With an eye over Chinese and Far-East markets, Tata Tea announced on Tuesday its joint venture with Zhejiang Tea Import and Eexport Company, which accounts for nearly 25 per cent of export volume of China.

The two companies would set up a joint venture entity at the Economic Development Zone of Anji County in Zhejiang at an estimated outlay of Rs 70 crore (Rs 700 million.

Tata Tea would own 70 per cent of the registered capital of the joint venture company and plans to fund the project through a mix of equity capital and borrowings, Tata Tea said in a communique to the Bombay Stock Exchange.

The joint venture company would manufacture and market green tea polyphenols, green tea extracts, cold and hot water soluble instant tea, liquid tea concentrates and other value added tea beverage products.

Recently, Tata Tea acquired two Polish brands Vitax and Flosana from Premium Foods for an undisclosed amount, a move after which its brand Tetley caught hold of the number two position in the Polish tea market.

Zhejiang Tea is engaged in trading of green, black and speciality teas and has clients in over 60 countries in Asia, Africa, North America, Europe, and Oceania. Tata Tea's shares were trading at Rs 764, up 0.23 per cent on the BSE.