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Tata Tea, the second largest branded tea maker in the world, will exit the beverage retailing business, including Chai Unchai, as part of the group’s strategy to focus on its branded products. Tata Coffee, another group company, which sold its 34.3% equity in retail chain Barista to NRI investor C Sivasankaran five years ago, has also dropped its plan to re-enter the business, according to a report in Business Standard.In a move to refocus on the growth of brands, the company had decided to exit from café business like Chai Unchai in Bangalore, said Sangeeta Talwar, executive director, marketing, Tata Tea. She also confirmed that Tata Coffee, a listed subsidiary of Tata Tea, would not pursue its plans in the café business. Since margins from the café business is volatile, Tata Tea would be interested to cash in on its core competence in the sale of branded products.
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