Calcutta, April 21: Rossell India will buy Dhunseri Petrochem & Tea’s Namsang tea estate in Assam for Rs 28.29 crore.
The Namsang Tea Estate, located in the Dibrugarh district of Assam, can produce around 7.30 lakh kilogram of black tea.
Rossell has five tea estates in Assam.
In a filing to the Bombay Stock Exchange, Rossell said, “The company has entered into an agreement with Dhunseri Petrochem & Tea Limited for the acquisition of their Namsang Tea Estate as a going concern for an agreed consideration of Rs 28.29 crore.
“With this acquisition, the total tea estates owned by the company in Assam increases to six with a total production capacity of 51 lakh kg of black tea in a year.”
“We chose an estate in Assam because that is where all our properties are. This was also because we had bid for a Rwandan tea estate which did not work out. What can be a better place for tea than Assam,” said C.S. Bedi, managing director, Rossell Tea.
“There are formalities which both companies, both listed, have to go through. This should take about a month and a half. When completed, we gain full operational control of the estate,” he said.
Rossell currently caters to a large base of overseas buyers. These include Germany, Japan, the US, UAE and Iran.
The company controls Dikom, Nokhroy, Nagrijuli, Bokakhat and the Romai tea estates, comprising 2,170 hectares.