Tata Tea

The Employee Buy out: Case of Tata Tea Dr Deepika M G, Faculty, Icfai Business School, Bangalore, India ABSTRACT The bind discusses about the Employee Buy Out business mould choose by Tatas on their exit from plantation business in their southern plantation operations in Munnar district of Kerala in India. Tata Tea had sold off 17 afternoon tea estates in southern India to the company formed by its employees named Kanan Devan Hills Plantation federation Pvt. Ltd.(KDHPCL). In sharp contrast to the situation in the tea industry experiencing closures affecting thousands of employees, KDHPCL with 13,000 employees could not only recover inwardly a year the loss of $ 24 million delineate up by Tata Tea, but could also register a post tax surplus of $ 50,000 as on adjoin 31st 2006. However, when Tata Tea went onto implement a similar model in the conjugation Indian Plantation Operations, it met with considerable resistance. The denomination discusses about the crisis that was facing the tea industry in India, the part played by Tatas in the formation of the KDHPCL and the challenges faced by the employees of South Indian Plantation Operations in accomplishing this laughable business model.

It also critically reviews the factors that are essential for the achiever of Employee Buy Out, by enumerating the factors that led to the success of EBO in southern operation of Tatas and its failure in their northern operations. INTRODUCTION In February 2007, Tata Tea, an INR 3500 crore beverages company, trenchant to divest a major portion of its shares in its North Indian Plantation Operation (NIPO) to a group of investors and its avouch employee co-operatives. To be called as Amalgamated Plantations Pvt. Ltd. (APPL), it would cover a gigantic portion of tea estates of 24,000 hectares in Assam and West Bengal. Retaining only 20% of its stake in the new company, the remaining was to be bought by Infrastructure Leasing and Financial Services (IL&FS), World Bank Funded supranational Finance Corporation (IFC),... If you want to get a wide-cut essay, order it on our website: Orderessay

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