TERAI TEA. Share price

Incorporated as a Private Limited Company on 25.09.1973 asTerai Tea Company Private Limited under the Companies Act1956. The Company became a "Deemed Public Company" pursuantto section 43A(1) of the Companies Act 1956 w.e.f.26.04.94. Subsequently the share holders of the Companypassed a special resolution on 15.11.94 for deleting therestriction clause under section 3(1 )(iii) of theCompanies Act and as such the Company became a publiclimited company within meaning of section 3(1)(iv) of theCompanies Act 1956 and the Registrar made the requisiteendorsement on Certificate of Incorporation on 05.01.95.B. MAIN OBJECTS OF THE COMPANYThe main objects of the Company as set out in theMemorandum & Articles of Association of the Company inter-alia include:1. To carry on the business of tea planters in all itsbranches to grow cultivate produce prepare manufactureand render marketable tea coffee cinchona and to buysell dispose of export and deal in tea coffee cinchonaeither in its prepared manufactured or raw state andeither by wholesale or retail.2. To grow cultivate buy prepare manufacture and rendermarketable any seeds fruits and vegetable produce orproducts of the soil and products of agriculture orhusbandry and to sell dispose of an deal in any suchseeds fruits produce and products in their preparedmanufactured or raw state and either by wholesale orretail.3. To carry on the business of Timber Growers TimberMerchants and Saw-mill Properietors and to buy sell growprepare for market manipulate import and deal in timberwood and fuel of all kinds and to manufacture and deal inTea Chests and articles of all kinds in the manufacture ofwhich timber or wood is used.C. PRESENT BUSINESSThe main business of the company is tea plantationprocessing and trading & export of tea. This Company ownsBagdogra Tea Estate situated at Bagdogra in Terai region ofNorth Bengal which has total grant area of 802.08 acres(324.73 hectares) having annual production of 8 lakh kgs.of tea. The Company is also engaged in export of teahaving started this operation only in the year 1992-93. Inaddition the Company has also started a separate divisionfor marketing of Packet Tea under it''s own brand name MYCUP in the domestic market.The Company started it''s export division only in the year92-93 the first shipment having been made only inNovember 1992. In just 5 months'' time during the year92-93 the Company could achieve a turnover of Rs.22.09Crores which is considered phenomenal for a new entrant.The year 93-94 was considered very bad in view of fall indemand of tea in the Russian Market and the total export oftea from India witnessed a sharp decline. In spite of suchheavy odds the Company could achieve an export turnover ofRs 13.22 Crores in the year 93-94. The Company has alreadyachieved a turnover of Rs. 6 crores upto October 1994 andhas finalised a further order for Rs. 12.54 crores to beexecuted by March 1995. The Company is also negotiatingfurther orders for Rs. 6 crores worth of tea to be shippedby March 1995 and is thus positive about achieving aturnover of Rs. 25 crores during the year 94-95. The Companyhas also received orders for shipment of 4000 M/tons of teafrom April 95 to July 95 from Soviet Russia and thusexpects substantially high export turnover during the nextyear. The Company has already signed a Memorandum ofUnderstanding(MOU) with M/s Sovincom of Moscow Russia oneof the leading importer of tea in Aussia for export of teaworth Rs.500 Million during the year 1995-96. Thus in spiteof heavy odds the Indian tea export business is facing thisCompany is growing. This has been possible only because of thepolicy of the Company to popularise it''s brand name in theimporting countries. The Company is at present marketing tea inpackets under the brand names of TERAI KING TERAI QUEEN TERAIRUNGNEET MONARCH TERAI MAHARAJA TERAI SUPER AND TERAISNOWVIEW. etc.Presently the Company is blending and packeting tea on acontract basis from outside parties. In spite of excercisingproper supervision problems arising from complete dependanceon outside parties are many such as in the fields of qualitycontrol delays in deliveries etc.Hence it is absolutely essential to have own unit dedicated for blending & packeting with modern machines for tea processing. This will enable the company to plan major expansion in the export market.Area under Tea : 614.86 Acres (248.93 Hectares)Production in last 10 years : Qty. (in Kgs)84 (Calandar Year) - 43193885 " - 41787786 " - 36299287 " - 41357888-89 (15 months) - 44965789-90 - 47030890-91 - 53726091-92 - 45470092-93 - 53554093-94 - 709256