B & A Ltd. — Capital/Financing Update 2024

Apr 1, 2024

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DEBDIP CHOWDH URY

Digitally signed by DEBDIP CHOWDHURY Date: 2024.04.01 11:27:14 +05'30'

B&A Ltd foray into retail tea market with Gatoonga Brand; Eyes Pan-India growth with the acquisition of Moheema Tea Estate

Jorhat I March 31: B&A Ltd, the flagship company of B&A Group- one of the leading black tea producers of India has acquired Moheema Tea Estate in Golaghat district, Assam. This new acquisition is in synchronization with the Group’s Rs. 50 cr. Capex plan for a Pan-India growth strategy, including foray into the retail market with its leading Gatoonga brand black tea.

Speaking about the acquisition and venturing into retail segment, Mr. Somnath Chatterjee, MD, B&A Ltd said. “For the first time in sixty years with new acquisition and diversification into the branded retail tea market, the Group has set up a roadmap for a Pan-India growth strategy. We have been selling premium quality Assam tea to other companies in India for decades. Having acquired deep experience, B&A Ltd is now set to harness its intrinsic strengths and experience to diversify further in terms of new acquisitions and market expansion. The group has plan to invest around Rs. 50 cr. in the next seven years as part of its growth and expansion strategy.”

Adding to this, Mr. Dhruba Joyti Dowerah, Dy. MD, B&A Ltd said, “The Company’s retail foray would begin with launching of Gatoonga brand of black tea on 31st March 2024, commemorating the 98th birthday of its visionary founder Late Padma Shri Dr. Hemendra Prasad Barooah by tapping the Assam market and gradually expanding it across India, based on a phased demand-driven growth strategy. Our high quality black tea, sold through other companies and auctions, has been popular in the market for decades and now garden fresh non-blended tea would be available to the retail customers in attractive branded packages.”

About B&A Ltd

B&A Ltd was descended from Barasali Tea Company Ltd, which was founded in 1915. The Company is operating 11 tea estates, including the latest acquisition in and around different locations of upper Assam, like Jorhat, Sibsagar and Golaghat. The Company produced around 5.5 million kgs. super quality tea and sold over 3 million kgs. through auctions during last fiscal, while selling directly 2.5 million kgs. The Gatoonga Tea Estate ranked as number 1, followed by Mokrung Tea Estate at number 3 and Salkathoni Tea Estate at number 6 in All India Batting Order in terms of price fetched for CTC teas in the auctions. The highest auction price fetched by Gatoonga was Rs. 706 per kg. in 2023.