The RP-Sanjiv Goenka group controlled Harrisons Malayalam will continue to focus on rubber plantations, but may take a call on tea business after a year if revenues don't improve, a top official said today.
"We will take a call on the existing tea business after a year unless revenue from tea improves. But in rubber we are considering to increase plantation in another 4,000-5,000 hectare in Ghana on a long-term lease basis," Harrisons Malayalam executive director N Dharmaraj said.
The company has tea and rubber plantations. Currently, the realisation from tea is close to Rs 100 a kilogram and the company is trying to improve it by another 10 per cent by value addition and product mix.
"We are trying to increase the orthodox tea from 60 per cent to 80 per cent. We hope this will help us to fetch a higher price by Rs 10 a kilogram," Dharmaraj said on the sidelines of an Indian Chamber of Commerce organised Tea Conclave.
Currently, the tea business contributes about Rs 70 crore from 3,000 hectare of plantation, Dharmaraj said.
Speaking about the rubber business, he said, "Rubber prices have come down drastrically in the last few years. We are therefore looking at product differentiation."
The company is planning to develop rubber plantations on 4,000-5,000 hectare in Ghana on a long-term lease basis.
"We visited Ghana recently and held discussions with (government) officials for developing rubber plantations. They are yet to get back on our proposal," Dharmaraj said.
"The company can invest nearly Rs 300 crore for new rubber plantations," Dharmaraj said.
