Issue link: https://read.dmtmag.com/i/491368
STiR tea & coffee industry international 65 Participatory management The unique role labor plays in operating KDHP's tea estates offers hope for the future of plantations. KDHP is the first large-scaled tea plantation to implement a formal- ized participatory management that involves a large number of employees from every division. These elected worker representatives meet regularly to discuss all matters of importance and suggest improvements for the betterment of the organization. "Deliberations on policy are conducted in a healthy, innovative, and democratic way," said managing director Chacko P. Thomas, a former assistant manager at Tata Tea Ltd. who later advanced to general manager and head of operations at KDHP. In 2005 Thomas helped organize and made a substantial investment in the em- ployee buy-out which awarded each individual a minimum of 300 shares in the com- pany. Shares were valued at INRs10 (the 15-cent price of a cup of tea). He was named managing director in February 2012. "About 98% of the 13,000 workers picked up 68% share of the company, and al- most every worker owned a minimum of 300 shares, the face value of which has grown seven-fold from INRs10 in 2005 to INRs.78.40 now," said Thomas. "Moreover, since 2005 we have paid a cumulative dividend of 174%. We saw our highest profits in 2010-11, and last year, despite the softer prices, we still managed a profit of INRs155.5 million ($2.5 million),." he said. Tata Global Beverages raised its stake in KDHP to 28.5% last July due in part to KDHP's outstanding performance. Workers today hold 58% of the shares which are valued at $1.40 each. Bear in mind that India's average family income is $1,490 which means that workers have seen a net gain in share value of almost one third of their annual wage. "Unlike the top-down approach followed in other plantation companies and Tata Tea before us, KDHP follows a bottom-up approach, with the decisions being taken by committees at various levels," Thomas explains. "The Participatory Management System was introduced to ensure full participation of all employees in the management of the company. The three-tier structure encom- passes all divisions in addition to one worker representative and one staff representa- tive on the board of directors of the company. Each year the employees identified as the best worker and best staff are automatically elected to the board as employee direc- tor and staff director during the following financial year," he said. In August Mrs. Vasanthi of the Chundavurrai Estate was selected by the prime minister of India as the best worker from the state of Kerala. She received the "Shram Devi" Award for work excellence. All factories are ISO 22000 certified and maintain strict safe food safety standards. A 140 Year History of Genial Commerce The generosity of King Rohini Thirunal Kerala Varma Valiya Raja and the business savvy of John Daniel Munro, representing the bordering kingdom of Travancore, established the genial spirit of commerce in Munnar. The rich history of the region is told in film and artifacts at the Kanan Devan Hills Tea Museum, a popular tourist destination. In 1876 Munro, a British national and diplomat, was dispatched to re- solve a border dispute with the nearby state of Madras. During his travels he became enchanted with Munnar which is crossed by deep gorges cut by the Madhurapuzha, Nallathanni and Kundaly rivers. On discovering it was 'jenmam' property he decided to visit the Poonjar Palace where the Raja ex- ercised absolute power over the land. The Raja's family had ruled for centuries, trading with Augustus Cae- sar at the height of the Roman Empire. Knowing the Pandya kings were gen- erous rulers with high regard for their subjects, Munro described the potential benefit to all of developing 136,600 acres in the Kanan Devan Hills. In 1877 the Raja agreed to share the land for a princely sum of INRs5,000 with an an- nual lease of INRs3,000. The property remains concessional land to this day. Two years after signing the agree- ment Munro formed the North Travan- core Land Planting & Agricultural Soci- ety. He recruited society members to plant coffee, cardamom, cinchona, and sisal throughout the region. A.H. Sharp's 50 acres of tea plant- ed in 1880 at Parvathy showed great promise and set the stage for expan- sion. In 1895 Finlay Muir & Company purchased 33 independent estates including Sharp's land. In 1897 the Kannan Devan Hills Produce Com- pany was formed to manage these estates. In 1964, the Tata Group part- nered with Finlay which resulted in the formation of the Tata-Finlay Group. In 1983 Tata Tea Ltd. was formed. Employee-owned KDHP came into existence when Tata divested in 2005. Source: Kerala Tourism