Mcleod Russel India Ltd Share Price

History of Mcleod Russel India Ltd

The flagship tea company of the B M Khaitan Group, McLeod Russel India Limited (MRIL) was originally incorporated as 'Eveready Company India Private Limited' on May 5, 1998. The Company became a deemed Public Limited Company in 2000. Thereafter, the name of the Company was changed to 'McLeod Russel India Limited' (MRIL) with effect from February 14, 2005. MRIL is is engaged in cultivation and manufacturing of tea. The Company is one of the largest plantation presently consisting of 33 tea estates located in Assam and West Bengal. The tea produced is sold to domestic and international market including United Kingdom and Europe. Its facility also includes two bulk blending unit that can blend both 'Orthodox' and Crushed torn and curled (CTC) tea varieties. Apart from the tea, McLeod R ...ussel has over the past five years been closely working with local towns and villages throughout North East India with the cultivation of Jatropha (Jatropha curcas) under Agricultural project, which is used to make D1 Oil - Bio Diesel. MRIL has the certification for various credentials to its products from Fairtrade Labelling Organisation International (FLO), Hazard Analysis Critical Control Point (HACCP), Suppliers Ethical Data Exchange (SEDEX) and Ethical Tea Partnership (ETP). The Bulk Tea Division of Eveready Industries India Limited (EIIL) with all its assets (including 28 Tea Estates), liabilities, rights and obligations has been transferred to and vested in the company with retrospective effect from 1st April of the year 2004. The Company subsequently amended its Articles of Association to exclude the restrictive Clauses applicable to Private Limited Companies and remained a Public Limited Company. In July 2005, McLeod Russel had acquired Borelli Tea Holdings Limited from the Magor family based in England and took over the 17 tea gardens of its Indian subsidiary Williamson Tea Assam Ltd. With further acquisitions of the Doom Dooma Tea Company and the Moran Tea Company India in 2006 and 2007 respectively the company established itself to be the largest tea producing company in the world. In October of the year 2007, Moran Tea Company (India) became as a subsidiary of the company. The BOD of the company had approved the scheme of amalgamation of The Moran Tea Company India with Mcleod Russel India during February of the year 2008 with requisite majority. In October of the same year 2008, MRIL's subsidiary Borelli Tea Holdings has signed a term sheet with SA SIPEF NV of Belgium for acquisition of 100% equity stake in Phu Ben Tea Company of Vietnam at a cost of USD 2 million. Mcleod Russel India Ltd plans a capital expenditure of 250 million rupees this financial year 2008-09. Borelli Tea Holdings Ltd., U.K. the Wholly Owned Subsidiary of the Company acquired 100% of the controlling stake of Phu Ben Tea Company Limited engaged in plantation, manufacture and sale of black tea during 2009. Williamson Magor & Co. Ltd., (WML) and D1 Oils Trading Ltd. of U.K. formed a 50:50 Joint Venture Company viz., D1 Williamson Magor Bio Fuel Ltd., (D1WM) in July 2006 to facilitate development of Jatropha Oil seeds through contract farming operations for production inter alia of Bio Diesel. As part of the upgradation and modernization programme of factories, withering capacity was increased on 8 estates. 12 Rotorvanes, 14 CTC machines, 1 Continuous Fermenting Machine (CFM), 6 Vibro Fluid Bed Dryers (VFBD), 6 coal stoves and 1 mini boiler were purchased and installed in various factories. In some factories extension of building was undertaken to accommodate additional sorting machinery and create additional storage space for packed tea. To augment the standby generating capacity three new 500 KVA and one 125 KVA diesel generating sets and two 380 KVA Gas generating sets were installed. On estates where natural gas was available, seven new bi fuel kits were installed to facilitate running the generating sets both on High Speed Diesel (HSD) or Natural gas. For undertaking river embankment work bordering tea estates and deepening outlet drains, two new JCB Excavators were purchased. Forty new pruning machines were procured to facilitate completion of pruning in time. One new Blending drum with a capacity of 2000 kgs per hour was installed at Nilpur Blending Unit in 2009. In 2009, since the Company commenced its operations as a tea company, it set growth target on a yearly basis and so far was successful in achieving it. During first three years growth came by acquisition of three renowned tea companies having plantations in the quality tea belt in Assam. Subsequently these companies merged with Company resulting in substantial growth in turnover and profitability. Finding opportunities for further growth, the Company later set its sight on the overseas tea growing nations. The first Company acquired abroad was Phu Ben Tea Company Limited, a major tea plantation Company of Vietnam in 2009 through Borelli Tea Holdings Limited (Borelli), the wholly owned subsidiary of the Company. Borelli gained control of the tea plantation Company of Uganda namely, James Finlay (Uganda) Limited (JFUL) in January in 2009 when it bought the entire share capital of its holding Company. Borelli Tea Holdings Limited, U.K. (Borelli), the wholly owned subsidiary of the Company during 2009-10 acquired 75% of the controlling stake of Olyana Holdings LLC (Olyana) incorporated in USA and 100% of the share capital of Rwenzori Tea Investments Limited (Rwenzori) incorporated in Uganda. The Management of Gisovu Tea Company Limited in Rwanda was taken over by Borelli on 24th February 2011, whose 60% shares of Gisovu were acquired from the Government of Rwanda. During 2014-15, the Company's subsidiary, Borelli acquired 90% of Share Capital of Pfunda Tea Company Limited from L. A. B. International Limited, U.K. and resultant Pfunda became a subsidiary of Borelli and a step down subsidiary of Company. On 26th November 2014, the Management of Pfunda Tea Company Limited changed hands from L.A.B. International UK Ltd, selling its 90% stake to Borelli Tea Holdings Limited UK, the wholly owned subsidiary of McLeod Russel India Limited. During the year 2016-17, Rwenzori Tea Investment Company Limited, Uganda which was a subsidiary of Borelli, was amalgamated with McLeod Russel Uganda Limited. During 2018-19, Borelli sold its entire equity stake in Gisovu Tea Company Limited and 50% of its stake in Pfunda Tea Company Limited both in Rwanda for a total consideration of USD 208,57,117 by virtue of which the above companies ceased to subsidiaries of Borelli and step-down subsidiaries of the Company.