Tea factory expansion:

Fairy Mount Group Morawaka to invest over Rs. 350 mn

Shirajiv Sirimane in Morawaka

Fairy Mount group of Morawaka, is looking to invest over Rs. 350 million for their tea factory expansion and also for re planting.

The group is also looking at entering the tourism sector as well. Managing Director of the Group, Piyal Vidanapathirana told ‘Daily News Business’ that they needed to purchase new machinery to up grade their factory to move with the trends.

“We are looking at new machines and hope to invest around Rs. 200 million on that,” he said.

Currently, their factory in Morawaka producers around 40,000 kilos per month and with the new machinery production would increase and they would be able to launch new varieties.

In addition, the group is also looking at launching a new brand, ‘Singharaja’ tea mainly to the local market. “This would materialise early next year.” He said that the company Chairman, Wimaladharam Vidanapathirana (father), had recently acquired a 98 acre tea plantation along with a bungalow and they would replant this as well. “We hope refurbish this bungalow and diversify to the leisure sector,” he said.

The group had already replanted 20 acres and the balance would be done next year. The Fairy Mount factory built in 1998 with an investment of Rs. 70 million, today processes nearly 200,000 kilos of tea. “Our own supply of ‘green leaf from out estates is around 25,000 and we purchase over 160,000 from tea small holders,” he said. As a matter of principle, we do not purchase ‘green leaf’ from middle men,” he added.

He said that the globe recession is having a negative impact in the industry and the high transport cost too hampers their operations. “It costs us Rs. 17,000 as transport cost to send a lorry load of tea to the auctions and it would be a timely idea if the authorities reduce the highway lorry ‘toll’ which is now Rs. 1,500 for a single journey.”

The other three directors of this family owned venture, are his brothers, Mashesh, Percy and Dinesh.

Tea being unloaded at the tea factory	Workers at the factory