Madhu Jayanti buys Eveready's packet tea business

Madhu Jayanti International Private Ltd (MJI) on Monday said it has acquired the packet tea business of Eveready Industries India Ltd for a consideration of Rs 6 crore.

Eveready Industries, a Williamson Magor (WM) group company, had on Sunday announced an agreement with MJI for its loss-making packet tea business to reduce stress on working capital.

The company acquired all the three brands -- including Tej and Premium Gold -- of Eveready Industries, giving the city-based packet tea manufacturer access to 12 more states apart from Maharashtra and Karnataka.

"The three packet tea brands of Eveready Industries have an annual turnover of Rs 68 crore. The total volume of these brands is 3.8 million kg," Executive Director of MJI, Sumit Shah, told a press conference here.

Shah said MJI has a total of five brands, with a domestic turnover of Rs 129 crore and sales volume of 2.4 million kg, as of the last fiscal.

"This financial year, MJI's total domestic sales is expected to be Rs 198 crore after the acquisition, and the sales volume will likely rise to 6.2 million kg," he said.

During the 2018-19 fiscal, MJI's export business stood at Rs 261 crore, while the total revenue was at Rs 390 crore, Shah said.

"Five years hence, total revenue from India operations should be around Rs 300 crore from the packet tea business," he added.