Kolkata: McLeod Russel India, one of India's largest bulk tea producers, is selling three tea estates — Nya Gogra, Rupajuli and Boroi — to repay part of its debt. The total proceeds are expected to be around Rs 88 crore.
Details of the Sale
In 2024-25, Nya Gogra Tea Estate contributed Rs 30 crore, or 3% of the company's total turnover. The expected sale proceeds are Rs 44.8 crore. The buyer is Kolkata-based Bengal Tea & Fabrics Ltd.
Rupajuli Tea Estate contributed Rs 11.2 crore to turnover in 2024-25. McLeod said in a filing that the expected sale proceeds are Rs 16.7 crore. The buyer is Khona Tea Estate LLP.
Boroi Tea Estate contributed Rs 17.1 crore to turnover in the previous financial year. The buyer is Kolkata-based Jatinga Agro-Tech.
Debt Restructuring Plan
The sale of the three gardens is part of a broader debt restructuring plan. National Asset Reconstruction Company Limited (NARCL), through India Debt Resolution Company Limited, approved the restructuring of the company's debt and the sale of some gardens.
Earlier in April, McLeod Russel finalised a debt restructuring agreement with NARCL. Under the plan, the company received a three-year relief package. It must service sustainable debt of Rs 1,050 crore by Feb 15, 2029. As part of the restructuring, NARCL will acquire a 10% equity stake through debt conversion.
