Tea Importers Inc. has sold its majority interest in the Sorwathe Tea Estate and factories in Rwanda to an affiliate of Luxmi Tea of India.
Andrew Wertheim, owner of Connecticut-based Tea Importers, announced the sale. He writes that Sorwathe supports over 6,000 smallholder tea farmers and employs nearly 2,500 workers in the factory, fields, and forests. Sorwathe was the first tea factory in Rwanda to manufacture orthodox and green tea.
Wertheim said selling his controlling stake in Sorwathe is a strategic move that will positively impact the local community. The sale will bring synergies for Luxmi customers buying Sorwathe teas produced in factories in Gisovu, Pfunda, and Rugabano, he writes.
Rudra Chatterjee, Managing Director, Luxmi Group, commented: “We hope to build on the work the Wertheim family has done to enhance Sorwathe’s quality and improve realizations for smallholder farmers.” Luxmi currently operates 25 tea estates.
“In Gisovu, Pfunda, and Rugabano, farmer incomes have increased due to better price realizations,” writes Chatterjee, who also chairs the Silverback Tea Company – a joint venture between The Wood Foundation Africa and Luxmi Estates.
In 2019, Luxmi invested $30 million to expand the Rugabano Tea Factory in the Karongi District in Western Rwanda. By 2029, the factory will ramp up processing capacity to 4,000 metric tons annually, mainly for export. Rugabano cultivates 438 hectares and processes green leaf from smallholders cultivating 4,000 hectares.
In 1972, the Government of Rwanda invited Andrew’s father, Joseph Wertheim, to build a tea factory in Kinihira in Rwanda’s Northern Province. A joint venture agreement was signed in 1975, with US investors owning 51% and the Government of Rwanda 49%. The first stage of the factory was completed in the fall of 1978, and the first tea was sold at a London auction in February 1979.
Sorwathe is Rwanda's largest single-producing tea factory. The country ranks fourth among Africa’s 13 tea-producing countries. The estate and factories are internationally recognized leaders in Corporate Social Responsibility and have received numerous awards. “We are excited about the change, and the employees are looking forward to it,” writes Sorwathe Director General Manik Weerasinghe. He said he is leaving his post and returning to Sri Lanka.
“We believe Luxmi Tea Company will carry on our commitment to improving lives through tea while making the needed investments to expand Sorwathe's production capacity to the next level as the crop increases,” writes Wertheim.
In a letter to customers announcing the sale, Wertheim concludes, “It has been almost 50 years since we started in Rwanda, and the decision to leave was not easy. Sorwathe has been a big part of our family. It was our father's passion as well as ours. We hope you all will continue to support Sorwathe under the leadership of Luxmi Tea Company.”
The sale price was not disclosed.