Stock for TEA lovers like ME :)Mcleod Russel India Ltd - CMP - 38.70
About
Incorporated in 1998, McLeod Russel
India Ltd is in the business of cultivation
and manufacturing of tea
Key Points
Business Overview:
MLRL is a tea plantation company of Kolkata-based B.M. Khaitan Group and was formed
after the demerger of the bulk tea business from Eveready Industries India Ltd. It is in the business of cultivation, manufacture, and sale
of tea and is managed as a single-unit organization.
Tea Estates & Factories:
Company is part of the Williamson Magor. The group is the largest tea-producing company in the world. Its estates produce 80+ million kilograms of quality black tea. Company has total land under tea cultivation being 33,723 hectares including:
a) 31 in the Assam Valley
b) 2 in the Dooars region of West Bengal
c) 3 tea estates & 7 factories in Vietnam, 6 tea estates & 5 factories in Uganda
d) Management control of the world-renowned Gisovu estate in Rwanda, which has 2 tea estates and 2 factories.
International Presence:
a) Tea Estates: India, Africa, Vietnam
b) Blending Units: Dubai, Guwahati
c) Offices:India, UK, Dubai, Kenya
Certifications:
Company has internationally recognized certifications including Rainforest Alliance, Trustea and ISO 22000
Sale of Assets:
MRIL has sold one tea estate in the Dooars,
and twenty more, of which 18 are in Assam
and 2 in Dooars. Post conclusion of the sale, company has 32 tea estates. On August 4th, 2023, company approved the execution of a binding Term Sheet with Carbon Resources Private Limited to formalize the terms for
sale of certain identified tea estates to
Carbon under a debt resolution process to be undertaken by the Lenders, for a one-time settlement of the debt owed by the Company
to its identified lenders
Production Capacity:
Company has an installed capacity
to manufacture around 42 million kg
of tea from its own leaves. It is primarily
a producer of CTC tea, which accounts
for around 96% of the total tea production
Revenue Breakup - FY23:
Sale of Products - Tea ~97%,
Other Operating Revenue ~3%
Geographical Revenue Split - FY23:
Exports ~42%,
Domestic ~58%
Country wise Revenue - FY23:
India ~80%,
Vietnam ~2%,
Uganda ~15%,
Other Countries ~3%
Major Issues:
Company has been reporting recurring losses
for the past many years and is unable
to meet the terms of facilities /loans availed
from various Lenders. It is in discussion
with lenders for debt resolution and lenders have also requested for submission of the proposal for One Time Settlement of their dues. Further, Aditya Birla Finance Limited,
State Bank of India, Shah Brothers and
IndusInd Bank Limited (not registered)
have filed applications before the NCLT Kolkata bench for initiating the Corporate Insolvency Resolution Process. This is contested by
the company
Capital Contribution Agreement:
On October 25th 2023, a Capital Contribution Agreement was executed between:
a) Borelli Tea Holdings Limited(BTHL), a wholly owned subsidiary of McLeod Russel India Limited
b) Phu Ben Tea Company Limited (PBTCL), a Step down subsidiary of the Company, in Vietnam
c) TLK Agriculture (TLK), a joint stock company incorporated in Vietnam
Consequently, BTHL will sell 100%
of its Capital Contribution in PBTCL
to TLK at a net consideration of USD 2.150 million. PBTCL will cease to be the subsidiary of BTHL and step-down subsidiary of the company
Source: Screener.in
This is just to boost my confidence. No Suggestions for buying. I will keep checking and updating my mistake if last post gone wrong...
Disclosure: I am not SEBI registered. The information provided here is for educational purposes only. I will not be responsible for any of your profit/loss with these suggestions. Consult your financial Adviser before making any decisions.
