A deal involving a global tea-trading portal appears to be brewing at Tata Tea. While sources indicate that the company has already made a pitch for one such portal, where it wants to make an investment, the name of the company could not be confirmed. Tata Internet Services Ltd. (TISL), which officially launched its commercial services on Thursday, is also believed to involved with this deal.

Commenting on the development, Mr. Kishor Chaukar, managing director Tata Industries, who was present at the launch of Tata Internet, said to The Financial Express, "Yes, I have been discussing the possibility of an investment of this nature with the management at Tata Tea but we haven't finalized anything. On the issue of Tata Internet's involvement, it makes sense for Tata Tea to get together with them. Tata Internet has the capability to provide several services while Tata Tea has the domain knowledge necessary for the venture".

Mr. N Srinath, CEO, TISL also indicated that the company was in talks with several group companies as well as major corporate outside of the Group, to offer various B2B services. While he did not name the companies outside the Group, he indicated that the company was talking to Tata Engineering to offer some Internet services.

He added that the sectors TISL was targeting as a potential market for B2B services were hospitality, retail, manufacturing and finance.

The B2B Internet services would include Virtual Private Networks, Private and Label Exchanges, among others.

(02/03/2001)
The Financial Express

COLOMBO (Dow Jones)--Sri Lanka's tea exports in January rose by 17% compared with the previous year, according to a statement by Asia Siyaka Tea Brokers Friday.

Tea exports in January were estimated at 22.0 million kilograms compared with 18.8 million kilograms in the same month last year, the statement said.

It added that total exports in the month under review were valued at 4.8 billion Sri Lankan rupees ($1=LKR86.13), up by nearly 40% from the same period last year.

Tea is one of Sri Lanka's biggest export earners.

Brokers have attributed the higher earnings to January's flotation of the local currency.

Total output in January rose by a record 20% to 27.2M Kg.

The government has privatized a number of plantations since 1995, resulting in improved husbandry and more efficient land use, and increasing tea output in recent years.

The government has sold 51% stakes in 19 plantations.

It still has majority control in three others, which are mainly coconut and rubber plantations.

The following is a breakdown by category of total tea exports for January and the corresponding figures for 1999.

 
                             2000               1999 
  Tea in bulk            12,815,346         12,910,893 
  Tea in packets          6,406,968          3,718,098 
  Tea in Bag              1,004,713          1,027,780 
  Instant Tea               197,117            105,510 
  Green Tea                  38,568             17,607 
  Other Tea               1,092,472            541,292 
  Imported/Re-exported      539,832            523,038 
 
  Total                  22,095,016         18,844,218 
 
 (All figures are in kilograms.) 
 

 

(02/03/2001) Dow Jones

JAKARTA, March 1 Asia Pulse - Due to a rising demand in the world market, Indonesia has boosted its sales of black tea, an official said.

The world's demand for black tea has increased in the past several weeks most notably in Europe, the Middle East, and some other Asian countries, according to Salud Budisantoso, an official of the black tea auction committee.

Sales reached around 90 per cent of the 1.10 million kg of black tea offered at the auction, which was held in Jakarta on Wednesday.

Sales this week did not change from last week in volume, but the price rose with purchases made mostly by Unilever and Sariwangi, a beverage company.

(ANTARA)

(01/03/2001)

The budget is a happy blend for tea companies, which have finally won concessions they have been asking the government to offer since the last two years.

The finance minister has increased the customs duty on imported tea from 35 per cent to 70 per cent, which seeks to curb imports in the post-QR regime. The developmental allowance goes up from 20 per cent to 40 per cent.

“We welcome the increase in customs duty on import of tea from 35 per cent to 70 per cent. This is in consonance with the government’s policy of ensuring that there are adequate safeguards after the quantitative restrictions are dismantled,” R.S. Jhawar, chairman of Indian Tea Association (ITA) said.

Last year, the industry was buffeted by a price slump, reportedly caused by a wave of cheap imports to the tune of 12 million kgs. The industry complains that cheap varieties are imported from countries such as Nepal, Bangladesh, Malawi and Sri Lanka and being blended with the Indian tea.

“This will put an end to the imports of the cheap tea. The price of blended tea will go up. We expect Indian tea to regain its once-dominant position in the domestic market. The budget will help boost the growth of the tea industry,” said R.K. Dixit, chairman of Darjeeling Planters Association.

Jhawar said ITA particularly welcomes the proposals related to the Income Tax Act, enhancing the rate of allowance under Section 33 AB from 20 per cent to 40 per cent.

This measure will enable the tea industry to substantially step up its developmental activities by way of replantation, rejuvenation and modernisation and will provide a strong foundation to the tea industry not only to sustain growth but also measure up to challenges in the post WTO era.

The tea bushes which are more than 50 years old need to be uprooted. “The enhancement in developmental allowance will help Darjeeling and South Indian tea industry which cannot take any developmental work due to non-availability of funds,” a senior tea industry official said.

Krupakaran David, managing director of Goodricke Group Ltd welcomed the budget. However, he pointed out it has not addressed the rising cost of production of tea. “It would had been a welcome relief if the government took steps to reduce central taxes on plantation. Tea industry has to pay both agricultural income tax and central tax,” he said.

(01/03/2001) The Telegraph