18 June, 2021

Ta-Ta To All That

A workers-led tea estate is thriving

Sabu P. Jose
Ta-Ta To All That
outlookindia.com
-0001-11-30T00:00:00+05:53

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...

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