Rossell India Ltd has acquired a tea garden in Assam capable of producing 1.8 million kg of tea for ₹64.2 crore, daring the perceived gloom and doom surrounding the industry.

The Dhoedaam tea estate in Tinsukia district would be the largest in the Rossell stable, upping the company’s production capacity by 40 per cent to 7 million kg.

“After demerger of the defence and the aerospace business, we have sharpened our focus on tea. We believe in the long-term prospect of the tea industry,” Sunil Singh Sikand, CEO of Rossell India, said.

The demerged business was listed on the bourses on Monday under the name of Rossell Techsys Ltd.

The price Rossell is paying to acquire the garden from James Warren Tea works out to ₹370 a kg, which tea market experts described as competitive.

In the last fiscal year, the garden recorded a turnover of ₹29.5 crore.

Rossell expects significant expansion of turnover and profit with the proposed acquisition.

The transaction comes close on the heels of a good show by tea companies in the July-September quarter.

Average price realised at the auction in North India from January to October was ₹230.46 a kg, up from ₹190.08 a kg realised in 2023, representing a gain of 21.2 per cent.

A dry spell in the tea growing regions of Assam and Bengal affected the crop, leadingto a spike in prices, which was reflected in the bottomline of tea companies in the listed space.

With the Tea Board clamping down on plucking of leaves and production of tea from December 1, the demand supply situation may favour the growers going forward.