McLeod Russel sells tea garden in a first to reduce debt

As on March 31, it has net debt of Rs 885.11 cr, against debt of Rs 789.89 cr during year-ago period

McLeod Russel, the world’s largest tea producer, has sold one of its gardens in the Dooars area in West Bengal that was making losses. The sale — the first in the company’s history — was done to reduce the firm’s debt burden.

The loss-making Bhatpara Tea Estate, which churns around Rs 15.53 crore for the company annually, accounting for 1.11 per cent of the top line, was under the management’s review for some years. The company finally decided to sell the 604.14-hectare estate, which produced 987,371 kg of tea annually, at a consideration of Rs 13.21 crore.

McLeod Russel had reached an