In an interview with CNBC-TV18, Kamal Baheti, CFO of Mcleod Russel said that trying to sustain last year's 28% margin would be a challenge since tea is a seasonal industry. He is confident, however, to see margins touch 33-35%, a jump of around 4-5% due to higher production and prices.
Lower domestic production coupled with production cuts in the African continent, especially, from countries like Kenya which has seen a drop in output of 37 million kg, has led to price rises in India.
Mcleod Russel produces around 80 million kg in India.
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