Tiruppur-based Poomex Clothing Company, along with four partners, has acquired the Dunsandle tea estate in Udhagamandalam from Bombay Burmah Trading Corporation Ltd (BBTC) for a total consideration of ₹120 crore.
BBTC said it has already received ₹110 crore from the buyers, with the balance to be paid as per the agreement, adding that the acquirers have no connection with its promoter group.
Non-core asset divestment
The transaction is part of BBTC’s strategy to divest non-core assets and streamline its business portfolio.
Poomex, an apparel brand focused on innerwear and clothing for men, women and children, is pursuing diversification through this acquisition.
Estate performance
In the last financial year, the Dunsandle estate reported a turnover of ₹5.65 crore and a net worth of ₹7.10 crore. It contributed 2.05% to BBTC’s turnover and 3.76% to its net worth during the period.
Legacy plantation asset
BBTC, a 160-year-old company of the Wadia Group, has diversified interests spanning plantations, foods, textiles, chemicals, electronics, healthcare and real estate. The group’s key companies include Bombay Burmah, Bombay Dyeing and Britannia.
In 1913, the company turned its attention to tea plantations and invested in suitable areas in South India. Today its plantations in the hills of South India cover 2,822 hectares under tea and produce about eight million kgs of tea annually.
Tea heritage in Nilgiris
Dunsandle estate, spread across 155 hectares in the Nilgiri hills, is among the earliest tea plantations in South India, acquired by BBTC in the early 20th century.
Located at an elevation of over 6,000 feet, the estate produces high-grown Nilgiri teas known for their distinctive aroma and flavour.