Dhunseri-Tezpur Tea merger approved in board: Dhanuka

Kolkata, Jul 30 (UNI) Dhunseri Tea&Industries Ltd has approved 'in principle' merger of Tezpore Tea Co. Ltd. with itself, subject to appointment of valuer to assist the company in this process.

Speaking to UNI after the board meeting, Dhunseri Tea&Industries Chairman C K Dhanuka today said Dhunseri Tea&Industries is set to merge its associate company, Tezpore Tea Company, with itself.

He said PWC has been appointed as the valuer.

''The merger would provide better synergy and greater economies of scale in managing our tea operations,'' Mr Dhanuka said. While the average yield of Dhunseri gardens was around 2,400 kg per hectare, the Tezpore gardens were a bit lower between 2,200 and 2,300 kgs per hectare.

Dhunseri is also eyeing acquisition of a tea garden in upper Asom which has an yield of 2,000 kgs per hectare, Mr Dhanuka said.

Dhunseri Tea has eight gardens in Assam while Tezpore has three in Assam and one in Dooars. Dhunseri Tea now produces 75 lakh kg tea and Tezpore 33 lakh kg per annum. After the merger, it would produce 10 million kg, of which 2 million kg would be orthodox tea.

These gardens employ over 10,000 workers.

Meanwhile, Mr Dhanuka said the company would acquire five lakh square feet area in Bantala IT park, with an investment of Rs 100 crore, in a bid to generate rental revenue.

UNI