Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT Audit :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: empanelment :: cpt :: due date for vat payment :: articles on VAT and GST in India :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: Central Excise rule to resale the machines to a new company :: form 3cd :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
ę Mergers and Acquisitions »
 New Indirect Tax Regime: Homebuyers and renters keeping fingers crossed on GST impact
 Hitachi India appoints Bharat Kaushal as managing director
 RBI issues new draft rules for M&As
 The 12 digital health mergers and acquisitions of Q1 2017
  Deals of the day-Mergers and acquisitions Apr 19, 2017
 Deals of the day-Mergers and acquisitions Apr 19, 2017
 Foreign investors giving M&A deals in India‚Äôs renewable energy sector a miss
 Mergers and acquisitions are getting riskier as insurance claims rise
 The Financial Times started a mergers and acquisitions newsletter for its highest-paying subscribers
 Milton Barbarosh Offering Assistance on Mergers & Acquisitions
 Deals of the day-Mergers and acquisitions 15 April 2017

M&As add to teams growth confidence: Tea Companies
March, 30th 2011

In India, tea prices have been rallying since 2008. According to the statistics released by the Tea Board of India, tea prices have almost doubled in the past five years due to a stagnation in tea production and steadily growing demand.

Consequently, India's tea producers have been minting money due to the rising price of their produce. Valuations of tea firms, like Mcleod Russell, Harrisons Malayalam , Goodricke Tea and Jayshree Tea have increased steadily over the past couple of years. Most firms have used the rally in tea prices as an opportunity to augment their plantations .

Rising tea prices have enabled the producers to fund acquisitions and expand inorganically . This has also enabled companies to increase production at a time, when there is a mismatch in demand-supply . In case of overseas acquisitions, companies secure a hedge against volatility in production in the domestic market that can occur due to weather uncertainties and labour unrests.

Mcleod Russel , the largest tea producing company in India, has acquired plantations in India , Veitnam and Uganda. It is now scouting for plantations in Africa. Its wholly-owned subsidiary Borelli Tea Holdings is set to acquire a 60% stake in Gisovu Tea Company of Rwanda.

Dhunseri Petrochem & Tea recently purchased Sona Assam Tea Factory having a capacity of the seven lakh kgs per annum. This is the fourth acquisition for Dhunseri in the current financial year. Goodricke Group is reported planning to acquire gardens there. As the new tea season starts in April, the industry expects prices to be on an average 15-20 % firmer than the year-ago level. This is because despite the weather being good currently, the new season will formally open with a shortfall of 60-100 million kgs.

The acquisitions made by the firms underscore their confidence in the bullish outlook of the tea market. With a positive price outlook, the domestic tea industry may continue to see further consolidation and overseas acquisition.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions