Jay Shree Tea and Industries may quit sugar business

Jay Shree Tea and Industries today said they might sell their sugar business which contributed 21 per cent to their turnover last fiscal.
"We might dispose it of. We have started talking but no one is interested at the moment. Sugar industry is not doing well at present. Buyers are expected to take interest only after when the industry experiences a good year," company's managing director D P Maheswari told reporters here.
He said if the sugar business made profit they would continue with it but the main company should not be affected by the sugar business.
Tea accounts for a majority 66 per cent of the B K Birla group company's business while they are also into the manufacture of sugar, chemicals and fertilisers.

The company official said the board of directors have decided to hive off their sugar business to a wholly-owned subsidiary with effect from April 1, 2016.
"The scheme has already been finalised. Everything is done. The final approval is to come from the high court. The next hearing is on August 8 and we hope we will get the approval," he said.

Jay Shree Tea is also exploring new markets for exports and acquisition of tea gardens in Assam.
"We are looking at new markets including Europe, Australia, South and North America and getting orders from new ones," he said.

The company exported tea worth Rs 76.56 crore in 2015-16 as against Rs 84.73 crore last year.
Due to adverse weather conditions, its tea production was down by 9 million kg by end of May and is expected to be lower by 15 million kg by end of July, Maheswari said.