Jay Shree Tea & Industries, a B K Birla group company, is close to announcing its first overseas acquisition, in Uganda.
"We are in an advanced stage of negotiations for acquisition in Uganda and we hope to finalise it in a month's time," Jay Shree Tea Managing Director D P Maheswari told PTI.
The company is also open to acquisition in the domestic market, Maheswari said, but added that there was little scope for buyouts in India.
Jay Shree Tea Chairman B K Birla had said in June that the company had appointed merchant bankers to scout for tea gardens in Uganda and Kenya.
The company has 21 estates spread across the tea producing regions of Assam, Darjeeling, Jalpaiguri, Uttar Dinajpur and Tamil Nadu.
Indian tea majors are lining up to acquire tea assets in Africa for its high productivity and low costs.
Total production of the company in the current financial year was expected to touch 23 million kg, of which 3 to 4 million kg will be bought leaves. In 2008-09, the production was 21.8 million kg.
With the acquisition, production in the current financial year could surpass earlier projections.
Mcleod Russel, the largest bulk tea producer of the world, had also said it was keen to expand in Africa and Vietnam. In Africa, the company was looking for tea assets in Rwanda, Kenya and Uganda.
"Last year there were some offers from tea companies in Africa, but there is no serious dialogue on acquisition so far," a senior McLeod official said.
