Date:03/05/2005 URL: http://www.thehindubusinessline.com/2005/05/03/stories/2005050302240200.htm

Back Unilever to exit tea plantation biz

Our Bureau

Mumbai , May 2

UNILEVER has also decided to exit tea plantation business in India.

Unilever Overseas Holdings BV, the Netherlands-based wholly owned subsidiary of Unilever PLC and Lipton India Exports Ltd, a 100 per cent subsidiary of HLL, have sold their stake in Rossell Industries to M.K.Shah Exports Ltd, an exporter and tea plantation company.

The two entities' combined holding in Rossell was 97.5 per cent. Local shareholders hold the remaining 2.5 per cent.

Unilever Overseas Holdings has divested 37 lakh shares while Lipton India Exports Ltd sold 61.85 lakh shares of Rossell to M.K.Shah Exports.

"The interests of the employees will be fully protected as they continue to remain employees of Rossell Industries on the existing terms and conditions," a press release said. Rossell Industries had come into Unilever fold in November 1999 as a result of acquisition of non-resident interests of Jokai Tea Holdings Ltd and Lipton India Exports Ltd taking over the shareholding from Y.K.Modi Group.

With the conclusion of this transaction, M.K.Shah Exports Ltd will now assume control of Rossell Industries Ltd, and Rossell Industries Ltd will cease to be subsidiary of Lipton India Exports Ltd and consequently of HLL, the company said.

The company said the transfer consideration is nominal and therefore not material in the context of HLL because of the significant losses built up in the businesses of Rossell over the years.