The globe's biggest tea cultivator McLeod Russel is preparing to start up a tea blending component at Dubai. The component will supply mainly to customers in CIS and Middle East regions.

McLeod Russel managing director Aditya Khaitan said that, "Sourcing tea from single line [single region] is getting costlier for the buyers and hence in a bid to add value and to be cost competitive we have decided to offer blended tea to our buyers."

Khaitan claims that the company is considering at blending tea from Africa, Vietnam, Dooars and Assam and provide a one of a kind blend at a cheaper amount and yet maintain a stable quality.

He said that “We are thinking of setting up the blending unit in Dubai because that is the multi-origin set-up. We now need to add value to what we have instead of just selling tea. It’s a new product we want to give to the market.”  The company is looking forward to begin the blending unit by October-November this year.

For the meantime, plagued with pest attack and rain the company is predicting a drop in manufacturing by 3 mkgs in 2010-11. Khaitan said that, "During the month of May and June we have lost about 3 mkgs of quality tea from Assam, so domestic production by the end of this fiscal would be in the region of 77 mkgs."

Previously, the company issued a statement announcing a drop in the net sales during the first quarter of 2010-11. Net sales was at Rs 122.45 crore for quarter ending on June 30 in contrast to Rs 120.81 crore for the similar period of the last financial year. However net gain of the company dropped by almost 40% to Rs 18.85 crore through the first quarter of the present financial year.

Khaitan said that, "During May-July, we produce the best quality tea, which is largely exported.