McLeod Russel to sell 8 tea gardens in Upper Assam

Bulk tea producer McLeod Russel India has decided to sell eight of its tea gardens in Upper Assam, manufacturing 10.5 million kilos annually, to M K Shah Exports Limited (MKSEL).

An understanding has been reached between the two companies and MKSEL has agreed to purchase the eight tea estates located in Doomdooma circle of Dibrugarh district, a press release issued by MKSEL said here today.

The tea gardens to be acquired by MKSEL are Beesakopie, Raidang, Daimukhia, Samdang, Baghjan, Bordubi, Koomsong and Phillobari.

The combined grant area of these eight plantations is 9,350 hectares and the area under tea is 5,700 hectares, it said.

The estates have a combined work force of 11,000 workers.

The deal is expected to be concluded soon and MKSEL, which has been a debt-free company, would finance it through a combination of debt and equity, the release added.

The release, however, did not mention how much MKSEL will pay for owning the eight plantations.

MKSEL at present manufactures 7.5 million kilos of tea annually from its existing tea estates in Assam and post this acquisition, the combined entity shall manufacture 18 million kilos annually with a work force of more than 17,000 workers.