Date:24/01/2006 URL: http://www.thehindubusinessline.com/2006/01/24/stories/2006012402600200.htm

Back HLL completes transfer of Doom Dooma to McLeod Russel

Our Bureau

Kolkata , Jan. 23

HINDUSTAN Lever Ltd (HLL) and McLeod Russel India Ltd (MRIL) on Monday completed the transaction for transfer of HLL's 100 per cent shareholding in Doom Dooma Tea Company Ltd to MRIL.

In December 2005, both the companies had entered into a memorandum of understanding for this transaction. MRIL bought Doom Dooma from HLL at Rs 69 crore plus net current assets.

Shareholders of McLeod Russel India Ltd approved the deal at an extraordinary general meeting held on January 20.

A press release issued by MRIL stated that Doom Dooma Tea Co ceased to be a HLL subsidiary.

From now on it is a wholly-owned subsidiary of MRIL.

Doom Dooma owns seven tea estates in Tinsukia district of Assam with a plantation area of 3,100 hectares and three factories to process tea.

The average output from these estates has been approximately 6,000 tonne.

The release stated that the tea gardens of Doom Dooma are located in the "quality belt of Assam" and are in close proximity to the tea gardens of MRIL, which belongs to the BM Khaitan Group.

"HLL board believes that the proposed transfer to MRIL, lead industry player in tea plantations, is in the best interests of the business and all its stakeholders," the release stated.

It further added that the acquisition of Doom Dooma by MRIL will bring in more synergy benefits to MRIL and will help the company realise better prices for its teas both in domestic and overseas markets.