McLeod Russel to expand purchase of bought leaf, sell marginal

Bulk tea producer McLeod Russel, a part of the Williamson Magor group, today said it would draw up strategy to become asset-light, would sell its marginal loss making gardens and expand purchase of bought leaf.

Vice-chairman and MD of McLeod Russel Aditya Khaitan told shareholders at the company's AGM that the idea behind disposing off marginal gardens was to pare debt.

He said the company would assess the gardens on the basis of which the sell-off decision would be taken.

"We want to bring down interest costs and be asset light", he added.

In the last seven to eight years, the company purchased around 18 to 20 million kilograms of bought leaf from the unorganised sector.

Cash received from selling the tea estates would be used for making long-term investments, Khaitan said.