Jay Shree Tea & Industries Ltd is looking into opportunities, both within the country and outside, for acquisitions of tea gardens. It has firmed up plans to acquire tea estates in Uganda and Kenya. No gardens had been identified as yet for acquisitions. However, it was looking for gardens of bigger size, with an annual production of 15 million kg (mkgs) to 20 mkg, for acquisition. Currently the company has 21 estates under its fold spread across tea producing regions of Assam, Darjelling, Jalpaiguri, Uttar Dinajpur and Tamilnadu.
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 is estimated, to 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).