The Hindu Business Line : B K Birla Group’s Jay Shree Tea acquires Jayantika Tea

Sharing this at the company’s annual general meeting here on Friday, Mrs Jayashree Mohta, Director of the company and also daughter of Mr Birla, said with this acquisition the company’s tea growing capacity would be about 1.1 million kg annually. “The acquisition should be in the interest of the company”, Mrs Mohta observed.

Right now, the company has 20 gardens — 10 in Assam, eight in West Bengal (six in Darjeeling and two in Dooars) and two in Tamil Nadu, with total capacity of about 20 million kg annually.

Rise in exports

Earlier, Mr Birla, in his address, said the company’s exports in the current year were estimated to rise to Rs 60 crore from Rs 49 crore last year. Till May, the exports amounted to Rs 13.25 crore, he said.

He felt that the domestic price of tea was set for a rise. This would happen due to two reasons. First, in the absence of carry forward stock, the market started on a strong note. Also, the production of orthodox tea was increased following strong enquiries from overseas buyers and the shift in production would tighten the availability of the CTC variety. The current price of Cachar and Assam teas was higher by Rs 16/17 a kg compared with the last year and the Darjeeling prices were up by around Rs 54 a kg.

Following restructuring, Birla Tea Ltd, as Mrs Mohta pointed out, was left with only one garden — North Tukvar Tea Estate in Darjeeling.

Darjeeling Consolidated Tea and Marionbarie Tea have been demerged from Birla Tea and amalgamated with Jay Shree Tea which shall issue and allot one equity share of Rs 10 each for every 20 held to the members of Birla Tea.

Further, the Infotech Division has been divested and transferred to a new company.

“The said arrangement should have beneficial impact on the shareholders, employees and all concerned”, she said. Referring to the company’s chemicals and fertilisers division, she said the production of SSP (single super phosphate) was discontinued from March 6 to May 26, 2008 due to skyrocketing international price of sulphur, the key raw material. Also revision of subsidy was awaited. However, the Union Government revised the subsidy since then, she added.

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