The Hindu Business Line : Jay Shree Tea eyeing acquisitions abroad

This was indicated by the company’s Chairman, Mr B.K. Birla, while addressing newspersons at the end of the company’s annual general meeting here on Monday.

Mr Birla, however, made it clear that no gardens had been identified as yet for acquisitions. “Our bankers and merchants bankers have just started giving us some information with any concrete development still to take place,” he said, pointing out, “the Khaitans (referring to McLeod Russel of the B.M. Khaitan Group) have already made an acquisition abroad”.

Mr D.P. Maheswari, Managing Director, said the company was looking for gardens of bigger size, with an annual production of 15 million kg (mkgs) to 20 mkg, for acquisition. Asked to name the countries being considered for overseas acquisition, he said: “There may be opportunities in Uganda and Kenya”.

Promotors’ holdings

Earlier, while addressing shareholders, Mr Birla ruled out the possibility of hiking promoters’ holdings in Jay Shree Tea & Industries Ltd, saying, “my family members, with our friends and relatives, already hold close to 50 per cent, 49.33 per cent precisely”. Referring to his comment at the AGM of another group company on Saturday where he indicated to step up the promoters’ holdings in all group companies to 50 per cent, some shareholders wanted to know the position at Jay Shree.

The company’s fertiliser (single super phosphate) factory at Khardah in West Bengal, closed since March this year due to steep rise in the international price of sulphur, would be opened soon, Mr Birla said.

“The Khardah factory will be opened in July itself,” Mr Maheswari said ruling out its hive-off.

Shortfall in output

Earlier, in her address to shareholders, Ms Jayashree Mohta, who is Mr Birla’s daughter and a director of the company, indicated that, with 25 mkg shortfall in domestic production till April and a total of 77 mkg in Sri Lanka and Kenya, the tea price would go up by Rs 22 a kg in the current year over and above last year’s price.

The company’s production in the current year, as Ms Mohta estimated, would be about 23 mkg (including 3.4 mkg of bought leaf), up from 21.8 mkg (including 3.27 mkg of bought leaf) in 2008-09 and exports would amount to Rs 80 crore (Rs 65 crore).

Mr Maheswari indicated that one tea estate in Darjeeling had completed the process of organic farming and two more were in the process of being certified by early next year, and, enthused by the result, the company was bringing one more under the same process.

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