Dhunseri to Jay Shree Tea, Africa adds flavour to tea firms' profit margins

Production cost in Africa varies between $1 and $2 a kg while in Assam it is $1.9 and in West Bengal over $2

Even as tea companies in India are grappling with lower yields and an unfavourable cost structure, which are taking a toll on profitability, their operations in Africa have proved to be more remunerative and cost efficient. 

The overseas operations are helping firms like McLeod Russel, Dhunseri Tea and Industries, Jay Shree Tea and Industries and several others boost their margins.

Compared to the average margin of Rs 15-20 per kg from the sale of Assam tea during a good season, these companies are able to make a whopping Rs 40-90 per kg from sale of their produce in Uganda and