Tea juggernaut looking for more acquisitions
McLeod Russel India Ltd., the world's biggest tea grower, plans to use rising prices to build a 'war chest' of as much as $250 million to acquire companies. After buying plantations in Uganda, Vietnam and Rwanda, the company is looking to buy more companies in India and Africa as it targets a 50% increase in production to 150 million kilograms in three to four years. McLeod Russel expects Indias demand for tea to rise 3.5 percent annually, outpacing the estimated 1.5% increase in production this year. Prices in North India, which accounts for 70% of the nations output, may rise as much as 15 percent as demand for the beverage grows and costs increase.