Dhunseri Tea & Industries is not interested in buying tea estates in Darjeeling and is looking for more acquisition opportunities only in Assam.
The company had acquired two estates of Apeejay Tea in Assam for a total consideration of around Rs 109 crore in December last year.
“The company is looking for good acquisition opportunities in Assam. I need good gardens only in Assam,” said chairman Chandra Kumar Dhanuka.
The company currently has 14 tea gardens in Assam, which produced around 15 million kgs of tea last fiscal. It also has tea estates in Malawi, Africa, which manufactured around 9 million kgs of the brew in FY23.
The company is not interested in buying tea gardens in Darjeeling. “I have never been interested in Darjeeling,” Dhanuka told FE.
Significantly, Darjeeling tea industry has been witnessing a gradual fall in production over the last more than a decade. In 2011, tea production was 9.14 million kg, while it was 8.13 million kg in 2016. It came down to 7.01 million kgs in 2021.
Production of Darjeeling tea, the first product to get a geographical identification (GI) tag in India, has been hit by climate change, labour issues, lower productivity and profitability. Facing financial crises, many planters have sold gardens in recent years.
Kolkata-based Dhunseri Tea had also acquired three tea estates in Assam from Warren Tea for Rs 90.8 crore in November, 2022.
The company’s consolidated net loss for the last financial year narrowed to Rs 23.78 crore from Rs 94.23 crore for the previous financial year. Revenue from operations stood at Rs 337.47 crore for FY23 against Rs 349 crore for FY22.