The Tea Party Is Here
- After the Tatas quit, workers take over the Kanan Devan Hills Plantations Company Pvt Ltd
- Five years on, share value has risen from Rs 10 to Rs 50
- The company paid 50 per cent dividend last fiscal
- Profits up from Rs 12.50 cr in 2008-09 to Rs 40.84 cr last year
Five years ago when Tata exited the tea plantations in Kerala, workers took over and set up a new model. In a smooth transition, they picked up 69 per cent stake in the Tata-promoted Kanan Devan Hills Plantations Company Pvt Ltd (KDHP). Since then, year on year, KDHP has recorded high growth figures of production and profits. The company even disbursed a dividend of 50 per cent in the last financial year. The dividend rate rose from 14 per cent in 2005-06 to 25 per cent in 2008-09. Which means that an average worker, who invested Rs 3,000 in 300 shares at Rs 10 a share five years ago, has by now got more than his investment back. An...