Home > Business > Reuters > Report

Tata's Tetley Tea enters Pakistan market

May 14, 2003 17:42 IST

Pakistan's Lakson group has set up a joint venture with a British subsidiary of India's largest tea producer -- the first such partnership between companies of the two South Asian nuclear rivals.

Lakson group signed a partnership deal for a tea blending plant with UK-based Tetley Tea -- owned by leading Indian group Tata Tea -- a few months ago, a senior Lakson official told Reuters.

"The two groups plan to invest around Rs 15 to Rs 20 crore ($2.5 to $3.5 million)," he said, but asked not to be named.

The plant, which is near completion, has been set up in the Hub region of southwestern Baluchistan province and will use mainly Sri Lankan, Kenyan and Indian tea, he said.

"Production is expected to start in the next few months," he said, but declined to elaborate.

For years, India and Pakistan have avoided business links because of thorny political relations between the two countries, which have fought three wars since their independence from Britain in 1947.

In recent weeks, tensions between the nuclear-armed neighbours have started to thaw.

On Tuesday, Pakistani Prime Minister Zafarullah Khan Jamali said that it was time for Pakistan and India to exchange political rivalry for economic cooperation.

There is currently no overland trade between the neighbours and trade in many goods is banned. Official bilateral trade via third countries was just $204 million in the year to March 2002.

Pakistan is the world's third largest tea importer, buying tea mainly from Kenya, Bangladesh, Indonesia and China. Indian tea makes its way into Pakistan mainly through smuggling.

The Lakson group, with interests in tobacco and consumer goods, would deal with Tetley Tea and not directly with Tata Tea company.

"Pakistan is a huge market and we hope to make a place for the Tetley Tea soon," the official said.


Article Tools
Email this article
Print this article
Write us a letter


Related Stories


Indo-Pak trade relies on peace



People Who Read This Also Read


LIC to launch credit card

National power policy in 6 mths

Redress grievances, says Sebi






© Copyright 2003 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.




Share your comments


 What do you think about the story?




Read what others have to say:


Number of User Comments: 2




Sub: tata's tea in pak mkt

Its a very good sign that pak economy is also accepting the truth of the globalisation and isa ready to go for the trade with ...


Posted by prashantgupta





Sub: magazine show

It's very good sign for both countries to become a joint bussines point of view,sir there is an option for your marketing department I could'nt ...


Posted by Asif Nadiem




Disclaimer







Copyright © 2004 rediff.com India Limited. All Rights Reserved.