The Hindu Business Line : Rossell Tea plans diversification

IN an effort to insulate the annual performance of the company from the vagaries faced by only one commodity, Rossell Tea Ltd, belonging to Mr Harsh M. Gupta, is mulling diversification into several other industries.

While Rossell Tea has already listed all sorts of sectors such as hotels, packaging, construction, ice cream, marine vessels and electronic equipment, it has been learnt that the company might venture into the aviation sector, which is also identified.

According to Mr N. K. Khurana, Vice-President (Finance)-cum-Company Secretary, the management is carrying out discussions with several organisations and parties, but nothing has been finalised.

Meanwhile, the company has decided to make the necessary changes in the object clause of its Memorandum of Association. A special resolution has been prepared and it be would be voted in the next annual general meeting, which is scheduled for July 28.

Mr Khurana clarified that it was an enabling resolution. "As we are seeking the opinion of the shareholders, we thought of having all the likely sectors marked in it. This might help us in future," Mr Khurana told Business Line.

He added that there was a strong possibility that Rossell Tea might venture into the aviation sector. In fact, Mr Gupta, who is the Executive Chairman of Rossell Tea, is already present in the aviation industry.

One of his group companies, the New Delhi-based BMG Enterprises Ltd, is an aviation consultant, which also exports aircraft parts. "We have some amount of expertise, as we are already present in this sector," he said.

The company has also identified the hospitality sector as a proposed area for diversification. According to Mr Khurana, the company will look into tea tourism, given the growing prospects of the sector.

Rossell Tea, which owns five gardens in Assam, produced 54.50 lakh kg of tea crops in 2004-05. Out of it, 2.12 lakh kg was exported. Last year, it produced 2 million kg of orthodox tea.

During 2004-05, the company's turnover was Rs 48.51 crore against Rs 37.78 crore the previous financial year. The net loss of the company continued to remain around Rs 2.60 crore.

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