Heat wave conditions and drought in tea growing areas in South India have hit production of the tea crop by about 10 per cent, according to planters in the region. South India accounts for 20 per cent of India's total tea production of 1,200 million kg. "April-May is one the peak season for tea production. Whatever we lose in April-May is very difficult to make up," said Peter Mathias, former president of UPASI and a tea producer in Karnataka.Mcleod Russel Ltd, is one of the largest tea plantation companies in the world and produces around 100 million kg of tea a year from its estates in Assam and West Bengal and other estates in Vietnam, Uganda and Rwanda.
In another significant development, the B.M. Khaitan Group-controlled Williamson Magor Group announced a major recast of engineering companies in its fold to consolidate its operations. The major companies in the Williamson Magor Group are dry-cell battery maker Eveready Industries India Ltd, bulk tea producer Mcleod Russel India Ltd and the engineering companies.
The scrip closed at Rs.183.55 in the BSE. I am expecting the stock to cross Rs.195 at the end of this week. Those who have bought this share, can keep accumulating, on all dips. The company is coming up with Q4FY16 results on 30 May, 2016]