Kolkata-based Dhunseri Petrochem & Tea Ltd has acquired two tea estates in the Republic of Malawi, a landlocked country in southeast Africa, at a consideration of Rs 122 crore ($22 million).
Together the estates have a capacity to produce 9.5 million kg (mkg) of tea and 0.5 mkg of macadamia and coffee. Dhunseri currently produces 13.5 mkg of tea in India.
Following the acquisition, Dhunseri’s annual production is likely to be around 23 mkg, Mr C.K. Dhanuka, Chairman of the company, said. This incidentally, is its first acquisition overseas.
According to a notification by the company to the NSE, it has bought two tea estates in Africa — Makandi Tea & Coffee Estates Ltd and Kawalzi Estate Company Ltd — through its wholly owned subsidiary, Dhunseri Pertrochem & Tea Pte Ltd.
The tea estates were acquired from London-based Global Tea & Commodities Ltd through a share purchase agreement.
“We were previously looking for acquisitions in Kenya and Vietnam. However, we intend to keep plans on hold for another year or so. But if an opportunity comes midway we might take it up,” he said.