Tata Global Beverages Ltd, a subsidiary of the multinational conglomerate Tata Group, said it entered into a non-binding agreement to acquire the branded tea business of the Kolkata-based Dhunseri Tea and Industries Ltd for Rs 101 crore.
A non binding contract is an agreement in which the parties are not legally obligated to carry out the transaction.
Dhunseri had an annual turnover of Rs 178 crores in the FY 2018, whereas Tata Global Beverages reported an annual revenue of Rs 6,815 crore in FY 2017-18.
Incorporated in 1997, Dhunseri is currently one of the ten largest tea producers in India.
The company produces approximately 1% of the overall tea produced in India. It also holds the highest market share in the premium segment of packet tea in Rajasthan.
Dhunseri presently has two packaged tea brands – Lal Ghora and Kala Ghora.
It has an aggregate production capacity of approximately 21 million kilograms across over 12 tea estates spread over India and Malawi.
Headquartered in Kolkata, Tata Global Beverages is the world’s second-largest manufacturer and distributor of tea and a major producer of coffee.
The company markets tea under the major brands Tata Tea, Tetley, Good Earth Teas and JEMCA.