The Hindu Business Line : McLeod Russel to begin Williamson Tea (Assam) integration with itself

MCLEOD Russel India Ltd (MRIL), the tea company of the B.M. Khaitan group, will begin physical integration of Williamson Tea (Assam) Ltd (WTA) with itself.

MRIL announced the acquisition of WTA early this month from the UK-based Magor group. According to Mr Deepak Khaitan, Vice-Chairman of MRIL, the integration exercise will start within 15 days of the completion of the acquisition process.

Elaborating, Mr Aditya Khaitan, Managing Director of MRIL, said that after a check-run it was found that WTA had continued with the same management practices it had five years ago when the company was within the Khaitan fold.

"Operations in Assam will integrate faster. The integration is expected to help both the companies to strengthen themselves. We know the managers of WTA. Some time after November, during the lean season, we might relocate some staff," Mr Aditya Khaitan told reporters.

However, both the brothers agreed that there might be some excess manpower in the corporate office. They said the staff would be identified by the end of 2005 and if need be a voluntary retirement scheme would be introduced.

When asked whether WTA would be merged into MRIL, Mr Deepak Khaitan said it was too early to make a comment. "We would like to have the MRIL scrip listed at the bourses, which would happen within the next seven to ten days," he said.

In this context, he added that a road map for MRIL was being prepared and it would be ready within the next six to eight months.

Meanwhile, MRIL has called an extraordinary general meeting of the shareholders on the acquisition of WTA, on July 6.

For the year ended March 31, MRIL has registered net sales of Rs 316.89 crore and a net loss of Rs 19.74 crore. As it is MRIL's first year accounts it could not be compared with the previous financial year.

However, the segment reports of Eveready Industries India (from which MRIL has carved out) in the annual report of 2003-04 stated that bulk tea sales were Rs 302 crore.

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