Last year, the company exported about 1 lakh kg to the United Kingdom, which it plans to increase in the current year.

AFT is the country's largest tea exporter to Iran and had shipped 6.79 lakh kg earlier this fiscal from a contract signed last year, the official said.

Other companies are also believed to be negotiating with an Iranian delegation that will be revisiting India later this week after its talks with Sri Lankan tea companies.

The high-level team had come to India last week, when they met top industry officials and expressed their interest in fresh contracts in the current year.

The domestic tea industry had burnt its fingers last year, when contracted teas could not be shipped as the Iranian government had failed to open letters of credit due toforeign exchange problems.

Iran consumes around 85 million kg of tea a year, of which around 55 million kg comes from its own gardens. This tea, however, is of the common variety. The rest of the domestic demand is met from imports.

For the year to March 31, 1998, AFT reported a rise in net profit to Rs 22 crore from Rs 4 crore the previous year. Profits were powered by high prices for tea. AFT's production increased marginally to 139.70 lakh kg from 138.38 lakh kg during the year. Its average tea prices increased from Rs 50.51 to Rs 76.24 per kg during the last year.