Jay Shree Tea plans buys at home, abroad

KOLKATA: Jay Shree Tea & Industries (JTIL) has decided to expand its business footprint via overseas and domestic acquisitions. In the domestic market, the BK Birla-controlled firm is scouting for sugar mills and is looking for tea estates in Africa, Vietnam and Indonesia.

The company hopes to conclude acquisitions in both sugar and tea segments in the current financial year. Funding these acquisitions will be through internal accruals and overseas borrowings.

The company also plans to take up forward integration for its recently acquired MP Chini Mills in Bihar. Plans are afoot to increase capacity of the existing co-generation power plant at MP Chini Mills to 22 mw from six mw.

Installation of a distillery is also on cards. The sugar mill has a crushing capacity of 5,500 tonnes per day and its own sugarcane plantation is spread over 1,000 acres. JTIL acquired the sugar mill in March, this year, for Rs 112.5 crore.

Talking to newsmen on sidelines of the company's 64th AGM, chairman BK Birla said: “There are hardly any tea estates left in India that can be acquired. Therefore, we have decided to go in for overseas acquisitions in the tea space. For acquisitions in the sugar space, we are looking at the domestic market.”