Rossell India Limited has announced the acquisition of Dhoedaam Tea Estate, located in Tinsukia district, Assam, from James Warren Tea Limited. The acquisition, valued at ₹64.20 crore, aims to enhance Rossell India’s crop base and overall profitability.
Detailed Highlights:
- Transaction Overview:
- Seller: James Warren Tea Limited, headquartered in Kolkata.
- Buyer: Rossell India Limited, based in Kolkata.
- Agreement Details: The acquisition is executed as a ‘going concern’ on an ‘as-is-where-is’ basis.
- Strategic Purpose:
- This acquisition is aimed at expanding Rossell India’s crop base to 7 million kilograms, marking a 40% increase in its existing production capacity.
- The deal aligns with Rossell India’s strategic focus on scaling its tea production capabilities and increasing market share in the premium tea segment.
- Dhoedaam Tea Estate Details:
- Location: Tinsukia district, Assam.
- Annual Production: Approximately 18 lakh kgs of tea.
- The estate is known for producing high-quality tea and is expected to contribute significantly to Rossell India’s operational efficiencies and product portfolio.
- Financials:
- Transaction Value: ₹64.20 crore.
- This acquisition reflects Rossell India’s confidence in the long-term profitability of the tea industry and its commitment to enhancing shareholder value.
- Impact on Rossell India:
- The increased crop base is expected to lead to a healthy rise in turnover and profitability for the company.
- With this acquisition, Rossell India strengthens its foothold in Assam, a region renowned for its superior tea quality.
- The expanded production will enable the company to cater to growing domestic and international demand for premium tea.
Rossell India anticipates a significant rise in turnover and profitability with the expanded crop capacity, aligning with its strategic growth objectives in the tea industry. Further updates on material developments will follow.
