Why a non-tea player like Carbon Resources is eyeing McLeod Russel

With a crop of 44 mkg across 31 estates in Assam and two in Dooars, McLeod is a Goliath in the world of tea. It has estates in Africa and Vietnam and its total output worldwide is 73 mkg

Rising costs and stagnating tea prices have been major issues in the tea industry. So why is a non-tea player looking to buy a giant like McLeod Russel India and embrace the troubles is the question doing the rounds in tea circles.

Abhishek Jalan, director, Carbon Resources, says, it is a pure business decision. “We believe that this business has value. They have been EBITDA-positive even in the worst of times. They have been bleeding only because of a huge debt cost.”

Jalan’s company, Carbon Resources, which is into manufacturing input materials for ferro alloys, steel and aluminium industries, has