G D Bangur unit buys Jamirah Tea

G D Bangur-promoted Joonktollee Tea & Industries is set to acquire Jamirah Tea Company for a consideration of around Rs 20 crore.

Sources close to the development said, Jamirah Tea Company has a production capacity of one million kgs, which would be added to Bangurs' 3.7 million kgs capacity at present. The move was part of the group's vision to take the total capacity to more than 10 million kgs.

The deal was done at Rs 200 per kg for Jamirah and was expected to be announced on Monday. In tandem with the Securities & Exchange Board of India (Sebi) guidelines, Joonktollee would have to make an open offer for another 20 per cent of Jamirah Tea Company. Joonktollee has an estate in Assam and one in Karnataka.

The company also has a coffee estate in Karnataka. The company's net sales as on March 31, 2007 stood at Rs 28.73 crore. Industry sources said, the move was well timed as the tea industry was looking up. The new season was starting on a clean slate and domestic consumption was at a high, given that there no stocks despite one of the lowest exports, they pointed out.