Rash Of Changes On The Anvil At Rossell Inds

Following the acquisition of tea major, Rossell Industries Ltd (RIL) by Unilever, a slew of changes including a drastic reduction in work force at Rossell is expected, with Deepak Atal, managing director being the first to exit.

The newly reconstituted board has H S Siddhu as the wholetime director and S K Dhal, R Karunanidhi and P Asirvatham as non-executive directors. The board has also decided to shift Rossell's registered office to Mumbai.

At presen, the strength of RIL's managerial staff is around 60. However, there is likely to be a large exodus from the company. A human resource development (HRD) team from Hindustan Lever Ltd (HLL) from Mumbai had come down to take down details of the company officials. According to sources at RIL, while some might be relocated, many are likely to be asked to leave. However, whether HLL and RIL will be merged or will operate as separate entities is still uncertain.

 

RIL was co-promoted by UK-based Jokai Tea Holdings and Y K Modi and Associates.

Unilever has acquired 65 per cent stake in RIL for Rs 175 crore at a negotiated price of Rs 173 per share. The agreement was negotiated with Jokai Tea in Holdings, UK, and Y K Modi and Associates in India.

Jokai Tea holds 36.56 per cent stake in the company and will receive Rs 64 crore.