Apeejay eyes plantations abroad

The Apeejay Surrendra group will grow its packet tea and plantations businesses simultaneously and is already eyeing plantations in Kenya, Sri Lanka and Vietnam.

Karan Paul, chairman, Apeejay Surrendra group said, "We are looking at growing both the packet tea and plantations sides of the business."

In recent times, companies such as Hindustan Lever (HLL) and Tata Tea, which were trying to focus on the packet tea business, are gradually retracting from the plantations business.

The group was on the lookout for gardens beyond the domestic market. Paul said it made sense to acquire gardens overseas, given their high-cost structure in India.

He said the market had changed and acquisitions in Kenya, Sri Lanka and Vietnam would be good investments.

Paul believed the plantations business had not performed well but that did not mean that the bulk tea business had no prospects. He said, the group would wait for the cycle to get over.

Paul added the group had a high level of skill and expertise in the plantations side of the business. "We have a strong team" he said.

Sources said the group was in the fray for the Doom Dooma division of HLL, comprising seven gardens.

About the status of the bid, Paul refused to comment and said one would have to ask the merchant banker of HLL.

Apeejay had a workforce of over 40,000 and 17 estates producing over 21 million kg of tea from a plantation area over 30,000 acres.

Three of its single estate teas""Sessa, Pengaree and Khobong""were sold in Harrods and other premium tea boutiques across the world. Apeejay Tea also sells its teas through its own premium tea boutiques, Flurys and Cha bar.