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Dhunseri Tea & Industries Ltd.

BSE: 538902 Sector: Agri and agri inputs
NSE: DTIL ISIN Code: INE341R01014
BSE LIVE 15:55 | 21 Aug 287.50 -2.20
(-0.76%)
OPEN

290.00

HIGH

290.00

LOW

286.00

NSE 15:31 | 21 Aug 289.15 -0.50
(-0.17%)
OPEN

289.90

HIGH

290.00

LOW

282.65

OPEN 290.00
PREVIOUS CLOSE 289.70
VOLUME 64
52-Week high 348.95
52-Week low 250.25
P/E 20.28
Mkt Cap.(Rs cr) 201
Buy Price 287.50
Buy Qty 5.00
Sell Price 0.00
Sell Qty 0.00
OPEN 290.00
CLOSE 289.70
VOLUME 64
52-Week high 348.95
52-Week low 250.25
P/E 20.28
Mkt Cap.(Rs cr) 201
Buy Price 287.50
Buy Qty 5.00
Sell Price 0.00
Sell Qty 0.00

Dhunseri Tea & Industries Ltd. (DTIL) - Chairman Speech

Company chairman speech

"At Dhunseri Tea we are strengthening our business model to report a largerproportion of value-added revenues"

We have invested continuously in graduating to quality by improving plucking standardsgenerating incremental volumes addressing the requirement of buyers and replenishing oldbushes with new ones.

At Dhunseri Tea we believe that growth can be achieved in good markets through asustained improvement focus - whether we acquire new gardens whether we enhance theiryields whether we increase their realizations whether we convert a part of theproduction into packet teas or we leverage the strength of our distribution network tointroduce new products.

When we acquired the Africa plantations in 2012-13 the company resolved to enhanceoperating efficiencies and enhance annual cash flows. Our African properties generated '90.46 cr in revenues in 2015-16 reported reasonable margins strengthened geographicde-risking and provided attractive operating leverage on which to grow our business.

We have done something similar in our Indian operations: we have invested continuouslyin graduating to quality by improving plucking standards generating incremental volumesaddressing the requirement of buyers and replenishing old bushes with new ones.

The core of our quality commitment lies in our blending competence. This is a criticalaspect in tea manufacture; tea is sensitive to the place where it is grown altituderainfall and time of plucking. Leaves plucked at different times could taste different.Our competence is derived from the fact that each of our blends of different tea brandsdeliver consistent taste and quality throughout the year.

This blending competence is derived from the understanding of what consumers want interms of their taste profile. This taste could comprise diverse realities - colour tastesmell and granularity. Our team of tasters and blenders regularly appraise tea qualitymanufactured across our various estates; we possess exclusive blend receipts for variousbrands; our tea tasting and blending makes it possible for us to manufacture five to sixdifferent tea brands as per consumer preferences.

These teas are tasted several times before they are packed making them distinctive andunique.

The result is a growing popularity of our Lal Ghora and Kala Ghora brands showcased intheir sustained leadership in the packet tea segment of Rajasthan competition from MNCbrands notwithstanding.

The time has come to make new moves with attractive implications.

We are one of the few plantation companies in India to have extended to packet teaoperations which is a challenging space marked by dynamics completely different fromgrowing and processing teas. During the last financial year we made the second decisivedecision: to extend the distribution of packet teas from one State to a second Stateenjoying an attractive opportunity window and relatively under-addressed localized packettea potential.

So what is the implication?

One these initiatives extend Dhunseri Tea largely from one product (tea andtea-centric) to multiple revenue-drivers.

Two they strengthen our position as quality tea makers.

Three they enhanced our ability to leverage tangible (gardens) and intangibleassets (distribution) to strengthen the business.

Given this reality we are optimistic of strengthening our credentials as a relativelycounter-cyclical company with a larger number of drivers that enhance revenues marginsand shareholder value across the coming years.

C.K. Dhanuka

Chairman