India’s largest bulk tea producer Mcleod Russel India Ltd. closed 2016-17 with a 2 % drop in its revenue at ₹1485.4 crore and a 63% drop in operating profits which stood at ₹30.6 crore
The company has tea estates in Assam and Dooars in India (production 84.6 million kgs) as well as operations in Uganda and Rwanda in Africa and in Vietnam. Total crop was 2.1 million kgs lower at 115.3 million kgs.
It said that total sales volume were lower at its Indian operations with lower prices (about ₹11 per kg drop at ₹163 per kg), exports were also lower at 15 million kgs against 19 million kgs of 2015-16 with lower unit realisation.
Its consolidated earnings dropped to ₹110.4 crore from ₹168.9 crore of 2015-16 mainly due to lower Indian prices and increased wage-costs. Overseas operations were profitable in Uganda and Rwanda although margins came under pressure. In Vietnam, net loss was lower.
MRIL said in a press release that its board has okayed a proposal to start talks with group company Eveready Industries India Ltd. for forming a joint venture for developing EIIL’s ₹70-₹75 crore packet tea business. The release said that MRIL is world’s largest private-sector tea plantation company and the tie up will give it direct access to India’s ₹10,000 crore packet tea market.