McLeod Russel to sell third tranche of tea estates in Assam, Bengal

In turn, the company will focus on leaf procurement from small tea growers and process the tea from its own bought leaf factories which assures it a higher margin

After completing two tranches of garden sales in Assam that fetched McLeod Russel Rs 4.72 billion, the world’s largest tea producer is looking at selling more estates in the state as well as Dooars in West Bengal.

The proceeds from the sales will primarily be used to pare its outstanding debt by 70-80 per cent, fund the ongoing share buyback and invest in factories to process tea bought from external sources. The debt, which stood at Rs 10 billion at the end of March 31, has been brought down by around Rs 3.5 billion.

Sources said McLeod Russel was targeting another Rs