Luxmi Tea Company, is planning to boost its quality teas through a proposed purchase of the African tea estates of Mcleod Russel India Ltd. (MRIL) for about ?149 crore. Luxmi Tea Company came into the limelight with the acquisition of the iconic Makaibari Tea estate in Darjeeling.
MRIL, a B.M. Khaitan Group company, through its wholly owned subsidiary Borelli Tea Holdings Ltd., has entered into an agreement with Rwanda Tea Investments Ltd. (RTIL) for selling its entire stake in Gisovu Tea Company Ltd., Rwanda and half its stake in Pfunda Tea Company, also in Rwanda. Luxmi Tea Company and The Wood Foundation, Africa are the shareholders of RTIL.
The total turnover of Gisovu and Pfunda is ?125 crore, accounting for 5.6 percent of MRIL’s 2017-18 turnover.
MRIL had earlier sold four Assam tea estates to Luxmi Tea Company, which is more than 100 years old and whose crop averages 23 million kg. It has 12 gardens in Assam, three in West Bengal and five in Tripura, besides a garden in Rwanda with The Wood Foundation.
Rudra Chatterjee, MD, Luxmi Tea said to media, “This buy fitted with the company’s focus on increasing its supply of tea which were of good quality, were produced in a sustainable way and which could be marketed directly to customers. Gisovu is almost next door to our existing garden and produces excellent highland tea.”