Memorandum of Understanding

The Board of Tata Tea Limited approved a non binding Memorandum of Understanding with Pepsico Inc. today with the intention of exploring the formation of a Joint Venture in the area of non-carbonated ready-to-drink beverages, focused on health and enhanced wellness. Definitive agreements for the Joint Venture are intended to be finalized over the next few months. The proposed Joint Venture is not intended to conflict with any existing arrangements of the parties. The transaction will be subject to corporate and statutory approvals as may be required.