HVA to Set up a Unique Tea Extraction Plant. Explores New Markets with Tea based Products

30th December 2010, www.dailynews.lk, By Charumini De Silva

HVA will set up an unique tea extraction plant, one of its kind in Sri Lanka with an investment of Rs 100 million.

HVA Lanka Exports Chairman Rohan Fernando told Daily News Business the company plans to invest Rs 100 million to upgrade the tea extraction plant to a high end commercial venture, Heladiv Innovative Centre, as well as increase the capacity in the tea packaging factory.

The company is planning to officially open the commercial venture Heladiv Innovative Centre during the first quarter of next year.

The tea extraction plant is a novel concept to Sri Lanka as there are no such extraction models available in the country.

HVA is expecting to achieve a 10 to 20 percent growth compared to this year’s performance. “We are targeting to be in a strong and an enviable position on tea exports by mid of 2011,” Fernando said.

The company is fully focused on expanding businesses, while upgrading manufacturing and increasing the capacity.

HVA is expecting to capture new markets with tea based products such as iced tea, body care, horticulture, pharmaceuticals and other healthcare products, as the demand for tea based healthcare products are increasing rapidly and it is a niche market.

Fernando said there are many opportunities to develop new products based on tea. However, most industrialists engaged in the tea industry have not thought of this side as they have only focused on traditional tea export markets.

“Value-added tea products have a huge potential in the international arena. HVA has done research and development on, product profiles, feasibility studies on markets and the consumer behaviour,” he said.

They are also planning to launch a tea boutique franchise in Colombo under the tagline of Heladiv Infini-t. The company has high end tea products in Heladiv tea parlours in China, which caters to a wide range of customers. “The tea parlours in China is a successful business concept of Heladiv and we want to develop a similar atmosphere with Tea boutique concept in Sri Lanka and worldwide,” he said.

At present the company is looking for an ideal format of locations to setup these tea boutiques. “We expect that this concept will emerge in Sri Lanka well in 2011,” Fernando said.

HVA Foods Ltd, a subsidiary of HVA Lanka Exporters will open the Initial Public Offering (IPO) on January 12. The company is all set for the IPO, while expecting that it will have a good response from the public.