Jay Shree Tea & Industries Ltd, a Kolkata-based tea manufacturer, is acquiring three tea estates in Africa. These acquisitions follow Jay Shree’s Rs 112.5-crore domestic buy last month. The financial details of these transactions were not disclosed.
Jay Shree is acquiring 100% shareholding of Kijura Tea Co Ltd in Uganda, and another 60% stake each in two other estates, Mata Tea Co Ltd and Gisakura Tea Co Ltd in Rwanda, it said in a statement.
The acquisitions are significant for Jay Shree Tea, which lost out in its earlier move to Mcleod, to establish its foothold in Africa. In December 2009, Kolkata-based tea plantation major Mcleod Russel India Ltd acquired six tea estates in Uganda with an annual production capacity of 15 million kg from UK-based James Finlay Ltd.
According to a previous report in Economic Times, the acquisitions are likely to lift the production capacity of Jay Shree Tea to nearly 29 million kg in 2010-11, from 23.5 million kg now.
While the acquisition of Kijura Tea will be made through its Dubai-based investment arm Birla Holdings Ltd, Mata Tea and Gisakura Tea will be made through Tea Group Investment Company Ltd, a 50:50 joint venture company of Jay Shree Tea and Rwanda Mountain Tea –SARL, the statement added. Earlier in March, Jay Shree Tea had bought M P Chini Industries Ltd in Bihar. It had also acquired a firm called Jayantika Tea Co in 2008.
Besides overseas deals, the company is actively looking at opportunities in domestic markets as well. It had entered into an agreement with Assam Tea Corp Ltd for purchase of green leaf and operating its factory in Longai, Assam. Currently, it has 20 tea estates within its fold, including 10 in Assam, 8 in West Bengal and 2 in Tamil Nadu.
The net sales and net profit of the company were Rs 419.2 crore and Rs 12.76 crore in fiscal 2008-09, respectively.