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

India’s exports sank 6.8% in 2021 from a year earlier to 195.5 million kilograms, data from Tea Board India show. (Photo: Bloomberg)

Ishita Ayan Dutt Kolkata
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

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First Published: Sep 21 2022 | 3:27 PM IST

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