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Darjeeling Plantations sells tea estates

By Pratim Ranjan Bose

KOLKATA DEC. 6. In a major development, DPIL Ltd. (formerly known as Darjeeling Plantations and Industries), part of the Rs. 200 crore Warren-DPIL group, has sold all of its six tea estates in Darjeeling to Chamongtee Exports of Ashok Lohia. According to industry sources the deal was struck at about Rs. 15-15.5 crores. Apart from tea, Warren also has interests in the hospitality sector.

With this acquisition Chamongtee had emerged as the single largest producer of Darjeeling tea controlling a total of 12 gardens producing no less than 1.5 million kg or 15-16 per cent of total Darjeeling tea production. Originally with three estates, the Lohias had enhanced their stake in Darjeeling by acquiring three more estates from Eveready Industries of B. K. Khaitan last fiscal.

Since the other industry leader, Goodricke, had already sold four out of 13 estates in Darjeeling and was believed to be in the process of selling another two estates sooner or later, the latest round of acquisition had put the Lohias as an undisputed leader of the 10 million kg high value tea industry.

While Vinay Goenka, Chairman of DPIL, remained silent to the queries from The Hindu, speaking on behalf of Chamongtee Exports, Y. Lohia confirmed the acquisition. He, however, denied to disclose the price.

Meanwhile with the sale of Darjeeling estates, DPIL is left with only one estate in Dooars. The company had already sold its sole estate (Tippuk) in Assam to the group flagship Warren Tea last year.

Incidentally though referred under the same group, the corporate entity of Warren has little control over that of DPIL but the fact is that Mr. Goenka (who along with his wife S. Goenka) manages Warren Tea as the president and managing director, on behalf of the promoter and chairman, A. K. Ruia, of DPIL. An NRI, Mr. Ruia is the father-in-law of Mr. Goenka. The latest development also marks restricting Mr. Goenka's promoting interests into a single garden in Dooars.

Describing at least four of the six estates as premium properties but currently incurring operational losses, the sources said that DPIL was earlier negotiating the sale with Balaji Agro International, a Kolkata based merchant exporter in Darjeeling tea now on the look out to acquire plantations. The negotiation (with Balaji), however, fell through at the last moment. When contacted, a Balaji Agro spokesperson refused to elaborate the reasons behind but the `falling ethics' in the industry.

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