Tata Tea, the world’s largest integrated tea company, has decided to revive plans to acquire tea gardens in Africa.

The acquisitions are meant to better synergise operations between Tata Tea and Tetley. The company, following the acquisition of Tetley, plans to enter new markets and the plantation acquisition drive is to push volumes in the new markets.

RK Krishna Kumar, vice-chairman of Tata Tea, said: "We are eyeing acquisitions of tea estates in Africa. We buy significant quantities from Africa, but in view of the rising prices there, the acquisition of tea gardens is a more viable option."

Labour costs are also around 50-55 per cent lower in Africa, he added. Krishna Kumar added Tata Tea, along with Tetley, will focus more on the US market as consumers there are slowly shifting towards tea.

On the other hand, the UK market, the world’s largest, has saturated. The two will also focus on new markets in Russia, Poland and West Asia.

Tata Tea and Tetley are present in these countries in a very small way, but growth potential is enormous.

For its requirements, the combine will source tea from Tata Tea’s south Indian and Sri Lanka plantations. In India Tata Tea will launch some of the Tetley brands, but only in the premium segment, he said.