HISTORY:

Tata Coffee Ltd (formerly Consolidated Coffee), a subsidiary of Tata Tea and one of Asia's largest plantation company cultivates coffee pepper, oranges, paddy, cardamom and other plantation and agricultural products. Tata Coffee's past was rooted in 1922 when two companies M/s Coorg Co. Ltd., London and M/s Pollibetta Coffee Estates Co. Ltd., London both managed by M/s Matheson & Co., combined to form Consolidated Coffee Estates Ltd., Edinburgh. In 1943, Consolidated Coffee Estates Ltd., Edinburgh became a full fledged Indian company headquartered in Pollibeta. In the same year, the shares in Consolidated Coffee Estates Limited (CCE) were offered to the general public through a prospectus, with the parent, Edinburgh Company, being allotted a major share as a consideration for transfer of its estates. Shortly thereafter, during the early part of the 1950-1960 decade, the Edinburgh Company sold all its shareholdings to the Indian public, relinquishing its controlling interest in CCE and becoming one of the first sterling plantation companies to become an Indian company. During 1966-67, Volkart properties in India, which included four estates, two curing works and an export division, merged with CCE, and the company was renamed as the erstwhile Consolidated Coffee Limited (CCL). Tata Tea Limited, in a trend setting and transparent open offer to the resident shareholders, acquired a controlling interest in CCL during 1991-1992. CCL became the single largest coffee plantation company in Asia with its estates located in Kodagu, Hassan, and Chikmagalur districts of Karnataka. In a historic move in September 1999, M/s Asian Coffee Ltd., M/s Veerarajendra Estates Ltd., and M/s Charagni Ltd., merged with CCL, and became the single largest integrated plantation company in the world. In 2000, the company was renamed as 'Tata Coffee Limited'. The last decade of 20th Century witnessed the company actively engaged in branded/ packaged coffee business. It launched Coorg Coffee, a 100% pure coffee, in Karnataka and neighboring states, in Apr.'93. Further it has also launched instant coffee bags for the north-Indian market which is not familiar with south-Indian filtered coffee. The company has the advantage of being able to use Tata Tea's distribution system. Its main advantage lies in the fact that it is a plantation company and is thus able to hold the price line if it so desires, unlike multinationals which pay market prices for their raw material.

During 2004-2005, the process relating to acquisition of Highhill Coffee India Private Ltd was completed and consequently Highhill Coffee India Private Ltd became a Whollyowned subsidiary of Tata Coffee with effect from 23.11.2004. The company divested its entire stake in Barista Coffee Company Ltd, to the Sterling Group, during the under review. During 2005-2006, the company acquired 5 Tea estates and 1 Coffee estates located in the Anamallais region in Tamil Nadu and Kerala from Tata Tea Ltd. The Instant Coffee Facility at Theni, Tamil Nadu acquired by the company has started normal operations during the year. During 2006-07, the new Freeze Dried Coffee Plant was inaugurated in Theni, Tamil Nadu in March, 2007. This is a state-of-the-art, Plant supplied by E&E Verfahrenstechnik GmbH, Germany and one of the only three plants in the world with a seven belt dryer. The Division is also exploring the possibility of launching a Freeze Dried Coffee brand in Russia and CIS Countries. The Company is proposing to set up a 3600 MT p.a soluble coffee plant in Uganda under a Joint Venture with Tata Uganda Ltd., Kampala, Uganda. During the year the Company entered into a Joint Venture arrangement with Beeyu Overseas Ltd., for the marketing and sale of its instant coffee products in the international Market and in this connection acquired a 51% equity stake in a Joint Venture Company viz. 'Alliance Coffee Limited' consequent to which Alliance has become a subsidiary of the Company. The Company signed a Definitive Agreement to acquire Eight 0' Clock Coffee Company ('EOC'), U.S.A. from Gryphon Investors for a total acquisition price of US$ 220 million. During the year, Alliance Coffee Limited, Consolidated Coffee Inc, USA, Eight O' Clock Holdings Inc, USA and Eight O' Clock Coffee Company, USA became subsidiaries of the Company. Eight 0' Clock Holdings Inc was merged with Eight O' Clock Coffee Company in April, 2007. The company owns 19 coffee estates in Southern India. The estates are spread across the districts of Coorg, Chickmaglur and Hassan in Karnataka and Valparai district in Tamil Nadu. Tata Coffee is the largest integrated coffee plantation company in the world.

AREAS OF BUSINESS:
Tata Coffee is arguably the largest integrated coffee plantation company in the world. Tata Coffee has a hand in every aspect of the coffee making process, with business activities ranging from growing and curing of coffee and tea to the manufacture and marketing of value-added coffee products. Tata Coffee grows coffee on its own estates, processes the beans, exports green coffee, manufactures and exports Instant Coffee and retails coffee with its own branding in the domestic market. Plantations: Coffee Tata Coffee owns 19 coffee estates located in ideal coffee growing highlands of Southern India, with fertile soils and invigorating climate. Spread over 8037 hectares in Coorg, Chickmaglur and Hassan districts of Karnataka and in Valparai district of Tamil Nadu, Tata Coffee produces 10,000 metric tonnes of natural shade grown Arabica and Robusta coffees, in both washed and unwashed forms. These estates are located at various altitudes, and the coffee produced possess distinct cup characteristics. Tata Coffee's uniqueness lies in its ability to produce large quantities of estate specific, strain specific, speciality and premium coffee, while maintaining a strict consistency in quality. Apart from coffee and tea, pepper and cardamom are also grown as inter crops on its estates. Monsoon Malabar, Mysore Nugget Extra Bold, and Robusta Kappi Royale are three of the prominent speciality grades of Indian coffee it grows and processes apart from estate specific coffees. Mr. Bean, a quality product made from the finest coffee beans at its plantation, was recently introduced. Coffee curing The company has the largest curing facility in the country at Kushal nagar with an installed capacity of 10,000mt. The coffee is cured in the company's state-of-the-art curing facility at Kushalnagar in Kodagu district. It has been awarded the prestigious certificate of approval for quality ISO-9002 through certification by Bureau Veritas Quality International, Netherlands. This unit is the first curing industry in India to receive ISO-9002 certification. Tea The company also owns six tea estates which spans 4755 hectares in Coorg and Chickmagalur districts of Karnataka and Annamalais district of TN and produce 6.5 million kilograms of tea.

Estate supplies Tata Coffee also deals in plantation requirements such as fertilisers and chemicals, estate implements, and tyres and tubes through it's Estate Supplies Division Instant Coffee Tata Coffee also has the capacity to produce 5000 metric tonnes of Instant Coffee per annum, for which it has a sizable export market. International Tata Caf, Mysore Gold and Malabar are the popular Instant Coffee brands which are exported Timber Tata Cofee has abundant reserves of timber, which is grown for shade. The company's timber resources on its estates include Rosewood, Silver Oak, and other softwood trees. As part of its plans to optimise the utilisation of the company's captive timber resources, the company has entered into 'Timber Value-Addition' industry by getting its Silver Oak timber converted into plywood of different types and bearing the brand name 'Conswood'. Locations: Plantations The Coorg district of Karnataka, India, is one of the main coffee-growing regions in India and the main plantation operations of Tata Coffee are in Pollibetta, in the Southern part of Coorg. The company owns 19 coffee estates and 7 tea estates located in the districts of Coorg, Hassan and Chickmagalur, including one recently acquired coffee estate and five tea gardens in the Annamallais region of Tamil Nadu. The coffee grown on these estates are naturally grown, in a mixed shade of two tiers. The plantation's head office is at Pollibetta, Coorg, Karnataka. Instant Coffee Tata Coffee has two Instant Coffee manufacturing facilities, one at Toopran near Hyderabad and the other at Theni near Madurai in Tamil Nadu. The combined installed capacity of these two plants is 6500 metric tonnes.

INSTANT COFFEE PRODUCTS:

Tata Caf Tata Caf is a 100 per cent pure Instant Coffee. Launched in 1996, it offers a cup of pure instant coffee with a 'coffee bush to cup' experience. Innovative marketing and endorsements by popular film artists like Sridevi and Renuka Sahane and ace cricketer Saurav Ganguly, have given this product a larger than life image.

Tata Caf International International Tata Cafe consists of an Arabica Robusta blend that combines the fine aroma of Arabica with the strong taste of Robusta. It appeals to buyers who want an instant kick in their coffee. The brand had a strong following in Russia and CIS countries and continues to sell there.

Tata Kaapi Tata Kaapi is a mixture of instant coffee and chicory and is the third player in the instant coffee-chicory segment. This brand attempts to strike a balance between tradition and modernity. A blend of tradition and lifestyle imagery have been used to project this brand. Innovative marketing has been the hallmark of this brand, with everything larger than life and beyond ordinary. The response to this product has been positive with a heartening response from the most discerning coffee state of them all - Tamil Nadu. This brand has also entered the Guinness Book of World Records with the world's largest coffee mug. Mysore Gold Mysore Gold is one of the most popular spray dried coffee brands in Russia and Ukraine. The brand has a long heritage of more than 15 years and was one of the first Indian brands to be introduced in Russia. True to its name Mysore Gold is one of the purest Indian blends and hence a gold standard. Many consumers in Russia are nostalgic about the brand and continue to remain loyal to the brand.

DOMESTIC OPERATIONS:
Retail MR. BEAN Mr. Bean, characterised by its distinct flavour and unique taste, is a blend of 53 per cent coffee and 43 per cent chicory. With an easily identifiable mnemonic, the company has positioned the brand to accentuate the grower advantage. Mr. Bean emblemises Tata Coffee's dedication and untiring commitment to quality, where the company believes that the coffee bean makes all the difference to the taste. The brand is competitively priced and is available in five pack sizes of 500 grams, 200 grams, 100 and 50 grams.

Coffee & Tea Vending Tata Cafe Jiffy Vending machines started operations in the year 1996 and has grown at a frantic pace. Premix based beverages are sold through a network of over 8000 Tata Caf Jiffy vending machines spread across 14 states and 56 cities and towns across the country, through a network of franchisees and this number is going to accelerate.These machines cater to out of home consumption of hot beverages in a fast, convenient and hygenic mode. Our vision for this promising business is 'To place a cup of value added coffee ar arms length in the market place, withing offices and in outdoor markets.

Institutional Business Service The business focuses on supplies to key institutions for their coffee requirements. Tata Coffee offers brands such as Tata Caf, a 100 pure instant coffee, Tata Kaapi a chicory mixed instant coffee, Coorg Double Roast a chicory mixed conventional coffee, French Press and Roasted Coffee beans . The business focuses on supplying fresh and high quality coffees in customised blends and packaging with a special focus on logistics and price. Key customers include reputed customers from airlines, hotel chains, caf chains and defence establishments. 6

MR. BEAN Junction Mr. Bean Junction, a unique first-of-its-kind coffee outlet, was launched in December 2005 where a customer can walk in and choose from a variety of coffee bean blends, sticking to the traditional type of blend just the way he or she likes it, or choosing something different to assuage the sameness, all freshly ground in front of the customer. A freshly brewed coffee, where different types are available from a filter coffee to a cappuccino, is a must have for anyone who wants to put their feet up, lighten their mood or even while they are waiting for their coffee to get ground. In fact, they even have an option of tasting the blends they have chosen, all for only Rs10. Branded coffee is also available in a polypack form. Mr. Bean Junction offers everything under one roof: fresh and ground, freshly brewed coffee and branded coffee, and the experience in this warm and enriching ambience is value for money. A database stores the preference of the customers, and ensures that their favourite blend is all ready for them as soon as they walk into the outlet. All these experiences constitutes the USP of this outlet. Roast & Ground Coorg Pure: A 100 per cent pure filter coffee, packed in triple laminate polypacks which safeguard the product's aroma and freshness. Available in Bangalore and Chennai. Coorg Double Roast: A blend of filter coffee (53 per cent) and chicory (47 per cent), this is India's second largest filter coffee-chicory brand. Available in the states of Andhra Pradesh, Kerala, Karnataka and Tamil Nadu.

Others:
Pepper Pepper is cultivated as an intercrop with coffee, where the pepper vines grow on the shade trees planted to provide natural shade to coffee. Being a large grower, Tata Coffee has the infrastructure for value addition, mechanised de-corning and hygienic processing. Tata Coffee Limited has 13.5 lakh tree standards with pepper with an annual production of 1,000 metric tonnes. 25 per cent of the produce is converted into value addition like white pepper, dehydrated green pepper, and pepper in brine. Centralised grading and cleaning facilities are mechanised, backed with a state of art Quality Control Laboratory. A small quantity of pepper is also grown organically to cater to niche markets. Black pepper 11.75 size 11.5 size 10.0 size Lights size Cardamom Cardamom, popularly known as the 'queen of spices', originated in the forests of Western Ghats in Southern India where it grew wildly. The seeds of this delicate spice are warm and aromatic. India is one of the largest producer and exporter of cardamom around the world. The total area under cardamom is 73,725 hectares and annual production is a little over 11,000 metric tonnes. At Tata Coffee, a major portion of cardamom (around 143 Ha.) is cultivated at the Valparai estate in Tamil Nadu. The remaining area of about 73 Ha. is cultivated in the valley of coffee estates in Coorg, Hassan and Chikmagalur districts. The annual production is about 40 tonnes. Cardamom grades Green 8 mm Green 7 mm White 8 mm White 7 mm Lower grades like splits and lights White pepper A1 grade A2 grade A3 grade Lights grade

Vanilla Vanilla meaning 'little pod', a Spanish derivative from Vainilla, is a tropical orchid vine. The distinct, pleasant flavouring that are found in the fruit has many applications ranging from the food industry: dairy products, beverages, baked goods and confections to drugs and pharmaceuticals. It is the third most expensive spice traded in the international market after cardamom and has been given a fitting moniker as the 'prince of spices'. The total area of Vanilla cultivation in the world is 40,846 hectares and production is 5,500 tonnes. In India, Vanilla is cultivated in about 1,600 hectares with production of 60 tonnes. Vanilla is grown as an intercrop with coffee on the Tata Coffee Estates, where it grows by climbing over the existing shade trees in the plantation. The present population is 75,000 vines with annual production of 900 kilograms of green and the number is programmed to increase further. The quality of Tata Coffee's Vanilla is reported to be good with a Vanillin content of 2.1 - 2.5 per cent.

Marketing strategies:
Tata Coffee has always, now and earlier, when it was called Consolidated Coffee Limited, championed the cause of the industry on several occasions and before several government fora. This has led to burdens on the industry as a whole being reduced and growth opportunities enhanced says marketing vice-president. "Tata Coffee has always been aware of its position as the single-largest corporate house in the industry. It has used its dominant position to secure relief for the whole industry. It has, quite willingly, been this industrys conscience-keeper." It was the untiring efforts of Tata Coffee that led to the dismantling of controls in the industry and made it a free economy, much before the winds of liberalisation swept across the nation. The freeing of the coffee economy gave major industry players a path of value addition and branding to follow that would go a long way in making them healthy. Coffee is, after petroleum, the second-largest traded commodity in the world. Apart from the vagaries of nature, coffee is also subject to huge speculation by the nonplantation players who operate in this segment. The global coffee world is polarized between the Arabica growers (largely from the West) and the Robusta growers. With the major coffee consumption markets being Arabica-centric, this lobby has been prevailing in international markets thus far. With the industry being in the doldrums recently, Tata Coffee has taken the lead to form a cooperative movement among major players in the Asian region, like Thailand, Vietnam and Indonesia. It has propagated the formation of a regional plan for the coffee industry in this region that will dovetail into respective national plans that specific countries can follow. On the domestic front, Tata Coffee has actively worked with the government and the Coffee Board to promote Indian coffee, both internally and internationally. With domestic consumption of coffee standing at a woeful 55 grams per capita annually, Tata Coffee is actively spearheading efforts to increase this consumption level. This, by itself, will expand the coffee market to the benefit of all players. The company is also playing a major role in reorienting the industry towards better practices that will enable it to weather the coming WTO norms storm. The government is presently protecting the industry by imposing high duties on imported coffee. But, when India has to conform to the WTO rules in three years, the industry is going to be exposed to cheap imports from Asian countries. Towards meeting this challenge, Tata Coffee is exhorting the industry to follow better growing practices and research that will help the industry lower production costs and improve productivity. Since the gestation period for coffee is about six to seven years, Tata Coffee has been of immense help to the industry with its scientific and near-accurate scenario 10

planning exercises. This enables the industry as a whole to avoid getting caught on the wrong foot. Last but not the least, Tata Coffee has played a major role in getting the latest tenth plan document of the country to include an Arabica-centric movement for the coffee industry. It is this variety that commands the greatest premium in the world market and the company is trying to convince plantation owners to grow greater quantities of this variety than the Robusta kind, currently grown in much larger numbers in India. On the instant coffee front, the company is looking to expand current capacity from 6,000 tonne to over 8,000 tonne in the immediate future. The overall plan however, according to Huq, is to double the current capacity to 12,000 tonne within this financial year. Having helped some of the Russian and Japanese coffee brands with their packaging in addition to manufacturing their requirements, Tata Coffee is also looking to set up a few packaging units in the international market. The idea is to save on the freight cost, create efficient logistics management and be able to make timely supplies to markets like Europe, Africa and Russia and Japan. Going forward we will be looking to set up a packaging plant in Europe to start with and a second one in Russia if the situation demands

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Share capital:
The company's shares are listed in the National Stock Exchange, Mumbai, Bangalore Stock Exchange Ltd., Madras Stock Exchange and Hyderabad Stock Exchange. The company's marketing and corporate functions are based out of its corporate office located in Bangalore. Tata Coffee Ltd BSE: 532301 | NS E: TATACOFFEE | ISIN: INE493A010 19 Market Cap: Rs. 1,380 cr (Approx.) | Face Value: Rs. 10 | Volume: 65,165

Report card
Attribute PE ratio(price-toearnings) EPS (Earnings Per Share in Rs) Sales (Rs crore) Net profit margin (%) Last bonus Last dividend (%) Return on average equity Valu e 25.0 4 29.4 9 120. 11 13.1 1 1:01 50 13.6 6 Date 12/8/201 1 Mar, 11 Jun, 11 Mar, 11 11/10/19 94 13/05/11 Mar, 11

Past Five Year Profit Statement

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Awards and Certification:

Tata Coffee has been a significant contributor towards the growth and development of Indian coffee. Tata Coffee is committed to the environment and works in tandem with nature to produce quality crops. The company takes pride in its efforts towards corporate social responsibility and estate workers enjoy very high living standards and congenial working conditions. It has won several certifications and awards some of which are: Certifications Utz Kapeh certification for growing coffee in a socially and environmentally responsible manner Devarcadoo division of Balmany estate in Coorg is certified by IMO for manufacturing quality organic coffee SA 8000 for social accountability Instant coffee factory, Toopran is ISO 9001:2000 certified Curing works, Kushal Nagar is ISO 9001:2001 certified Apart from the above, Tata Coffee also won Certificate of Merit for Highest Exports to Russia and CIS. Awards The Silver Award, Bangalore Advertising Club, 1997, for Tata Caf A&M Award for Second Best Brand Launch, 1995, for Coorg Pure Coffee Most innovative launch, A&M, for Tata Caf 2006/2007 TO 2010/2011 A FIVE YEAR REVIEW 200620072008INCOME & DIVIDEND, ETC. 2007 2008 2009 Sale Value of Coffee and Estate Products and Gross Income From Services rendered (Rs. in Lakhs) Profit Before Tax (Rs. in Lakhs) Profit After Tax (Rs. in Lakhs) 20092010 20102011

26849.6 5 2774.77 2023.06

32692.3 8 3857.45 2468.13

33678.6 2 2840.6 1864.42

37342.4 3 4999.92 3198.98

42209.9 4 6862.18 5508.46

Largest exporter among EOUs in AP award for the years 2001, 2002, and 2003 Industrial Economist Award 2002 Flavour of India Cupping Competition, Bangalore, 2002

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Fine cup award for speciality coffee, 2002 Flavour of India Competition Award at Boston, USA, 2003 Flavour of India Cupping Competition Award at Seattle, USA, 2005 Mertikan Estate Best MNEB coffee under speciality, 2005 Flavour of India Fine Cup Competition - Berne, Switzerland, 2006 Winner of the Fine Cup Award for Finest Specialty coffee, 2007 Winner of the FE EVI Green Business Survey & Leadership Award: 2010-11

Board of directors:
R K Krishna Kumar (Chairman) P.T.Siganporia U.Mahesh Rao Prof.A.Monappa S.Santhanakrishnan T.V.Alexander Venu Srinivasan Hameed Huq (Managing Director) M.Deepak Kumar (Executive Director Finance)

Senior Management Team:

Hameed Huq (Managing Director)

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M D Kumar (Executive Director - Finance) T Radhakrishnan (Vice-President ICD Operations) A.S. Muthanna (Vice-President - Plantations) Christine F Jamal (Vice President - Corporate) M K C Pai (company secretary)

Head office and branches:

Head Office: TATA COFFEE LIMITED Pollibetta - 571215 South Kodagu, Karnataka. Phone: 08274-251411-13 Fax: 08274-251425 email:plpbt@tatacoffee.com

Corporate Office: No.57, Railway Parallel Road Kumara Park West Bangalore - 560020 Phone: 080-23560695 / 96 / 97 Fax: 080 23561972 mdo@tatacoffee.com Marketing Division Ph:080-23560695-97 23561976-81 23560708-714 Fax:080-23561937 23341833 email:mktblr@tatacoffee.com 15

Green Bean Exports Phone: 080-23560695-97 23561979-813 23560708-714 Fax:080-23561974 email:expblr@tatacoffee.com / bvc @tatacoffee.com Contact person: Vinaya Chinnappa Instant Coffee Exports Phone: 080-23560695-97 23561976-81 23560708-714 Fax: 080-23561937 23341833 email: cj@tatacoffee.com Contact person: C.Jawahar

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