What was the rational for closing down the tea business and diversifying into gelatin business?
In June 2000, we sold our Tea Division, as per the management philosophy to exit from mature business and concentrate only on globally competitive, high technology, high growth businesses having strong entry barriers and high value addition. Our presence in the gelatin business can be justified by attractive margins, the growth potential as well as the company’s ability to leverage the Indian cost advantage. The demand growth for gelatin is 15% per annum in India and 3% globally.
