McLeod Russel To Sell Vietnam unit For USD 2.15 Million
McLeod Russel India Ltd, a bulk tea manufacturer, announced the sale of its Vietnam unit, Phu Ben Tea Company Ltd, for USD 2.15 million. The entity would be sold to TLK Agriculture Joint Stock Company (TLK). According to a regulatory filing, the deal is scheduled to be finalized by December 24, 2023.
The firm said its wholly-owned subsidiary Borelli Tea Holdings Ltd will sell 100 per cent of its capital contribution in Phu Ben Tea Company Ltd (PBTCL) to TLK. PBTCL had a contribution of approximately USD 3.6 million to McLeod Russel India's topline in the last financial year, as per economic times.
The sale of PBTCL is part of McLeod Russel's plan to focus on its core business in India, according to the company, which has been battling financial issues and selling non-core assets in recent years. In August, the business agreed to sell 15 tea plantations in Assam to electrode paste producer Carbon Resources for around Rs 700 crore in a move that will help it reduce debt.
The Kolkata-based firm now operates 33 tea farms in India, 31 in Assam and two in West Bengal's Dooars district.
McLeod Russel India Ltd is a tea firm based in India. It is presently the largest tea growing corporation in the world. It is a subsidiary of the Williamson Magor Group. It owns 31 tea farms in Assam's Brahmaputra Valley and two in West Bengal's Dooars district, three factories in Vietnam, and six estates in Uganda.