The Tata Tea/ULFA Story


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Case Details:

Case Code : BECG008
Case Length : 09 Pages
Period : 1997-2001
Pub. Date : 2002
Teaching Note : Available
 Organization : Tata Tea, ULFA
Industry : Food and Beverage
Countries : India

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The Assam Tea Industry Terror Story

Till the late 1980s, militants did not interfere with the functioning of the Assam tea industry, as it was the single largest employer in the state.

Even during the bandhs declared in the state during 1979-85, tea gardens were exempted, like other essential services.

The first victim of the Assam tea killings was D Choudhury, Assistant Manager, Ledo Tea Estate, who was hacked to death in February 1989.

In August 1989, Amal Barua, a field clerk of Corramore estate of the Williamson Magor group was shot dead...

Tata Tea's Deals with the ULFA and the Government

The ULFA militants contacted Tata Tea for the first time in 1990. Unwilling to give cash to the militants, Tata Tea offered to invest in the 'upliftment of the Assamese people' instead. Over the next few years, the company set up 65 hospitals, 280 adult literacy centres, 173 childcare centres, a technical training institute and 110 schools...

The Unsolved Problem

Media reports claimed that Mahanta's decision to put an end to the Tata Tea case was because he had 'completed his revenge' by showing the tea industry the trouble he could put the companies through.

Moreover, since the biggest segment of the Assam government's revenues came from taxes imposed on the tea industry, the former could not afford to be always at loggerheads with the latter...

 

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