The Hindu Business Line : Terai group acquires Sayedabad tea garden

According to Mr Ajit Kumar Agarwala, Managing Director of Terai Tea Co, the group's flagship and only listed company, the garden reopened on Wednesday after remaining under a lock-out for over eight months.

"We were initially hesitant to acquire the reins and management of this garden, but after receiving necessary support from West Bengal Government and the trade unions, we decided to go ahead," Mr Agarwala told Business Line.

The Terai Group started off its operations 20 years ago and currently owns eight gardens, all are based in West Bengal. The group's annual tea production is 1.5 million kg.

Capacity of the Sayedabad tea estate is nine-lakh kg per annum and employs 500-600 people.

This company has liabilities over Rs 5 crore, mostly to UCO Bank and Tea Board. Workers dues are also pending.

"We have taken over all the liabilities and we will also pay some amount of money to the erstwhile owner, the city-based Ghataks. We will soon start negotiations with the bank and Tea Board," he said.

Sayedabad tea estate is one of seven gardens which have been lying closed for quite some time.

The Terai Group has chalked out fresh investment of Rs 70-80 lakh in the Sayedabad tea garden for re-starting the operations.

Funds for the newly acquired garden would be generated from internal accruals.

"The top most priority for us will be to ensure increase in productivity, maintenance of the plantation and development works on a war footing so that we can convert Sayadabad tea estate into a viable unit," he said.

The Terai Group is open to further acquisitions.

According to Mr Agarwala, negotiations are on for at least four more gardens and all are based in West Bengal. If everything materialises, then Terai Group's annual production would increase two million kg per annum.

For the year ended March 31, 2004, Terai Tea Co's turnover was Rs 30 crore and net profit was Rs 18.22 lakh.

In the current financial year, the company expects Rs 35 crore turnover.

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