Brown plantations' annual tea production exceeds 100 million kilograms

The acquisition of Finlays Kenya and Lipton tea by Brown Plantations has boosted the company's annual production by 85 million kilograms of tea, establishing Brown Plantations as the largest producer of tea in the world.

Kapila Jayawardena, the Managing Director/CEO of LOLC Holding Group, stated that the Group has firmly positioned itself in the global tea industry, now holding the title of the largest tea producer worldwide.

Brown Plantations produces approximately 100 million kilograms of tea each year, with around 17 million kilograms sourced from Sri Lanka and 85 million kilograms from overseas operations in Kenya, Tanzania, Rwanda, and China.

The company has set an ambitious target of reaching a total global production of 150 million kilograms within the next few years, with a sustainable upper limit for the Sri Lankan tea industry estimated between 200 and 250 million kilograms.

Jayawardena highlighted that Kenya produces more than twice the volume of tea compared to Sri Lanka, but the export income remains lower.

This situation raises concerns regarding the risk of overproduction, a scenario that Sri Lanka has successfully avoided.

"As a significant player in the Kenyan tea industry, Browns is actively engaging with stakeholders to address this issue and explore how the Kenyan market can adopt a more value-driven approach.

This would involve following Sri Lanka’s example to enhance export earnings rather than merely focusing on volume," he explained.

Browns Plantations is also assessing real estate development opportunities in Africa by converting underutilised plantation properties.

"Land must be utilised to its fullest potential, and we need to consider the best use of the land," Jayawardena emphasised, adding that underutilised land is of no benefit to any country.

While no structural changes have been implemented in the recently acquired Lipton and Finlays plantations, the company is committed to a holistic evaluation of land use, balancing agriculture with responsible and economically viable diversification where appropriate.

He noted that Browns Plantations will continue to expand its operations across Africa, Asia, and South America within the tea industry.

In May 2023, James Finlays announced an agreement to sell its James Finlay Kenya tea estates business to Browns Investments PLC.

This sale includes all segments of James Finlay Kenya Ltd, except for the Saosa tea extraction facility, which will remain under Finlay’s ownership.

The business will continue to source leaf tea, timber, and other services directly from James Finlay Kenya, ensuring uninterrupted service for existing customers.

Browns Investments PLC was chosen as the approved buyer due to its strong legacy of fostering growth in its tea estates while prioritising sustainability and support for its workforce and local communities.

Browns is a highly successful, diversified conglomerate and part of the LOLC Holdings PLC group, which is one of the largest and most profitable listed corporations in Sri Lanka.

Headquartered in Colombo, the company has a proud heritage in operating plantation businesses, owning Maturata Plantations, Hapugastenne Plantations PLC, and Udapussellawa Plantations PLC.

It is one of the largest tea-producing companies in Sri Lanka, comprising 49 individual estates that cover over 30,000 hectares and employ more than 10,000 individuals.

James Finlay Kenya marks Brown’s first investment in the Kenyan tea industry, which is viewed as an exciting opportunity for future growth.