Mcleod Russel to appoint consultant for packet tea biz

McLeod Russel, a part of the Williamson Magor group, would appoint a consultant for its foray into the packet tea business, an official of the company said.
"We are serious about entering the packet tea business. A consultant would be appointed shortly for this purpose", vice-chairman and MD of McLeod Russel India Aditya Khaitan told reporters here today.
Khaitan said that the consultant would advise them on how to go about it as it would be for the first time that the bulk tea producer was making such an attempt.
To start with, McLeod Russel would form a JV with a subsidiary of Eveready Industries.

Eveready, another Williamson Magor group company, had hived off its packet tea business into a separate subsidiary.
According to him, the subsidiary would source tea either from the open market or from McLeod depending upon the price.

Asked whether Mcleod would lend its brand name to the packet tea business to derive value, Khaitan said "the consultant would provide us with all the details".
He said, given the existing situation in the Indian tea scenario, the packet tea business would give the company a good hedge.
Talking about the present scenario, he said there was a shortage in supply of African tea following which market prices here were increasing.

Besides that, exports would also witness a rise this year, he said.
Mcleod Russel, which has tea gardens primarily in Assam, also owns estates in Africa and Vietnam.