Agarapatana Plantations Limited – Carrying the Legacy of Ceylon Tea into the Modern World

As we celebrate World Tea Day, it is also an occasion for us at Agarapatana Plantations Limited to reflect upon the remarkable history of tea in Sri Lanka. It is a story of survival, resilience and adaptation. Today, we stand as proud torchbearers of this historic legacy, committed to continuing the journey of Ceylon tea in the modern era.

Reflecting on the History of Ceylon Tea – A True Survival Story

The year was 1824 when the first tea plant arrived on the shores of Sri Lanka, brought by an individual or a group associated with the British East India Company. Initially, this novel addition went unnoticed amidst the flourishing coffee industry, which was the economic backbone of British Colonial Ceylon. However, fate had different plans for our fields.

As the 1870s approached, disaster struck the coffee plantations. A devastating blight ravaged the once-thriving coffee industry, leaving it in ruins. It was at this pivotal moment in history that James Taylor, a visionary Scotsman, embarked on the daring mission to cultivate tea commercially in then-Ceylon in 1867. With a mere 19 acres of land on the Loolcondera Estate, Taylor embarked on a journey that would forever change the course of Sri Lanka’s agricultural history.

James Taylor’s tireless efforts bore fruit, quite literally, as he established Ceylon’s first-ever tea garden and experimented with various manufacturing methods. His veranda became Ceylon’s first-ever “tea factory”, and in 1872, he sent the first shipment of Ceylon tea, a modest 23 pounds, to the London Tea Auction. This marked the birth of the tea industry in Sri Lanka.

Speaking of historical pioneers of tea in Ceylon, one of our most prominent holdings is, in fact, the Dambatenne Estate, which was originally owned and developed by the legendary, Sir Thomas Lipton, for over forty years, from the late 1800s to the 1930s. One of the iconic spots within the estate is “Lipton's Seat,” a summit perched on the edge of a sheer descent of nearly 5,000 feet, offering a breath-taking 360-degree view. A memento of the bygone era is still present here, in the form of a seat that Sir Thomas Lipton once used to admire the view.

The tea produced at Dambatenne by Sir Thomas Lipton was even served to a number of esteemed royal guests, who visited his estate mansion. This longstanding association with Lipton continues to this day, with Unilever, the holder of the Lipton brand, still purchasing tea from Dambatenne Tea Factory, which is sent to the Colombo Tea Auction under Garden Mark, “Bandara Eliya”, and this tea is still used in blends of Lipton Tea.

Sir Thomas Lipton was renowned for developing the first consistent brand of tea, with Michael D'Antonio, author of “A Full Cup” remarking, “He really developed the first consistent brand of tea that was the same from package to package, from location to location, every time you bought it.” One of the ways Lipton promoted Ceylon tea in Sri Lanka was through the slogan, “Direct from the Tea Garden to the Teapot”, which was used for several years to popularize his Lipton Tea.

Ceylon: An Island of Many Flavours

The unique soils and climates of our island proved to be perfect for tea, propelling its rapid growth and transformation. From a humble 19 acres in 1867, tea plantations expanded exponentially to nearly 400,000 acres by 1899.

The late 1800s witnessed the industry coming of age, with the formation of the Colombo Tea Traders’ Association, the Colombo Brokers’ Association, and the Ceylon Chamber of Commerce. The first tea auction in Colombo took place in 1883, a significant milestone that laid the foundation for the thriving tea trade we see today. In fact, the Colombo Tea Auction grew to become the world’s largest single-origin tea auction centre, a position it still retains to-date, symbolizing our nation’s prominence in the global tea market.

Carrying the Legacy Forward

Today, Sri Lanka stands as the world’s second-largest exporter of tea, in terms of USD revenues (2021), with Ceylon Tea holding a cherished place among discerning tea lovers, worldwide. At Agarapatana Plantations Limited, we take great pride in our contribution to this illustrious and historic industry, that continues to thrive today, against all odds. In FY2022/23 we achieved our most profitable year to-date, with a net profit before tax of LKR 2.37 billion. This success can be attributed to strategic initiatives, process improvements, and investments in infrastructure and technology, adapting to changing times, as the tea pioneers did.

Agarapatana Plantations Limited has strategized innovative approaches by embracing mechanization as a vital solution to address the dearth of planation labour. Since privatization in 1992, our workforce has significantly reduced from 21,000 to 9,000. Recognizing the need for innovation, we have hired a team of innovators to drive mechanization forward. Today, approximately 20% of our fields are harvested by machines, with a target of reaching 30% by the end of the current season.

Mechanization has also brought other tangible benefits, including increased productivity and the ability to cultivate previously inaccessible areas. We remain committed to this path, ensuring that our workforce receives the necessary upskilling and training to adapt to this modern era.

“To stay at the forefront of the tea industry, we will soon be officially announcing our Initial Public Offering (IPO). This significant step will provide an opportunity for investors to become an integral part of our exciting journey. We have completed all the necessary formalities and filings with the appropriate regulatory bodies. Having received authorization from the Securities and Exchange Commission of Sri Lanka (SEC), we now await the green light from the Colombo Stock Exchange (CSE). In due course, we will provide further insights into our forward-looking strategies and growth projections.”

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Towards a Brighter Cup in the Future through Tea Tourism

Looking ahead, we are also excited about the emerging opportunities for Agarapatana Plantations Limited. Situated in the scenic Haputale region, our estates form a part of the renowned Pekoe Trail, attracting tea enthusiasts and tourists from all over the world. Their proximity to captivating attractions like World’s End, Devil’s Staircase, Bambarakanda Falls, and Lipton Seat adds an extra layer of allure for visitors. 

To take advantage of this, we are actively exploring avenues for value addition through tourism, with plans to renovate our bungalows and create chalets for visitors. Tea tourism represents a niche that we are eager to explore, envisioning a fusion experience that combines the rich heritage of Ceylon Tea with the natural beauty of our island.

The Legacy Lives on in Every Cup

As we reflect upon the remarkable journey of Ceylon tea, from its humble beginnings to its global stature today, we remain steadfast in our commitment to preserve and propel this legacy forward. Agarapatana Plantations Limited embraces the challenges of the modern world while staying true to our heritage. We are confident that, with our dedicated workforce and the resilience ingrained within us, as a business and as a major stakeholder in this art of pioneers, the future holds boundless opportunities for Ceylon tea. So, as we mark World Tea Day 2023, let us raise a cuppa in celebration of our past, and towards a future filled with optimism and inclusive prosperity.