Rossell Tea, earlier part of the Y K Modi-controlled Rossell Industries, is set to diversify into hotels and fast-food restaurants and amusement parks and is planning to develop properties suitable for hotels and resort.

The preferential allotment to BMG Enterprises will increase BMGs shareholding from 17.73 per cent of the existing subscribed and paid-up equity share capital to 44.93 per cent of issued, subscribed and paid-up capital of the company.

The company also sought shareholders approval to increase the authorised share capital from the existing Rs 4 crore to Rs 5 crore.

Rossell Tea, which now has three gardens in Assam, is planning to make a foray into hotel and catering business.

The management also proposes to construct, maintain, improve, develop, control and manage hotels, resort, fast-food restaurants, theme-restaurants, confectioneries, eating places, amusement places, leisure places or like or otherwise to develop any property suitable for hotels, motels, resort, clubs and amusement parks.

Rossell Tea, which was part of Rossell Industries till 1994, posted a sales income of Rs 19.75 crore in the last financial year ended March 31, 1997, as against Rs 17.25 crore in the previous financial year.

While profit before tax stood at Rs 2.18 crore during the year under review against Rs 2 crore in 1995-96, while profit after tax was Rs 1.53 crore compared with Rs 1.4 crore in the previous financial year.