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http://www.hindustantimes.com/news/181_1728019,0002.htm

Tata Coffee acquires US company for $220 mn

June 25, 2006

The Tata Group on Sunday announced the acquisition of a US-based company for $220 million.

"Tata Coffee has acquired the US-based Eight O'Clock Company," a group spokesperson said.

The company informed the Bombay Stock Exchange that it has signed a definitive agreement to acquire the Eight 0'Clock Coffee Company (EOC), USA, from Gryphon Investors for a total acquisition price of $220 million.

EOC has over 100 years of brand history and retail coffee experience in the US and is a leading player in the branded whole bean segment and a category leader in the value gourmet segment in the US retail market.

Within the broad US retail coffee category, EOC is the third largest brand by volume behind Folgers and Maxwell House, the statement said.

EOC had net sales of $109 million and EBITDA of $27 million in 2005.

The acquisition provides a sizeable entry platform and an established brand to Tata Coffee in the $21 billion US coffee market, the company said.


I found this article via Ivan on the Starbucks board, hopefully he doesn't mind me posting it here. ;)

The overall Tata Corporation is an amazing company, all of their segments are very well run as far as I can see. At the end of the above article, it says this is the latest move from Tata Coffee to become the leading player in the global coffee industry. I think they are a company that can become a world leader with coffee, but the question is whether or not they can successfully manage companies all over the world. Again, I think if any company can do it it is Tata Coffee. It will be interesting to see how Indian companies as a whole expand into international markets. For instance, Tata Motors owns 21% of Spanish bus and coach manufacturer Hispano Carrocera. Tata Motors also bought a South Korean truck manufacturer, Daewoo Commercial Vehicle, in 2004. You can expand either by buying international companies or expanding your own brand into other countries. It really depends on how cooperative countries are, because many countries don't like having foreign companies and brands coming into to their country. It also depends a large amount on whether or not your product is unique enough to expand into many different markets and conditions.

As always, it will be interesting to watch.

Best,

David K
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>>>I found this article via Ivan on the SBUX board, hopefully he doesn't mind me posting it here...>>>

Not at all. Careful, though on the amount of an article you quote. I am not an expert on it, but the Fool frowns on extensive use of other publishers' copyrighted material:

Contributors may summarize articles and other writings and post an occasional sentence or two, but not the entire piece. Articles copied into our boards in their entirety will be removed. Summarizing is giving a brief outline of the article in your own words, or the quoting of brief passages in combination with your own relevant thoughts...

http://www.fool.com/help/index.htm?display=community04

Twitty is the expert of this and could offer suggestions.

Back to Tata: Tata is quite an interesting company. Others may want to take a look at the variety of industries that they are in:

http://www.tata.com/0_investor_desk/index.htm

agricultural appliances | agrochemicals | books | cellular products and services | ceramics | charter flights | coffee | cooling appliances | credit card | fertilisers | financial services | food products | garments and home products | holiday homes | home appliances | hotels | housing | insurance | jewellery | leather products | multi-utility vehicles | passenger cars | tea | telecommunications | watches, clocks

agricultural inputs | automotive | chemicals | communications | consultancy | electronics | energy | engineering | financial services | food products | hospitality | information technology | infrastructure | materials | publishing | trading

Good heavens, that's a stable.

Try and figure out the value of this stock! You think G.E. is hard to get your need-an-evaluation hands around...

Ivan


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wow!! Following Ivan's link and poking around at tata.com quickly leads to the feeling of being lost in a labyrinth! In fact, beware as you read ahead, because my confusion is obviously reflected in a lack of a clear direction in this post.

I'm curious. Say I'm becoming very interested in Tata Tea. Or Tata Coffee for that matter, which seems to be a subsidiary of Tata Tea. Tata.com tells me that Tata is made up of 32 publicly traded companies, and, according to Yahoo!, there are 70 listings on various stock exhanges, but only one, TTM (Tata Motors) on the NYSE. Therefore, TTM is the only stock I seem to be able to trade in my TDameritrade account. And certainly TTM has been on my radar since you mentioned it as a current good value, so it's good to see it as an option on ameritrade.

(As an aside, interesting ... invest in GE and you take the winners and the losers .... seems you could cherry pick among Tata??)

How would I go about investing in Tata the conglomerate? or Tata Tea for that matter?

David, I guess, too, I'm backing into the question of how you found and chose IFN for your investment $$. I think I've tracked down Blackstone.com as the manager of IFN, and am reading about IFN there now. But I'm curious as to your narrowing-down process to get to IFN in the first place?

Pardon me if this has been asked before ... if it has, just direct me to do a search of the board. ;)

Best, Robin
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Hi Robin,

How would I go about investing in Tata the conglomerate? or Tata Tea for that matter?

Tata Motors is the only Tata ADR that is traded on an American exchange (ADRs are foreign companies that trade on a U.S. exchange). Tata Motors needed extra funding for expansion, so they went public in America as well as in India. The only way you could individually invest in Tata companies is by trading directly on the Indian exchanges, but as far as I know no U.S. brokerage offers that service. All the different Tata services are traded on Indian exchanges, but as I just said, Tata Motors needed the extra funding so they went public in the U.S. as well. You might be able to find more information on Yahoo! India Finance: http://in.finance.yahoo.com

David, I guess, too, I'm backing into the question of how you found and chose IFN for your investment $$. I think I've tracked down Blackstone.com as the manager of IFN, and am reading about IFN there now. But I'm curious as to your narrowing-down process to get to IFN in the first place?

I actually became interested in India via my Mom, who asked me if I'd find some Indian companies, or just some way to invest in India. I was drawn to IFN after researching it and going deeper into the fund. Here is the first write-up I did on IFN:

http://boards.fool.com/Message.asp?mid=23853294

And this thread covers a lot of ground on IFN and India:

http://boards.fool.com/Message.asp?mid=24010308&sort=whole

In short, I like IFN because it owns the well-known, stable Indian companies (Several of my family members have traveled in India recently and told me the companies with the best reputation, most popular, etc., and IFN owns a lot of those companies). In the long-term I think that the India Fund will be a great investment, but as it is with all investments, there will be many fluctuations. I highly encourage you to look at IFN's latest SEC Filing, it discloses all the current companies they are invested in and provides a lot of other information on the fund:

http://www.sec.gov/Archives/edgar/data/917100/000112528206002973/b413389_nq.htm

This Fool article also gives some good information on IFN and India:

http://www.fool.com/news/commentary/2006/commentary06061616.htm

I think IFN offers the lowest risk investment opportunity for India, for a higher risk/reward ratio you can invest in what few Indian ADRs are out there (Last I checked there were only 20 or so).

Toward the bottom of this post you will find what I recently wrote on IFN after I purchased it (Basically it is some quick notes on why I bought it, the risks, what to look for, etc.):

http://boards.fool.com/Message.asp?mid=24014919

I hoped this helped you out, but don't hesitate to ask any more questions you may have!

Best,

David K
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Thanks David! That was just the right amount of information to get me started without being completely overwhelming.

I've read everything through once now (well, except the SEC filing, I admit) but I suspect that I'll need to read it at least once more before it sinks in, especially the parts referring to closed funds. I'm tempted by IFN. I marked the board as one of my faves. I am attracted by the diversification offered and the dividend. And it means a lot to me that you can vouch (via family members) that the companies chosen by the fund are top notch. It also seems like a better choice than IIF or MINDX. I suppose my next step should be to spend more time at in.finance.yahoo and get a feel for Indian companies, especially if they appear on that SEC filing.

My shopping cart is filling up. :) I intend to keep reading at this point. But I'm hoping if I decide to add IFN the market will cooperate and present a good price.

Thanks for putting everything into one post. I appreciate the effort that took, because you could've said, "do a search," but this was so much nicer and more helpful! I am sure I will refer back to it often as I keep reading.

Best,
Robin
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