Tata Coffee Case Study

EXECUTIVE SUMMARY

Coffee production in India is dominated in the hill tracts of South Indian states, with the state of Karnataka accounting to 53% followed by Kerala 28% and Tamil Nadu 11% of production of 8,200 tonnes. Indian coffee is the finest coffee grown in the shade rather than direct sunlight anywhere in the world. There are approximate 2,50,000 coffee growers in India; 98% of them are small growers. As of 2009, production of coffee in India was only about 4.5% to 4.6% of the total production in the world. Almost 80% of the country 's coffee production is exported. Of that which is exported, 70% bound for Russian federation, Germany, Spain, United States, Belgium, France, Slovenia, Japan, Netherlands and Greece, and Italy accounts for

• To examine the impact of profitability on shareholders wealth in TCL

1.5 Scope of the study

The study limited to impact of leverages on profitability at Tata Coffee Ltd., Pollibetta. The present study examines the relationship between Leverages, EBIT, EPS and Profitability. The study employed Leverage method to estimate the impact of debt level on profitability. Debt is used by many companies to leverage their capital and profit. However, the debt is not a only factors that effect to leverage capital and profit.

1.6 Methodology adopted

Research Design

The research design used here is descriptive in nature. It constitutes the blueprint for the collection, measurement and scrutiny of data. A research design is a basic plan, which helps and guides the data collection and analysis of the phases of the project. It is a framework, which specifies the type of information to collect the source of data collection procedure.

Data Collection:

Primary Data

The needful inputs and insights obtained by directly interacting with the Internal and External

In the year 1943’s, Consolidated Coffee Estates Ltd., Edinburgh has became a full-fledged Indian company headquartered in Pollibetta. In the same year, the shares in Consolidated Coffee Estates Limited (CCE) were offered to the general public through the prospectus, the parent, Edinburgh Company, being allotted the major share as a consideration for transfer of its estates .Very shortly thereafter, during the early part of the time of 1950–1960 decade, the Edinburgh Company has sold all its shareholdings to the Indian public, to relinquishing its controlling interest in CCE and becoming one of the first sterling plantation company to become an Indian company. During the 1966–67, the Volkart properties in India, which includes two curing works, four estates & an export division, merged, and the company was renamed as the erstwhile Consolidated Coffee Limited (CCL). Tata Tea Limited, in a trend setting and transparent open offer to its resident shareholders, it acquired a controlling interest in CCL during the 1991-1992’s. CCL has became the single largest coffee plantation company in Asia with its estates located in Kodagu, Chikmagalur, & Hassan districts of Karnataka. It was a historic move in September 1999, M/s Asian Coffee