to the quality of the coffee they produce.
The coffee planters here also claim that the taste of coffee beans produced using organic method is on par with Colombian coffee, which is considered among the best in the world.
source: http://www.articles.timesofindia.indiatimes.com / The Times of India / Home> City> Chennai> Planters / by V. Devanathan, TNN / October 28th, 2013
As a part of its commitment to promote the Tea sector, the Tea Board of India, set up under Ministry of Commerce & Industry has extended its support to the 2nd Edition of “World Tea & Coffee Expo”™ (www.worldteacoffeeexpo.com), India’s only International trade fair dedicated to the Tea & Coffee sectors. The event is to be held at Bombay Exhibition Centre, Mumbai, India from Thursday 6th Feb 2014 to Saturday 8th Feb 2014. Tea Board of India has always been at the forefront of promoting Tea and has always taken proactive steps to address issues related to the Hot Drinks sector in India. The Tea Board of India decided to support this trade event since it shares a common goal with the show viz. promoting Hot Drinks in India. This niche expo is organized by the Mumbai headquartered Sentinel Exhibitions Asia P Ltd, a company engaged in managing and organizing trade events.
Says Mitesh M Kapadia, Director, Sentinel Exhibitions Asia P Ltd, “Hot drinks are witnessing positive growth since the last few years thanks to intensive marketing campaigns by players, launch of innovative products, the emergence of upscale Cafes offering both convenience, affordability and quality and the trend of these cafes becoming a meeting ground for young consumers.”
In addition to showcasing brands, products, machinery, retail Chains, accessories & technologies, WTCE 2014 will have Dedicated Innovations Display Zone, Interactive Demo areas (featuring Exotic Tea Tasting / Brewing sessions, Latte Art championships, Recipes and a lot more) as also Seminars & Conferences by Global Industry leaders & Policy makers to determine future trends in the Hot Beverage segment. The seminars will analyse prime factors influencing the sector and identify the sectors driving growth.
With an anticipated turnout of over 6000 Business Visitors including International buying delegations, WTCE 2014 promises to offer huge potential for franchising, marketing alliances, appointing Distributors, bulk orders, joint ventures and overall branding.
WTCE 2014 is also endorsed by a number of National & International Trade Bodies and visitors to the event will get exposure to national and international Brands, manufacturing and packaging technology, storage technology, Flavored Beverages, hi-tech vending machines, retails chains as well as a variety of products from importers and exporters of Tea & Coffee. For further details log onto www.worldteacoffeeexpo.com or contact Mr Mitesh, Director on +91 22 28625131 / +91 98205 03876 or on mitesh@sentinelexhibitionsasia.com
source: http://www.teanewsdirect.com / Tea News Direct / by K. Priti, Sentinel Public Relations P Ltd / November 06th, 2013
