Indian non-alcoholic beverages company Tata Global Beverages (TGBL) has announced plans to sell its stake in its Chinese joint venture (JV), Zhejiang Tata Tea Extraction (ZTTECL).

The transaction valued at for Rs330m ($4.83m) will be subject to necessary approvals, completion of negotiations, definitive agreements and satisfaction of conditions precedent.

Z Business quoted TGBL former chairman Cyrus Mistry saying in August last year: "We are looking at restructuring the business there. In what way this will be done, that has to be looked into."

The company planned several options for its China operations at that time, including restructuring or sale owing to several challenges faced in that country.

The company said in a filing to NSE that further details on the transaction would be intimated as required under Regulation 30 of the SEBI, Regulations, 2015, once the deal closes.

ZTTECL is a 70:30 JV with TGBL holding 70% stake and China’s Zhejiang Tea Group (ZTG) holding 30%.

Signed in 2007 initially, the JV was formed to set-up a manufacturing facility for green instant tea, tea polyphenols, and concentrates, as well as other similar products.

ZTG manufactures tea and related products, with various business verticals ranging from tea, garments, textiles to hardware.

Recently, the company acquired a chain of 120 stores across China offering premium teas.

Image: Packages of Tata Tea in a store shelf. Photo: courtesy of Arne Hückelheim/Wikipedia.