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

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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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AN Infusion OF QUALITY,

COMMITMENT AND SUCCESS

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