By IANS,
Kolkata : Jay Shree Tea and Industries, a BK Birla Group company, is planning to acquire gardens in African countries like Kenya and Uganda, a top official said here Monday.
“We are unable to find much suitable gardens in India, that’s why we are looking at African countries like Kenya and Uganda,” B.K. Birla, chairman of Jay Shree Tea, told reporters on the sidelines of the annual general meeting.
If the acquisition plans become successful, it would be the Kolkata-based company’s first overseas buy.
Kenya is one of the major tea exporting countries. The tea produced in Kenya is high quality, blackish in colour and has a very strong aroma, officials said.
The company has appointed some bankers including ICICI Bank to identify gardens in Africa having a combined output size of 15-20 million kilogram annually, Birla said.
Jay Shree Tea director Jayashree Mohta has said the company hopes to raise its tea output to 23 million kilogram this fiscal from 21.8 million kilogram in 2008-09.
However, the company’s tea exports are expected to dip more than 50 percent to Rs.30 crore this fiscal due to falling demand in European markets. Last year, its exports stood at Rs.65 crore.
Managing Director of the company D.P. Maheswari said average tea prices during the year would be about Rs.22 per kilogram, higher than the previous year.
He predicted a shortfall of 30 million kilogram in the country by the end of 2009-10.
In 2008-09, Jay Sree Tea’s total output stood at 21.8 million kilogram as against 18.5 million kilogram of 2007-08.
This includes the 1.13 million kilogram produced by Jayantika Tea, which was merged with Jay Shree during 2008-09.
Jay Shree Tea has gardens in Assam, Cachar, Darjeeling, Terai and Dooars and Tamil Nadu.