WTA rejigs board

BM Khaitan to take charge

Williamson Tea Assam today announced its new board structure with Brij Mohan Khaitan at its head.

The board would have four executive directors--Brij Mohan Khaitan, Deepak Khaitan (vice chairman), Aditya Khaitan and K K Baheti. However, there would no managing director for the company. Philip Magor would continue on the board as a non-executive director.

Deepak Khaitan, was in London for the financial closure of the acquisition.

The company was in the process of being integrated with McLeod Russel India, operationally. Ernst & Young had been appointed to assess the synergies between the two companies.

Brij Mohan Khaitan said, the acquisition would result in significant cost savings for McLeod Russel to the tune of Rs 15-20 crore, per annum.

When asked whether merger of McLeod Russel India and Williamson Tea Assam was on the cards, Aditya Khaitan said, it was in the pipeline and a decision would be taken after the open offer for Williamson Tea Assam.

The open offer would be made by McLeod Russel India, Williamson Magor & Company, United Machine Company, Ichamati Investments and Nitya Holdings & Properties at a price of Rs 145 a share.

The open offer for 20 per cent of Williamson Tea Assam, according to Sebi guidlines, had already been announced. "We will appoint a consultant for the merger after the open offer closes" said Brij Mohan Khaitan.

Even as the deal was being sealed, the group was eyeing acquisitions in the international market. Aditya Khaitan said, "We will need a footprint in Kenya as a logical step. We should have some Kenyan tea in our portfolio" he said. However, he clarified that the company had not zeroed in on any gardens in Kenya.

It may be mentioned, Philip Magor had expressed interest in roping in the Khaitan as a joint venture partner for its Kenyan company. Magor's Kenyan operations were under the fold of Williamson Tea Kenya, which had four estates with a total production of 14.5 million kg.

The move was in tandem with the vision of becoming a global plantation company. The group had set a target of reaching a production of 100 million kg by 2008. After the acquisition of Williamson Tea Assam, the total production of tea in the group's portfolio stood at 62 million kg.