Tata subsidiary Tata Global Beverages, the world’s second largest tea producer, has announced it has reached a deal to acquire the total branded packet tea business of rival Indian firm Dhunseri for a total consideration of 101 crore INR ($14.4 million).
The proposed acquisition, which includes the brands Kala Ghora and Lal Ghora, is said to be subject to due diligence, the signing of definitive binding agreements and other approvals.
Kala Ghora and Lal Ghora are among the leading local brands in Rajasthan, a market dominated by local players, Tata said in a statement.
“This move is in line with Tata Global Beverages’ ambition to grow its branded tea business in India”, the company added.
Speaking to the Economic Times, Dhunseri Tea & Industries owner CK Dhanuka commented: “Both my brands are strong and can easily grow into a Rs300-crore brand with TGBL’s marketing and distribution strength”.
Source: Tata / Economic Times / Hindu Business Line