Tea Plantation

Acquisition of Largest Private Single Tea Estate in Indonesia

Tea Estate Overview:
The tea estate was founded in 1902 by a Belgian family and in 1984 it came into the Holding group. It is the largest private single tea estate in Indonesia owing an HGU (“Cultivation right”) of 2052 hectares, which next renewal comes in 2023. It has the unique feature that green leaf is 100% hand plucked. The plantation covers over 1700 planted hectares and employs about 2000 people. Estate has established its own tea brand and command premium prices in export markets. Around 3,000 tons of tea is produced annually.


Key Features:
  • Well established tea plantation and manufacturing facility, first incorporated in 1902
  • 100% Hand plucked Tea Estate
  • Brand has a good reputation into the black tea markets
  • Availability of 2052 ha of HGU, of which 1780 planted ha, in only two close blocks of land
  • Stable experienced management, trained staff and a large and loyal pool of workforce
  • Elevation and location giving unique quality and taste
  • Suitable agronomic and climatic factors for tea
  • High percentage of quality clones
  • Coal firing giving low processing cost
  • Hydropower giving free electricity
  • Trading with well-known buyers, Unilever amongst others
  • Certifications recognized in the international tea market
Commercial Market: Pakistan & Afghanistan are the prominent market but there has been increasing demand in local market as well. In 2018, 16.75% of the produced quantity remained in Indonesia and the majority of that quantity was covered under a long-term contract with Unilever. Unilever also bought 10.87% of this tea for delivery to various hubs (Dubai, Russia, Poland, Malaysia).
Proposal: The Holding Company is a Belgium agro-industrial Company listed on NYSE Euronext Brussels. The company has been focusing on oil palm business for past 10 years and therefore, this separate tea operations are no longer considered to be part of the core business in Indonesia and the company is willing to sell it.