On A Date with Tanganda Tea Company

Sun Feb 13 22:52:21 CAT 2022

On A Date with Tanganda Tea Company

 <mailto:bulls at bullszimbabwe.com> 

#1. History

1910, Ward Brothers buy New Year's Gift Estate and start farming.

1924, A box of tea seeds is smuggled out of India by Phillips' wife Florence. 

Grafton Phillips is a retired tea planter who forms a partnership with Arthur Ward to grow tea.

1925, Experimental tea planting is done for the first time in Chipinge District.

After a number of failures, the decision to irrigate the tea crop results in success.

The success inspires the formation of Ward & Phillips (Pty) later Rhodesia Tea Co.

1930, Incorporated in Zimbabwe and purchase of Ratelshoek Estate.

1934, change of name to Rhodesia Tea & Coffee Estates Limited (RT&C).

1943, Thomas Meikles Trust acquires 53% of RT&C. A year later Jersey and Zona Estates are bought.

1949, Company changes name to Rhodesia Tea Estates.

1963, Listing on the Rhodesia Stock Exchange now ZSE.

1974, the name Tanganda Tea Company is adopted.

2007, Delisted from ZSE to become part of Kingdom Meikles Africa Limited.

2021, Relisted on the ZSE by introduction.

#2. Operations

Tanganda Tea Company is a grower and producer of,

1. Tea

2. Coffee

3. Avocados

4. Macadamia Nuts

5. Bottled Spring Water

Tanganda operates 2 vital divisions (Agricultural and Beverage) though 3 including the administrative.

Agricultural Division

A total of 5 estates are owned by Tanganda covering +2600 hectares. 

*	New Year's Gift Estate (1910)
*	Ratelshoek Estate (1930)
*	Jersey Estates (1944)
*	Zona Estates (1944)
*	Tingamira (1990)

Beverage Division 

A tea blending and packaging plant in Mutare targeted for local and exports markets.

Sales and distribution depots are in Harare, Bulawayo, Gweru and Mutare.

The division has developed +10 brands of tea which have a ∆ market share.

#3. Competitors

The closest rival for Tanganda Tea in Zimbabwe is Ariston Holdings.

Ariston Holdings specialize in macadamia nuts, avocados and tea.

However, the fierce battle is on the export front with agriculturally advanced nations.

Tea

Key exporters are China, Kenya, Sri-lanka, India and Indonesia.

Avocados

Mexico, SA, Kenya, Rwanda, DRC and Cameroon are the top producers.

Coffee

It is produced by Brazil, Vietnam, Colombia, India

Macadamia 

The largest producer is South Africa

#4. Markets

Zimbabwe

European Union

United Kingdom

United States of America

Pakistan (Tea)

China

#5. Production

9,188 from 8,319 tonnes of tea produced @ an average export selling price of USD$1,39/kg from USD$1,44/kg for bulk tea.

650 from 855 in tonnes of macadamia nuts produced. Average price was USD$5,30 per kg from USD$4,99/kg.

2520 from 1907 in tonnes of avocados produced. The average export selling price was USD$0,84/kg from USD$1,73 per kg.

The period for the report was from April 1, 2020 to 31 March 2021 the comparable period was mostly 2019.

Covid-19 affected hospitality.

#6. Shareholding

Tanganda Tea Company was wholly (100%) owned by Meikles Limited until the relisting.

In the relisting existing Meikles shareholders received shares in Tangandain proportion to their Meikles Limited shareholding.

#7. Pitch

A diversified crop which helps cashflow for the business which was concentrated in the Tea peak season

Targeting to invest a total of 7.5 MW in solar power which insures sustainable farming with reduced costs

Network of out growers covering 1K ha

The contribution of high value (macadamia and avocados) crops is expected to rise to 60% of revenue by Mar 2022.

Yields of 4,500 kg per hectare in Tea are being achieved higher than Kenya a top African producer even China.

ZSE Trading Statistics

ZWL77.56 Share Price11 Feb 2022

YTD Gain 15.7%

20,248,257,920 ZWL Market Capitalisation

Each week will be on a DATE with a company listed on the ZSE with Martin Mataga Twitter @MartinMataga. 

The purpose of this thread is to assist investors to have a minimum appreciation of listed firms. 

Disclaimer: Do not misconstrue this thread as investment advice. DATE companies before you buy their shares.

Invest Wisely!

Bulls n Bears 

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