Tata Tea Ltd

Merrill Lynch

Investor Conference

Presentation

February, 2006

Presentation Overview

Tata Tea Overview

Tea Market Overview

Brands – Overview & Initiatives

Plantations – Overview & Initiatives

Instant Tea Business

Coffee Business

Way Forward

Tata Tea - Overview

Tata Tea Overview

Among the top three players in the global tea market in terms of market share

Market capitalization in excess of US $ 1 billion Consolidated Revenues of over US $ 700 million 29% ownership by the Tata group; FII ownership 22

%; Domestic institutional share holders 15% Primarily a branded tea operation with presence in

over 40 countries with significant market share - Tata Tea in India - Tetley overseas Plantation ownership in India and Sri Lanka Includes Tata Coffee (Asia’s largest coffee producer)

The Tata Tea Group - Structure

Tata Tea Ltd

SBU’s Subsidiaries Associates

Brands

Plantations

Instant Tea

Tata Tea GB(Tetley)

Tata Coffee Ltd

Tata Tea Inc

Rallis India Ltd

Watawalla PlantationsSri Lanka

Exports

Tata Tetley

Consolidated Turnover 2004/05

Instant Tea3%

Coffee/Instant Coffee5%

Spices etc1%

Investment Income1%

Others1%

Bulk Tea 4%

Branded Tea85%

Bulk Tea Branded Tea Instant Tea Coffee/Instant Coffee Spices etc Investment Income Others

Segment wise turnover

Details 2003/04 2004/052005/06

9 Months*

Revenues 838 950 804

PBT (Before Exceptionals) 120 162 177

Margin % 14% 17% 22%

PBT (Post Exceptionals) 120 162 204

PAT 92 129 168

Margin % 11% 14% 21%

Rs in Crores

Performance Highlights – Tata Tea Standalone

* The Tea Industry is seasonal in nature and the nine months results do not necessarily reflect the pro-rata performance for the full year.

Details 2003/04 2004/052005/06

9 Months*

Revenues 3099 3077 2329

PBT (Before Exceptionals) 298 357 330

Margin % 10% 12% 14%

PBT (Post Exceptionals) 301 314 339

PAT 205 215 248

Margin % 7% 7% 11%

Rs in Crores

Performance Highlights – Tata Tea Consolidated

* The Tea Industry is seasonal in nature and the nine months results do not necessarily reflect the pro-rata performance for the full year.

Tea Market Overview

Top Five Tea Producing Countries

Sri Lanka9%

Kenya10%

Indonesia5%

China21%

India30%

Others25%

Top Five Tea Consuming Countries

India23%

China16%

Russia / CIS6%

U K 6%

Japan5%

Others44%

India is the largest tea producing and consuming country in the world.

Global Tea - A Snapshot

World Tea production in 2004 – 3200 mn kgs (approx)

Global Opportunity for ‘Tea’

• Growing Black tea markets define opportunity for geographical expansion of portfolio in overall Black tea although stagnancy is reported in world markets

- Potential sector revenue of Rs 48,000 Crs.• Top 30 ‘Tea’ markets account for 90% of the market volume in

the packaged black tea segment• Tata Tea & Tetley present in only 35% of this market – with a

combined revenue of Rs 3000 Crs.• Green / Fruits & Herbal / Flavours / Specialty tea account for

49% value of all global packaged tea revenues !

- Potential sector revenue of Rs 48,000 Crs. • RTD operates in a beverage arena that is at Rs 128,000 Crs.

SIGNIFICANT POTENTIAL FOR ADDRESS OF REVENUE GROWTH

Brands

India - Overview

• 2nd largest player after Hindustan Lever• Value market share of 21.6% (A C Nielson)• Brand presence across segments and price

points represented by Tata Tea, Agni, Chakra, Gemini and Tetley

• Super brand ranking for Tata Tea Premium• Distribution network connecting over 2200

stockists and 1.5 mn retailers

India - Initiatives

Existing brands restaged in India Launch of Kanan Devan Strong leads to a

major jump in market share Sania Mirza drives double digit growth of

Tata Tea Tata Gold captures 2% of market share

within 14 months of launch Restage of Tata Tea Agni

Launch of specialty teas under the Tetley brand – “new face of innovation”

Overseas - Overview

GB–Tetley continues to outperform major competitors with brand leadership at 27%; Growth in specialty teas segments

Canada –Specialty tea market leader at 23%; black tea at 44%

Australia – Growing market share of tea bags at 21% USA –USA share up year on year. Value share of

black tea 10%. France – Growing market share of tea bags at 11% Poland, Portugal, Spain, Jamaica & Baltic’s improved

performance during the period Russia, Pakistan, Bangladesh & South Africa - new

market entry shows promising results

Overseas - Initiatives

Acquisition of Good Earth in the USA Brands

– Fruit & herbals new launches in various geographies across the globe

– Test marketing of iced teas in UK– Increased market share in developing

markets. Success in opening up of new markets like Bangladesh, Pakistan, South Africa and Russia.

Redefining Innovation

Plantations

Tata Tea Plantations Restructuring

Pre Restructuring

TTL

NIPO SIPO

Est: 24 26

Emp: 31K 18K

TEA

Current Status

TTL

NIPO SIPO KDHP TCL

24 2 17 6

31K 2K

TEA

Alternative Crops

100%

Objective

TTL

Plantation

Business

51%19%100%

Minority Interest

Tourism

Alternative Crop

TEA

Plantation Restructure - rationale

Company focused on brand growth

Management skills different for plantation and brands

Global Sourcing opportunities

Complete ownership not essential

Some long term supply arrangements needed

Considerable scope to enhance plantation value with focus

Plantation Restructuring Initiatives

In South India

17 estates recently transferred to a new company formed under the EBO model : Majority ownership of employees including over 10000

Workers 19% ownership with TTL with special rights

6 estates sold to a subsidiary Intention to exploit tourism potential in balance two estates

In North India

Options for similar reconstruction being evaluated for North India Alternative crops and usage of land to enhance value and returns

20

30

40

50

60

70

80

90

0 1 2 3 4 5 6

Citronella

Gestation Period (Years)

GrossMargin

(%)

Relative Size of Revenue (per hectare)

Animal

Innovative

Fishery

High demand

High revenue and good returns

Returns can be enhanced by combining with duckery and piggery

Dairy

Good demand

High revenue and good returns

Tea and nature tourism

Complementary to tea

Agriculture – Traditional and Non Traditional

An economic evaluation revealed that there are several economically viable alternate models

Agriculture - Traditional Vegetables: Chilly. Tomato Fruits: Banana, Pineapple,

Papaya Spices: Ginger, Turmeric

Agriculture – Non Traditional Medicinal and herbal Floriculture

Shortlist

Patchouli

Periwinkle

Aracenut

BananaPepper

Lemon

Orange

Chilly

Pine-apple

Ginger

Papaya

Turmeric

Tomato

Chilly

Glory Lily

Low gestation, revenue higher than tea

High gestation, revenue higher than tea

Revenue lower than tea

Welfare activities

Progressive shift of existing welfare activities in South India to an independent trust

Upgradation of Schools and Hospitals which offer potential

Dedicated senior managerial responsibility- Director projects

Upgradation and outsourcing possibilities for select North India institutions

Instant Tea & Coffee

Instant Tea

Instant tea plant in Munnar with 4.5 mn lb capacity supplying instant teas across the world with specific emphasis on Tata Tea Inc, USA

Products from Tata Tea Inc’s packing facility at Florida present in many famous labels (Kraft, Snapple)

Global turnover of instant tea at Rs 94- 100 crores

Group exploring growth opportunities

Tata Coffee’s Businesses

TCL Businesses

Pepper

Coffee

Plantations

Timber

Soluble Coffee

Agglomerated

Spray Dried

Freeze Dried(In Progress)

Marketing

Brands

Vending

TCL Coffee Business - Coffee Plantations

4% share of Indian Production

Leader in Quality: International Recognitions Best Robusta in the World,2004 Selected for supply of Premium Coffee to leading

coffee chains – Starbuck,Illy Café Series of “ Flavor of India-Fine Cup Awards

Expansion plans of freeze dried coffee

Cost consciousness Rationalized employee strength Stringent cost controls

Details 2003/04 2004/052005/06

9 Months

Coffee Sales (Lakh Kgs) 132 110 73

Turnover 185 207 130

PBT (Before Exceptionals) 23 30 18

PBT (Post Exceptionals) 22 34 18

PAT 17 30 14

Dividend % 50% 65% -

Rs in Crores

Tata Coffee

Way Forward

Brands Prioritize growth agenda across the globe and

meet growth challenge through: Organic growth Appropriate strategic partnerships Acquisitions

Sustain growth in key markets through Value added segments e.g. Fruit & Herbal

Launches Consumer driven insights

Utilize distribution networks to leverage product/category extensions

Way ForwardPlantations Enhance sustainability of model Discharge of social responsibility Improve returns to Tata Tea’s shareholders

Drive Cost Rationalization Supply chain Overheads

Instant Tea Explore growth opportunities

Coffee Initial focus on B2B model with product expansion in instant

and freeze dried coffee Selective forays into out of home and consumer segments

Thank You