When it comes to a cup of tea, British-Indian billionaire Nirmal Sethia is hard to impress. If offered tea with milk and sugar he will send it back, but not before taking the server through a history of the beverage, and what he believes has been reduced to a watered-down industry.
There's no arguing with the 72-year-old founder of Newby Teas, who has been a tea-taster since he was 16.
Sethia has also amassed the single-biggest collection of tea accessories with 1,700 pieces, valued at US$200 million (Dh734 million), under the Chitra Collection, named after his late wife.
The N Sethia Foundation is the custodian of this rare collection, which includes pieces dating to 10th century BC, and precious gems-encrusted caddies designed by Sethia.
Among his collection are pieces from the Chinese Ming dynasty, Song dynasty and the Russian Romanov dynasty. A silver bachelor teapot engraved with the initial “N” that belonged to admiral Lord Nelson, the hero of the Battle of Trafalgar, US president Theodore Roosevelt’s tea caddy and tea sets owned by the Swedish Queen dating to 1809 are some of his famous pieces.
In August last year, the Guinness World Records awarded a diamond-adorned teapot – which was commissioned by his foundation – the title of the world’s most valuable teapot at US$3 million (Dh11m).
“Tea is like a beautiful woman, never to be judged for her appearance. She has to be judged by her character,” says Sethia, who recently relocated from London to Dubai.
“You see, the last 100 years has brought damage and destruction to the tea culture. Tea was at its highest glory in the Middle East and Europe from the 17th to the 19th century. Then silk tea bags came along in 1908, which was an easier way to have good tea without the leaves floating around in your cup.
“However, unscrupulous traders took advantage of that and started buying cheap low-grade teas that they would then pack and sell for less.”
With his new venture, Sethia wants to convert the fervent coffee-loving community in the UAE into tea drinkers, who will appreciate the meticulous tea picking and processing his factory in Kolkata undertakes.
Newby Teas was set up by Sethia in 2001; 49 per cent of the company is owned by the foundation, which provides education, medical, healthcare and environmental support to underprivileged communities. Its preservation, storage and packing facility opened in 2005.
Tea leaves are sourced from India, China, Japan and Taiwan and are shipped to the facility where they are preserved, blended and sealed in special multi-layered packages to prevent light, heat and moisture from destroying the flavour.
“The finesse and quality of the tea leaves depends on the latitude, longitude, weather conditions, and most of all, the dedication of the people who pluck the tea. Different weather conditions will produce different types of tea.
“That’s why we source tea from only certain countries. Heat, humidity and contamination are the biggest enemies of tea, so we do our best to preserve the character of tea in our facility.”
Sethia was born into a wealthy family, but he chose to leave it behind to forge his own path. He started out as an assistant in the tea-tasting department in a British tea plantation when he was 14.
“My father was one of the richest men in India. Coming from a Rajput family in Rajasthan, we had certain traditions, but that wasn’t what I wanted. So I found myself a job. While my seniors were tasting tea, I used to taste the leftovers. I started reading more about tea and sensitising my palate to the subtlety and notes of the tea. Tea became a meditation for me,” he admits.
By the time Sethia was 16, he had established his own tea business in Assam, India.
“I spent 11 months there and designed a tea factory myself.”
After his father passed away when he was 23, Sethia strayed away from his “first love”, and served as the chairman of Sethia Group, which was one of the largest exporters of jute in the country. But it was his ailing wife who reminded him that his destiny lay in the tea business.
“She was confident I would be successful in this venture and I had to do it for her,” he says.
“As soon as I got back into it, it all came back to me.”
After his wife died in 2010, Sethia felt the need to do something grand in her honour, so he began buying antique tea accessories for his Chitra Collection.
“I looked around museums and each one had a few pieces that preserved the tea culture from history. So I decided to take the onus of preserving it by buying pieces, some of which go back to 10th century BC. This collection has a very strong provenance.”
Sethia says these efforts are to protect the history of tea and create an awareness about high-quality tea at a premium price.
“Cheap can’t be good and good can’t be cheap,” he says.
aahmed@thenational.ae
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
The White Lotus: Season three
Creator: Mike White
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Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5