McLeod Russel looking to sell tea estates to settle its debt

McLeod Russel India Ltd, the world's largest tea plantation firm, is looking to sell its estates in Assam to clear its debt, Mint reports.

The Kolkata-based company has signed non-disclosure agreements with buyers to sell five tea gardens, sources told the paper.

The firm is a subsidiary of Williamson Magor & Company Ltd.

A spokesperson for Williamson Magor & Company declined to comment, the report says.

Moneycontrol could not independently verify the story.

MK Shah Exports is leading the race to buy some of the tea estates, sources told Mint.

As of March 31, 2017, McLeod Russel has a net debt of about Rs 790 crore and an outstanding consolidated net debt of Rs 885.11 crore, according to a Business Insider report.

The firm also sold 9.14 percent of its stake through the open market in November 2017.

McLeod Russel owns 64 estates across the world, while the Indian division own 48 estates.

The company is also ready to sell its tea estates in the Dooars region, bu the estates have not generated much interest, according to the Mint report.

Last year, the company sold its Bhatpara Tea Estate in the Dooars region for Rs 13.21 crore.