Jay Shree Tea and Industries, a BK Birla Group company, is planning to acquire gardens in African countries like Kenya and Uganda.

BK Birla, chairman of Jay Shree Tea, said that the company was unable to find suitable gardens in India. Hence, it was looking at African countries. If the acquisition plans become successful, it would be the Kolkata-based company's first overseas buy.

Kenya is one of the major tea exporting nations. Tea produced in Kenya is of high quality, blackish in colour and has a very strong aroma, officials said. The company has appointed some bankers like ICICI Bank to identify gardens in Africa having a combined output size of 15-20 million kg annually, Birla said.

Jayashree Mohta, Jay Shree Tea director, has said the company hopes to increase its tea output to 23 million kg this fiscal from 21.8 million kg in 2008-09. However, the company's tea exports are expected to dip more than 50 percent to Rs 30 crore this fiscal due to falling demand in European markets. Last year, its exports stood at Rs 65 crore.

DP Maheswari, Managing Director of the company, said average tea prices during the year would be about Rs 22 per kg, higher than the previous year. He predicted a deficit of 30 million kg in the country by the end of 2009-10.

In 2008-09, Jay Sree Tea's total output stood at 21.8 million kg as against 18.5 million kg in 2007-08. This includes the 1.13 million kg produced by Jayantika Tea, which was merged with Jay Shree in 2008-09.

Jay Shree Tea has gardens in Assam, Cachar, Darjeeling, Terai and Dooars, and Tamil Nadu.