Kolkata: Tata Global Beverages Ltd has signed a non-binding agreement to acquire Kolkata-based Dhunseri Tea.
The Tata Group Company will buy the branded tea business of the Dhunseri Tea and Industries Ltd for Rs 101 crore. While, the deal has been initialed on a non-binding basis, which does not legally obligated the parties to carry out the transaction.
Being one among the top 10 Tea producers in India Dhunseri commands 1% market share of overall tea produced in the country with an annual turnover of Rs 178 crores in the FY 2018, on the other hand Tata Global Beverages reported an annual revenue of Rs 6,815 crore in FY 2017-18.
Headquartered in Kolkata, Tata Global Beverages is the world’s second-largest manufacturer and distributor of tea and a major producer of coffee. Dhunseri on its part commands the highest market share in the premium segment of packet tea in Rajasthan.
Dhunseri incorporated in 1997, has two packaged variants LalGhora and Kala Ghora with an aggregate production capacity of approximately 21 million kilograms across over 12 tea estates spread over India and Malawi.