McLeod's return from brink of IBC signals a brief respite for tea industry

In an industry in which more than half the production is accounted for by the small growers, analysts believe that big players may help bring production and pricing discipline

On September 3, the country’s largest bulk tea producer, McLeod Russel India, hobbled its way out of insolvency proceedings after a settlement with financial creditor, Techno Electric & Engineering, a power infrastructure company. For the storied business house of Kolkata, it was a close shave. But for the past three years, it has been touch-and-go for the tea producer in the Brij Mohan Khaitan group.

In the world of tea, McLeod Russel is a Goliath of sorts, with a production of 44 million kg in India and 73 million kg globally, including Africa and Vietnam. Its troubles are more to