Kolkata, July 1 (IBNS): Marking a significant development in the packet tea business in India, Madhu Jayanti International Limited announced the acquisition of the packaged tea brands –Tez Red, Premium Gold and Jaago of Eveready Industries India Limited (EIIL) at Rs. 6 crores. This aligns with Madhu Jayanti International’s mission to progress from a regional player to national player.
Madhu Jayanti International tea company, which focuses largely on international markets, for the last five years has been expanding in India. The company launched two new brands TE-A-ME teas (Pan India – 2014), Sphoorti (Maharashtra – 2018) on the back of its existing packet tea brands (Saraswati Tea and Lalpan tea) which were sold in Karnataka and Maharashtra. Now with this acquisition of Eveready brands the company is steadily moving ahead with its agenda of graduating from a regional player to a pan India player.
Commenting on the acquisition, Mr. Sumit Shah, Executive Director, Madhu Jayanti International Limited said: “We consistently look for opportunities to better serve our growing customer base and expanding our market reach. With the acquired brands we plan to strengthen our packet tea business and our brand portfolio to reach newer markets. This acquisition will expand our footprint into 14 tea consuming markets in India. Our 75 years of rich legacy in producing fine teas and rare expertise in understanding India’s regional specific taste profiles will be effective to take the acquired brands to a whole new level.”
Kolkata-based, Madhu Jayanti International Limited is India’s leading manufacturer and exporter of value-added teas. Along with their export operations, Madhu Jayanti also has 3 premium priced regional (Karnataka and Maharashtra) packet tea brands (Saraswati, Lalpan, Sphoorti) and a national tea bag brand (TE-A-ME Teas). Eveready Industries India is one of country’s notable consumer company having interest in batteries, flashlights, lighting, packet tea and appliances. Eveready’s packet tea brands cater to the lower economy and economy segment of the market. Furthermore, Eveready’s brands are present more in the rural market, while Madhu Jayanti International’s current distribution is limited to the urban and semi-urban population of the country.
The EIIL’s packaged tea business operates in 14 states of India – Bengal, Bihar, Jharkhand, Odisha, Uttar Pradesh, Uttaranchal, Madhya Pradesh, Chhattisgarh, Rajasthan, Punjab, Himachal, Gujarat, Maharashtra and Karnataka. Madhu Jayanti International is over seven decades old and has expertise in sourcing, blending and packaging teas. The purchase will be financed from Internal accruals and the process is expected to be completed by July 4, 2019. The acquisition of EIIL’s tea brands will help transform Madhu Jayanti International from regional packet tea player (Maharashtra & Karnataka) to a formidable national tea company.
The acquisition will help Madhu Jayanti International to take its mid premium and premium brands to newer markets by harnessing on the EIIL’s robust distribution channel.
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