Mumbai, July 27 - India's Tata Tea Ltd., the world's second-largest branded tea company, will restructure its plantations in northern India sooner than expected, a senior company official said late on Wednesday.
The company, which has divested control of most of its plantations in southern India to focus on its branded tea business, had earlier said it would consider various options for its plantations in the north to increase profitability.
"We are now at a point where we can say that those plans will be in place in the near future," Managing Director Percy Siganporia told reporters.
Already, options such as alternate cropping, including floriculture and fisheries are proving to be profitable, he said.
Tata Tea, which owns the Tetley brand, on Wednesday posted a 2.6 percent rise in quarterly net profit to 445.6 million rupees ($9.5 million).
While the domestic market for tea consumption is forecast to grow at about 3-4 percent, Tata Tea's brands are growing quicker.
"Our premium brands have the ability to take price increases and not feel the pressure," Siganporia said.
Growing exports and improving shares in overseas markets like the United States, Canada and France are also helping, he said. ($1 = 46.8 rupees)