Ceylon Tea Brokers (CTB) says that its market share based on the volume of tea sold has gone up from 6.60% to 8.77% during the financial year 2010/11, while the value of tea sold has seen its market share stand at 8.91%.
“This is significant because it indicates a high quality catalogue, which has been our goal from the inception. In order to achieve this we took several steps including increasing our staff strength so that each factory received undivided attention and very close monitoring at all times. We found that this focus helped all our clients to not only increase the quality of tea produced, but the resultant increase in the prices obtained at the auction, also helped to increase the quantity produced and their productivity, thereby improving their bottom line as well,” Ajith Fernando, Managing Director CTB has said in his annual report.
He further stated that CTB has a 12.5 % share in the low grown category which has more representation of Private Tea Factories. “Therefore going forward we intend to try to have a better representation of marks from Regional Plantation companies as well,” Mr. Fernando said, adding that the company will try to have to strengthen its high and medium tea in a bid to be able to offer the buyers a complete range of high quality tea.
He has noted that the growth in CTB's profit has been good and the company wants to keep up the momentum by further cost consolidation. “Essentially the infrastructure and capacity of the company at present can easily handle a higher volume of tea and considering that the bulk of the cost are fixed, and increase in volume would have a direct impact on the bottom line of the company.”