The Hindu Business Line : Jay Shree Tea plans Assam garden buys for Rs 40-50 crore

Scorecard
For the year ended March 31, 2006, Jay Shree Tea's turnover increased to Rs 259.31 crore from Rs 245.01 crore in the previous year.
Net profit jumped to Rs 10.65 crore from Rs 6.28 crore.
Exports were worth Rs 25 crore; the company hopes to increase this to Rs 30 cr this year.

Kolkata , June 27

Jay Shree Tea & Industries Ltd, a B.K. Birla group company, is looking at fresh acquisition of tea estates in Assam, according to Mr D.M. Jain, Managing Director.

After addressing the 60th annual general meeting of the company's shareholders, Mr Jain told reporters that the company wants to acquire only "good" tea gardens in that State.

At present, Jay Shree Tea has 10 estates in Assam. The company, which is cash rich, has kept aside Rs 40-50 crore for the proposed acquisition. Apart from Assam it has gardens in Darjeeling, Dooars and Tamil Nadu.

The company's annual tea production is 20 million kg, of which orthodox production is about 20 lakh kg which is grown mostly in Darjeeling. However, Jay Shree Tea wants to utilise the Union Government incentive scheme to increase its orthodox production in Assam.

For the year ended March 31, 2006, Jay Shree Tea's turnover increased to Rs 259.31 crore from Rs 245.01 crore in the previous year. Net profit jumped to Rs 10.65 crore from Rs 6.28 crore.

In 2005-06, Jay Shree Tea exports were worth Rs 25 crore. In the current financial year, Mr Jain hoped, this would increase to Rs 30 crore.

Mr B.K. Birla told reporters that the company fared better despite a severe fall in tea prices and he credited this to his employees' efforts.

Infotech losses

The company's infotech division, which runs a call centre in the city, has registered a loss before tax and interest of Rs 1.81 crore on earnings of Rs 1.39 crore.

Mr Jain said the company was making fresh investmentsin the infotech business to turn it around. The 90-seat call centre is being upgraded to 200 seats. The company has invested Rs 6 crore over the years in this division.

On Tuesday, at the Bombay Stock Exchange, the Jay Shree Tea stock opened at Rs 108, reached a high of Rs 111.95 but ultimately closed at Rs 106.85.

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