COLOMBO --The Private Tea Factory Owners Association of Sri Lanka has said rising costs and a heavy debt burden are hurting tea production quality due to the use of less expensive raw materials and cheaper production methods, the Daily Mirror reported Thursday. The association of smallholder factories - which accounts for around 55% of the country's total tea production - has asked the government to establish a debt relief fund to help them restructure their operations.

Dow Jones Thursday, May 10 2001

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In next two or three months, Tata Tea and Tata Sons will inject funds into Tetley to help ease portion of its debt burden; R.K. Krishna Kumar, Tata Tea's vice-chairman, tells Far Eastern Economic Review this will take form of paying off one of the more onerous loans on Tetley's books: 20 million pounds from company's previous owners at 15% interest per year. Tata Tea acquired Tetley's Group for 271 million pounds a year ago, but says it won't attempt merger until debts incurred in acquisition have dwindled to manageable level.(AXT) Dow Jones Wednesday, May 9 2001

Dow Jones Wednesday, May 9 2001

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Sri Lankan high commissioner in India Senake Bandaranayake today said a joint effort is needed to solve the conflict between his country's tea traders and those of India over export of tea from that country. "It is in the interest of the tea industry of both countries to work out areas where there is no conflict," Bandaranayake said.

Commenting on the prospect of blending of Indian and Sri Lankan tea for export purposes, he said that experts' response is required for this. He said, though he is not sure of the statistics, it is believed that Sri Lanka, with a much lower production of tea than India, has a larger share in the global tea market.

He said tea industry of both the countries can jointly work out areas to capture bigger share in the international market and also fetch better prices. The basis for such an initiative has widened with Tatas being one of the major producers of tea in Sri Lanka.

The Telegrah 08.05.2001

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Sri Lanka is increasing her share of tea in the global market, while making steady inroads into most of India's traditional territories. They have gained entry into Russia, Dubai, Saudi Arabia, Iran, Jordan and Egypt. In Russia, Sri Lanka's teas have captured 39 mkg in 1999 from a zero share in the early 90s.

In Dubai, Sri Lanka's tea saw a rise from 17 to 41 mkg from 1995-1999 in four years. Aggressive marketing and attractive value additions have given Sri Lanka an edge in the world market, with India coming a poor second. The Tea Board is formulating a package of measures to arrest the downslide. Focus on quality and improvement of field and factory procedures, with replantation a crucial factor will be a part of this.

Tea is the most popular beverage in India and this certainly has complacency. Now, rather late in the day, realization has dawned about the competition and the subsequent decline in the rate of growth. But better late than never. Tea is resting on the solid base of a massive market, but needs to take a long, hard look at its long-term plans and strategies. A concerted campaign to boost domestic consumption, targeting untapped and potential export markets, focusing on quality production and establishing a global brand, would definitely put Indian tea back on the rails to chug on to a glorious future.

Daily News 1 May 2001

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James Finlay and Co has said it entered new markets such as Brazil and Spain with its main brand of Ceylon tea called Alwazah.

The company, which owns and manages estates under Hapugastenne Plantations and Udapussellawa Plantations, said in its annual report that it is focusing on increasing volumes in tea exports, especially branded value added packs.

"We have planned for more intensive advertising campaigns in the various markets that we operate in under our own brands," chairman Dickie Juriansz told shareholders.

"We have also actively sought the custom of reputed supermarkets to pack their house brands," he said.

The company is involved in the manufacture of black tea, blending and packaging of tea for export, and also makes and exports speciality teas such as green tea.

About 30 per cent of green tea made in Sri Lanka is from the Finlay plant.

The group is also in insurance and environmental services and is the agent for international airlines and markets industrial and agro-chemicals.

The group's total turnover rose to Rs. 3.6 billion last year from Rs. 3 billion in 1999. Local turnover rose to Rs. 2.1 billion from Rs. 1.7 billion while export turnover rose to Rs. 1.5 billion from Rs. 1.3 billion.

Net profit after tax was Rs. 196 million last year compared with a loss of Rs. 106 million the year before.

Tea exports increased to 7.2 million kg - about 75 per cent in branded form.

Sunday Observer 29 April 2001

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