In a major expansion step, the Kanan Devan Hills Plantations Company (KDHPC) is expanding its operations to Vietnam and Ethiopia.
In Vietnam, the company will form a Rs 60-crore joint venture with the Lam Dong Tea Joint Stock Company (LADOTEA) and has upto 60 percent equity participation for setting up units for processing and manufacturing black, instant, green and flavoured teas in South Vietnam.
The MoU, signed in this regard between T V Alexander, Managing Director of KDHPC and Doan Trong Phuong, Managing Director, LADOTEA, will allow KDHPC to invest upto 60 percent in the equity of the newly formed company, T V Alexander said.
The units will be set up for processing and manufacturing black tea, instant tea and green tea extract. These products will be for export and will not be brought to India, Alexander said. The factory will be in NaoLoc, Lam Dong province in South Vietnam. The investment for the three units will be around 12 million US dollar, he said.
The LADOTEA supplies about 6000- 8000 tonnes of variety tea products, including orthodox black tea, CTC black tea, green tea and flavoured teas yearly.
The company’s products have been exported to countries in Asia, Europe, and North America.
The new company envisages to produce about 12 lakh kg of black tea and 7 lakh kg of instant tea, about 98,000 kg of green tea per year, he added.
The KDHP has signed another MoU with East Africa Business Private Ltd of Ethiopia, a subsidiary of East Africa Holdings, to manage the Chewaka estate of East Africa Agri Business PLC commencing from July 1.
The company will transfer its latest technology of tea planting, growing, harvesting and manufacturing of black tea, Alexander said.
It will implement fully in opening a new tea plantation of 5000 hectares and will have the option to invest in the equity of the company after seeking board’s approval. The teas produced by Chewaka will be marketed by a joint venture company to be formed between KDHPC and Dubai Tea Trading Centre (DTIC), he said.
The KDHPC has over 23,000 hectares of plantations. The company currently produces black, green, organic, flavoured and speciality teas and exports to UK, Iran, UAE, Sri Lanka, US, EU and Pakistan besides servicing the domestic markets.
