Jay Shree Tea in talks to buy sugar company

Jay Shree Tea and Industries Ltd is diversifying into sugar. For the first time, the company is in the process of acquiring 100 per cent stake in a sugar company, M.P.Chini Industries Ltd. Based at Maihaulia, Bihar, M P Chini Industries is an unlisted sugar company with a daily crushing capacity of 4,600 tonnes.

Explaining the rationale behind going into sugar business, the company is of the view that the commodities are doing well and it feels that sugar will do very well in next few years. The cost of acquisition is estimated at Rs 112.5 crore. The acquisition will be funded through a mix of internal accruals and debt.

Jay Shree Tea and Industries has called a Board Meeting on March 30, to discuss and approve the shareholders agreement for the said purpose. The process of acquisition would be over in another six weeks.