roject Report on Purchase of Tea Estate

1. Introduction

Tea plantation in India has been contributing significantly towards the socio economic development of the people of the tea growing regions of the country. Tea
industry contributes substantially towards the national and state economy by way of enriching the foreign exchange reservoir and State exchequer besides
employment. Today the major tea growing states are Assam, West Bengal, Tripura, Tamil Nadu, Kerala and Karnataka. Himachal Pradesh and Uttaranchal
are also traditional tea growing states, albeit to a less significant extent. Besides, tea plantation has come up recently in states like Arunachal Pradesh,
Manipur, Sikkim, Nagaland, Meghalaya, Bihar, Orissa, etc. Mizoram also has the potential for development of commercial tea plantation.

[Link] Summary (Promoter’s Profile​)​

A Tea Planter with over three decades of experience in Working and managing Tea Estates in Dooars and Terai region is willing to purchase a Tea Estate in
Dooars (West Bengal) and hence looking for suitable investors who can invest in this project.

The desire to become tea entrepreneur stems out not only because it is a profitable venture , it is also because of belief of giving back to the people who put
all their effort to keep their garden in good shape. The present Closed/Locked out/Sick status of garden is purely as a result of mis-management. This has
economic repercussions in this labour intensive industry. Through this venture we want to bridge this gap and provide an able and effective management
whose flag bearer knows tea inside out. The Future Goal in create a chain of gardens and trying to get the closed garden open by taking over them.

Details of the Tea Estate proposed to be purchased

STATISTICS

Company McLeod Russel

Area Dooars
District Alipurduar
Total Grant Area (Ha) 581.32
Area Under Tea (Ha) 205.32
Total Crop (KGs) 300000
Workforce 499
Project cost 5.50 Cr

2.1 Garden Profile

ChuniaJhora Tea Estate

Known for its natural beauty, ChuniaJhora Tea Estate is situated at 490 ft in the foothills of Bhutan ,
Surrounded by the Buxa Tiger Reserve Forest, which is famous for its Biological diversity, Anthro-
Pological Diversity and Eco Tourism.
[Link] Business​

The business will start with purchase of tea garden and initially income will be primarily by selling Tea Leaves to other Tea estate having
manufacturing facility. Once settled, We will set up our own manufacturing facility which in turn will have better Return on Investment.
Vast experience of working in this field will be leveraged in efficient utilization of the available resources in attaining best results.
Investment is primarily required to enable us to purchase the Estate and towards initial working capital requirement.

2.3 The Market

Tea is one of the world's oldest drink known with India, the largest producer. West Bengal contributes significant in the overall production
of tea in the country. Tea has always found its market in Good times and in Bad times. Few Tea Garden in West Bengal have failed in
recent years but the primary reason for failure is not the crop production but the due to lack of administration and owners not replenishing
the cost involved in production making them sick unit. This is evident from the fact that a garden in Locked out while another garden in
its benefit is producing good crop. The closed/sick garden has further scares up the tea supply making the investment more lucrative.

2.4 Progress

The Negotiation is in initial state and this is not yet finalized. we are planning to form a company soon to take up this [Link] have
started early to look for investor to enable us to catch up this season harvest if we are able to strike a deal with an interested
[Link] season for tea is from July to December and this is this time when almost 85-90 % tea leaves are plucked given maximum
income.
As tea Garden for which we are negotiating at present has a well set up infrastructure, taking off once the ownership changes can start
almost immediately and there will be not waiting period for the income to start.

2.5 Details of Tea Leaves production at Chunia Jhora Tea Garden is as follows

Year Tea Production (lakh kg)

2013-14 10.37
2014-15 11.65
2015-16 11.97
2016-17 11.69
2017-18 (projected) 13.08

2.6 Income from sale of Green Leaves

Year Made Tea Green Leaf Price per KG Income
2013-14 2,30,444 1036998 25 2,59,24,950
2014-15 2,58,912 1165104 25 2,91,27,600
2015-16 2,66,055 1197247.5 25 2,99,31,188
2016-17 2,59,913 1169608.5 30 3,50,88,255
2017-18 (projected) 2,90,760 1308420 30 3,92,52,600

Expense Head Wages/labour/per Total Expense Expense per Expense per Year
day per day Month

Labour Wages 160 500 80000 2400000 2,88,00,000

Transportation 3000 1 3000 90000 10,80,000
Spraying cost 2000 1 2000 60000 7,20,000
Electricity 800 1 800 24000 2,88,000
Miscellaneous 1000 1 1000 30000 3,60,000
Execute cost 10,00,000
Total 3,22,48,000

3. Technical Parameters for Tea Cultivation

3.1 Agro-Climatic Conditions

Well distributed rainfall ranging around 2000 mm to 5000 mm is considered suitable for successful tea plantation. The monthly average maximum temperature
ranging between 12​0​Cand 21​0​C during November to Februaryr, between 27​0​Cand 32​0​C from March to [Link] Dooars Region is blessed by the twin
advantages of a temperature range of 20​0​C-32°C during the cropping season of March-October and an annual precipitation of 2300–2500mm of well
distributed rainfall, is ideal for tea cultivation.

3.2 Soil Conditions

Generally, sandy loam to silty loam type of soil with pH range of 4.5 - 5.5 is ideal for growing tea. Soil should possess a minimum 1% of organic carbon, 1-2%
of organic matter, 35ppm of P​2​O​5 and 80 ppm of K​2​O for successful establishment of tea. Tea plantation being a long term investment it is advisable that
before going for new plantations, soils may be tested in soil testing laboratory of the TEA RESEARCH ASSOCIATION at Nagrakata. As per Tea Board norms, soil
testing is mandatory for the planters to avail subsidy from Tea Board. Due care must be taken to collect the soil samples most methodically to represent the
section properly. Before collecting the soil samples, necessary advice may be obtained from the soil testing laboratory in this regard. Based on the soil
testing results, the necessary prescriptions by soil expert for improving the soil conditions, if any, may be followed to ensure the success of tea plantation.

3.3 Choice of planting materials:

Good number of clones have been released from various sources for using as the planting materials by the industry. Clones proven to be successful in a
particular locality and recommended by Technical Institutions only should be chosen by the growers. In ChuniaJhora Tea Estate, the choice of planting
material is of various types like ​TEENALI , TV 9 , TV 23 , TV 25 , TV 26 in CLONES. ​Assam​, ​Dangri ​and ​Manipuri in SEEDS ​along with STOCK 449 & STOCK 450
as Bi-CLONAL seed. ​This same high quality tea stock, having been propagated for the last century and a half, is till today the only raw material for all teas
produced in the valley.

For better yield and quality tea production, seed and clonal saplings should be used in 80:20 ratio. In order to have a proper mix of better yield and quality,
the standard clones and high yielding and quality clones should be used in the ratio of 70:30.
 
3.4 Source of planting materials

The sources of planting material must be very reliable. The quality of the planting material will primarily decide the health of the plants and to a great extent
the style of bush formation. The beneficiary may develop his own nursery or he may obtain the materials other nurserys.

3.5 Planting seasons

Planting of tea is done mainly during spring (June-July) after the first few showers of rain or in autumn (October-November) while the soil is still moist and
the area has irrigation facilities.

3.6 Land planning and Site Preparation

Topographical planning for laying out drains and bunds, culvert and plucking access would generally help in soil water management, easier supervision,
cheaper maintenance and better utilisation of mandays for weeding & soil workings, pruning, spraying, plucking, etc..After clearing the area / site of bushes,
the land need to be levelled or terraced in case of undulating topography. If site conditions permit subsoiling, ploughing and harrowing will improve the soil
surface for proper root growth and subsoil drainage.

3.​6 Drainage

For laying out drains, bunds, culverts, etc., topographical planning is helpful. The drain design, i.e. depth, width, spacing, etc. would be governed by the
topography, soil type, soil structure, etc. Waterlogging reduces the crop besides causing root diseases. Existing drains should be renovated as a routine
practice to keep them functional. Regular cleaning and desilting of drains to 90cm depth is desirable. Protection of drain-edges with vegetation is more
important than batter or depth.

3.8 Layout, Method of Planting and Spacing

Tea Board is recommending either single hedge row or double hedge row system/ method of the planning in the field. Various spacing norms are followed
by the industry. The advisable norms are 105cm X 65cm, 105cm X 75cm, 105cm X 60cm X 60cm, 105cm X 75cm X 60cm, etc for valley plantation. Recently,
there has been a shift from manual operations to mechanical filed operations due to labour constraints; a spacing of 120 x 60cm X 60 cm has been adopted
for this model scheme so as to accommodate mechanical operations. This will facilitates the convenience in field works, mechanized field operations
combined with higher plant population.

3.9 Pit digging and Refilling of Pits

After site clearance and layout, pits of 45 cm diameter and 45cm depth are to be dug at the designated spacing as elaborated above. Stones/ boulders, old
roots, etc. are to be removed from the pits. The soil excavated from the pits should be allowed to weather for some period before refilling. The soil should
be mixed with 40 gm of Murate of Potash (MoP) alongwith 2 to 3 kg of bulky organic matter or well decomposed FYM per pit.

3.10 Planting
Only well grown robust plants of 45 to 60 cm height with basal stem diameter of 0.5 – 0.8 cm and 8-10 leaves should be planted in the main field. Results
from the use of planting materials raised in sleeves are always better than those raised in [Link] polybags should be removed from saplings and it should
be planted in such a manner that collar of the saplings should be above the ground level. The soil around the sapling should be pressed hard. It needs to be
ensured that no depressions are left around the plants. Mulching should be done immediately after planting to avoid mortalities.
 

3.11 Planting of shade Trees

As shade is very important in tea plantation, shade trees need to be planted alongwith planting of tea saplings. In the initial years shade can be provided
through planting of suitable nurse crops. A leguminous crop is very much suitable in the first three years of planting. Green crops like Crotolaria are useful in
young tea areas and their seeds should be sown simultaneously with tea in lines. A spacing of 3.6m X 3.6m is suggested for the temporary shade trees. When
the permanent shade trees establish well, the temporary shade trees need to be [Link] a routine, the poorly shaded areas should be renovated by
planting new shade [Link] this, permanent shade should also be planted. The most suitable shade trees ALBIZIA , DALBERGIA [Link] shade trees
​ in site exposed to southern aspect and 10 m X 10 m in sites exposed to northern aspects. Later on
species should be planted at a spacing of about 6 m x 6 m
depending upon the canopy development, these shade trees may be thinned depending on the canopy size at maturity.

3.12 Mulching

Following planting, the area is thoroughly mulched preferably with grass, water hyacinth, citronella grass, etc. If paddy straw is used, 20 kg N/ha in the form
of urea is to be sprayed. Mulching materials may be collected from nearby forests also. Mulching helps conservation of soil moisture, prevents erosion,
reduces weed growth and adds organic matter to the soil.

3.13 Initial operations for training Bush after planting

Frame forming in the initial stages is very important to build up the bush to give higher productivity. The following operations are recommended for bringing
up of young tea, depending upon the season of planting as indicated :

Year# Operation
1​st​year(June-May) June-July- Plant tea.

2​nd​year(June-Dec) October- Finger prune/Decentre at 20cm from the ground & tip at 55-60cm.

3​rd​ year Keep UP Pluck over one leaf in the beginning.

year Cut across between 35-40cm and open up the centre selectively. tip over 25cm
4​th
 year Keep UP (1st UP year)
5​th
year Deep skiff / Medium skiff
6​th
year Keep UP
7​th
8​th​ year Light Prune 5-6cm above last cut across mark and tip over 25cm.

Thereafter, 4 to 5 year pruning cycle may be followed depending on the requirements and growth pattern. Considering the factors such as the growth and region of
growing tea and climatic conditions of the region, the sequence and type of different pruning operations stated above can be modified.
 

3.14 Tea Bush development- Operations/ Practices

Some practices stated below can be followed for encouraging the proper formation of the tea bush. Breaking the stem using thumb and forefinger 25cm
above ground in such a way that at least ¼th of the stem is remained intact. The dried broken branches can be removed just below the broken portion by
clean pruning using 7.5cm (3") pruning knife.

Decentre select between 15-20cm.

Debudding by nipping/removing all the growing buds from the main stem/growing shoots above 25cm from the ground. Once the branches below this
height are developed, the top debudded portion is removed by clean pruning using a 7.5cm (3") pruning knife.

3.15 Pruning

In general in Kangra region4 to 5 year pruning cycle is followed. A 4-year cycle for vigorous tea and 5-year cycle for average tea may be followed. While
forming a sound pruning programme, various factors need to be analyzed. These include: stage of growth of tea crop, crop distribution / canopy density,
annual fluctuations, incidence of pests and diseases, frame height, availability of labour, type of tea to be manufactured, availability of water for irrigation
andShade tree status.

Various Types of Tipping and Plucking

Type of prune Tipping heights

Medium Pruned (MP) 25-35cm from MP mark which generally comes between
50-65cm from ground.
Light Pruned (LP) On the average height of 5 leaves or 25cm whichever is
lower.
Deep Skiff (DS) Average height of 2 leaves between 7-10cm.
Medium Skiff (MS) Over 1 leaf, between 3.5-5.0cm
Light Skiff (LS), Level Off Skiff (LOS) Over janam*, raising the plucking table by a leaf on certain
and Unpruned (UP) occasions

* janam = When shoots on a bush start growing after a period of dormancy, small leaflets (cataphylls or bud scales) are first unfolded before the true leaves appear. These bud scales
are called janam (birth scales).

Normally, a 4-year pruning cycle of LP-UP-DS/ MS-LS-UP may be adopted in this area. The suitable time for light prune and deep skiff is between December
and mid-January and that of medium skiff between January and early [Link] plucking interval should be maintained between 7-8 days for quality.

3.16 Manuring

(a) Young tea manuring: (Manure YTD 2:1:3 mixture)

Year of planting/ 1​st​ year 5g YTD / plants, 3-4 times at 6-8 weeks intervals
2​nd​ year 10g YTD/plant, 3-4 times at 6-8 weeks intervals
rd​ 20g YTD/plant, 3-5 times at 6-8 weeks intervals
3​ year onwards
4​th​ year YTD Broad cast @130-150 kg N/ha

 
b) Mature tea manuring:

Nitrogen 130-165 kg/ha depending on the yield potential of an individual section

(average yield of the pruning cycle)
Phosphate 40-50 kg P​2​O​5​ /ha
Potash On the basis of soil analysis report where the soil potash level should be
minimum 100 ppm.

In addition to the normal, NPK fertilization, micronutrients like Zn, Mg, B etc., may also be applied as foliar spray for correcting the deficiencies, if any
observed in the field.

3.17 Weed control

In Kangra Valley various obnoxious weeds are found in tea gardens and adjoining areas. These include Parthenium, congress grass, lantana, Saccharum
grass,etc. Thus, for high productivity, effective control of weeds is very essential. Till the plants are about 1 year old, the young tea should be kept under
manual weeding. Thereafter, very careful use of herbicides like simazine, 2, 4-D, oxyflurofan, paraquat, etc. can help in keeping the young tea (2 years and
above) free from weed [Link] mature tea, herbicides like 2, 4-D, parquet, dalapon, glyphosate, simazine, etc., are useful for effective control of
weeds.

3.18 Pests and diseases control

Intensive management of pests and diseases is required particularly during the formative years for early establishment. The common pests like thrips,
greenflies and mites, caterpillar pests, crickets, cockchafer grubs and termites normally create problem during the early years. In mature tea also pests like
red spider, pink, purple and scarlet mites, thrips, helopeltis, caterpillars, termites, etc., cause a great deal of crop loss. Among the diseases, red rust is a
common one in young tea areas. In mature tea, besides this red rust, black rot, brown root rot, charcoal stump rot, blister blight, etc. are very common. It is,
therefore, absolutely necessary to control the pests and diseases by spraying appropriate insecticides and fungicides regularly.

B. Suggestions :-

  chalk out rehabilitation plan for ChuniaJhora Tea in coordination with Tea Board and all stakeholders
a. To