McLeod Russel to buy African tea co; Q2 net down 9 pc

Mcleod Russel India Ltd today said Borelli Tea Holdings Limited, the wholly owned subsidiary of Mcleod, will buy 90 per cent stake in Pfunda Tea Company in Rwanda for close to Rs 120 crore.
Mcleod managing director Aditya Khaitan said the company has agreed in principle to sign a Share Purchase Agreement with LAB International Ltd, UK for acquisition of its 90 per cent shares held in Pfunda Tea Company Ltd, Rwanda.
The African tea company is engaged in tea plantation and manufacturing activities to the tune of 2.5 million kgs.
Khaitan said the company will take measures to increase crop production to 3.4 million kgs per annum over the next 7-8 years and there will be no major capex needed to do so.

Meanwhile, McLeod has posted a net profit of Rs 221.50 crore for the quarter ended September 30, nine per cent down from the corresponding period last year that registered Rs 245.49 crore.
The Total Income has decreased from Rs 511.35 crore for the quarter in Q2, 2013 to Rs 505.88 crore for the quarter under review.