WRITTEN BY CHRIS DAVIES
Even though McLeod Russel Uganda is part of the world’s largest producer of tea, the company remains committed to fundamental values like product quality, employee happiness and community welfare.
AN Infusion OF QUALITY,
COMMITMENT AND SUCCESS
McLeod Russel produces approximately 100 million kilos
of high quality tea a year from estates in Assam, West
Bengal, Vietnam, Rwanda and Uganda. Thanks to this
expansive footprint and over 90,000 members of staff, the company
is the world’s largest producer of tea.
Wanting to discover more about the company’s presence in
Uganda, we contacted General Manager Billy Singh, who told us
about McLeod Russel Uganda’s commitment to quality, its various
Corporate Social Responsibility initiatives, the latest technological
advancements that are improving production, and plans for the
future.
Facts and figuresMcLeod Russel Uganda Limited (MRUL) annually produces
approximately 16 million kilograms of black tea. The operation is
spread out over 6,700 hectares, of which 3,350 hectares is tea. The
company also has a 1,060-hectare eucalyptus plantation.
In addition to these areas, the company remains committed to
the local environment with 1,700 hectares of natural forest, which is
protected by the law of the land and home to indigenous species of
tree, wildlife and insects.
Since establishing its presence in Uganda, McLeod Russel has
spent over $9 million on upgrading factories, planting more tea,
constructing staff housing and developing welfare programs.
Quality commitment “We differentiate ourselves with the quality of our products,
attention to detail and concern for the sustainability of the business
and environment,” boasts Billy.
Along with Rainforest Alliance, Food Safety Management System,
Quality Management System and Environmental Management
System accreditations, MRUL received FAIRTRADE hired labour
certification for its Mwenge and Bugambe tea estates in early 2013.
As well as achieving the latest Gold Award for Tea in the President’s
Export Award (PEA), the organisation is also a member of the Uganda
Tea Association and the East Africa Tea Trade Association.
Employee development and welfare“We are the world’s largest tea producers but share the chairman’s
MCLEOD RUSSEL
There is an old saying that the entire British Empire was built on cups of tea. While this may not be strictly true, tea remains an incredibly popular drink around the globe.
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BEARINGS &POWER TRANSMISSION
people centric vision to care about the welfare of individuals who
work for us,” notes Billy.
To this end, MRUL spends around $500,000 annually on caring
for employees through various welfare services and entitlements.
On every estate, clinics are provided for employees and registered
dependents to receive medical services such as immunisation, family
planning and HIV/AIDS voluntary counselling and testing.
However, creating positive and favourable working conditions
is also of the utmost importance as Billy explains: “Taking the
business forward, we are committed to working in a safe, healthy
and professional environment. Employees have been sponsored to
engage in sports and drama competitions between estates. Trophies
are competed for on an annual basis.”
Despite having a staff compliment of over 6,000 people, MRUL
still finds the time and resources to educate employees. “We have in-
house training, as tea is quite a specialised business and there are very
few institutions where you could send managers to learn about the
industry,” says Billy.
“We also organise training programmes for human resources
development and specific areas of the business, for example
accounting and engineering departments.”
Operational expansionMRUL has completed the first stage of expansion in three of its
five factories, but upgrading facilities is an ongoing process according
to Billy. “This is a never-ending business,” he adds. “As new technology
comes in, we adapt ourselves and make them available to the process.
In recent years, more and more people have moved from rural
areas into towns and cities, which has resulted in a shortage of
workers for the labour intensive tea industry. However, technology
holds the answer for MRUL.
“We are pioneering the use of mechanical harvesters, which is
now well established and expanding,” notes Billy. “To harvest one
hectare of tea manually would need between 25 to 30 people. Two
machines can cover this ground but only requires six people.”
Even so, Billy is quick to assert that this is not removing or doing
away with the MRUL’s valued employees. “We can bring in technology
and increase the area we are covering rather than cut staff.”
Supporting the local economy and community
Even though MRUL remains focused on the happiness and well
being of its own employees, the wider community is also a prime
concern. Therefore, the company is involved in various Corporate
Social Responsibility initiatives and continues to put faith in the local
economy.
“We have an active CSR programme where we work with
communities to develop the primary schools in our vicinity,” says
Billy. Since 2011, four primary schools have been allocated around
$12,000 each to renovate classrooms and construct new buildings.
Although MRUL’s expansion project will increase capacity, it is also
an opportunity to work more closely with small farmers and holders.
The necessary equipment and investment required to process tea
is not adequately available to these individuals. MRUL is looking to
change that, demonstrated by the latest factory expansion projects
planned with consideration for small farmers.
“We believe the way forward is to be able to make crops beneficial
for our neighbours,” notes Billy. “If we expand our capacity, we can
take leaf from small holders and encourage tea plantations as an
income generation for farmers.
“We also believe that a steady engagement in this horticultural
practice can control deforestation and keep a focus on making a good
living from tea. This has both social and economic benefits.”
MCLEOD RUSSEL
Market conditions and future growthOver the past 6 to 7 years, MRUL has enjoyed success in the
big East African tea consuming markets of the Middle East, Egypt,
Yemen, Pakistan and Afghanistan. “More and more people are
drinking tea now and the distribution systems are better organised
to reach new markets,” reveals Billy. “We are very optimistic about
the future of the product.”
Looking forward, MRUL is planning a steady production increase
of 1-2 per cent annually, so in five years time its yearly yield will be
in the region of 19-20 million kilograms of tea. Although capacity
expansion is important, increasing the brand’s reach and reputation
remains vital according to Billy.
He explains: “What we are currently working on, and have
been for the last three years, is up scaling our quality profile.
Unfortunately, over the years Ugandan tea has been relegated to a
poor price against products from Rwanda and Kenya. So with our
investment and technology we are looking at upgrading the quality
profile.”
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