Kanco Tea & Industries Ltd Company Summary

Kanco Tea & Industries Ltd Summary

Kanco Tea & Industries Limited, was incorporated in February, 1983. The Company is engaged in plantation, manufacturing and sale of black tea business, only catering to domestic market. The Tea Industry is divided into two segments viz, top quality segment and medium & low segment. The company purchases green leaves from outside suppliers and produces it under a different mark called Lakmijan to protect its own mark Mackeypore. It processes the bought leaves separately from its own leaves. The physical segregation of own tea leaves and bought leaves manufacturing process is clearly visible. The Company is vulnerable to volatility in selling price of tea made from bought leaves.Apart from this, the companys tea estates, Mackeypore and Lakmijan, annually produce about 2 million kilograms of tea. The total area under cultivation is 1136.76 hectares. Both the tea estates are located on the south bank of the River Brahmaputra. This region is known as the Quality Belt region of Assam. The tea processing factory at Mackeypore Tea Estate has an installed processing capacity of 2.5 million kilograms of black tea. The factory machineries are fully upgraded and most of the manufacturing processes are automised.In 2016-17, the Company acquired Bamonpookrie Tea Estate from Ryam Commerce & Plantations Limited through Business Transfer Agreement dated March 29, 2017. The Company created a milestone by acquiring Bamonpookrie Tea Estate in March, 2017. Separate manufacturing line for tea made from bought leaves was commissioned in July, 2017. Separate manufacturing line for manufacture of Orthodox Teas in Bamonpookrie Tea Estate also commissioned in May, 2019. The food safety system and the quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirement of ISO 22000:2018 Food Safety Management. Moreover, the quality management system of Mackeypore Tea Estate has been assessed and found to meet the requirements of ISO 9001:2015.