Co-presented by

Tata Global to acquire Kolkata-based Dhunseri's branded tea business for Rs 101 cr; eyes to expand market

Kolkata: Tata Global Beverages Ltd (TGBL) on Tuesday said it has entered into a non-binding agreement to
acquire the branded tea business of city-based Dhunseri Tea and Industries Ltd, for an aggregate consideration of up to Rs 101 crore.

The proposed acquisition will be subject to due-diligence, signing of definitive binding agreements and
applicable approvals, TGBL said in an exchange filing.

 Tata Global to acquire Kolkata-based Dhunseris branded tea business for Rs 101 cr; eyes to expand market

Representational image. Reuters

Dhunseri's branded tea business include 'Lalghoda' and 'Kalaghoda' brands in Rajasthan, where local players dominate the market.

The move is in line with TGBL's ambition to grow its branded tea business in India, the company release said.

For the fiscal ended 31 March, the India tea business of TGBL clocked a 9 percent volume growth and 7 percent value growth across its brands.

Net sales of Dhunseri's branded tea business stand at Rs 70 crore.

"I will focus on bulk tea business. Packet tea needs a lot of effort in building marketing network. TGBL are leaders in packet tea and they will grow the brands," chairman of Dhunseri Group, C K Dhanuka, told PTI.

Dhunseri has a total bulk tea capacity of 11 million tonne in India and 10 million tonne in Africa.

"We want to acquire more tea gardens in Africa, but not keen in India," he said.

Your guide to the latest election news, analysis, commentary, live updates and schedule for Lok Sabha Elections 2019 on firstpost.com/elections. Follow us on Twitter and Instagram or like our Facebook page for updates from all 543 constituencies for the upcoming general elections.

Updated Date: Apr 24, 2019 11:07:00 IST