Madhu Jayanti International has made an acquisition of Eveready’s packet tea business and its brands, including Tez Red, Premium Gold, and Jaago, for Rs 6 crore. With this acquisition, the company is looking to ramp up its domestic business.
The combined sales volume of Eveready’s brands is estimated to be close to 3.8 million kg (mkg), and the value is pegged at around Rs 68 crore. The acquisition will help add an additional 3.8 mkg to the Madhu Jayanti’s domestic business.
Sumit Shah, Executive Director, Madhu Jayanti, said, “With the acquired brands, we plan to strengthen our packet tea business and portfolio. In India, we will look to be a national player rather than being a regional one.”
The packaged-tea business of Eveready is operating in 14 States, including Bengal, Bihar, Jharkhand, Odisha, Uttar Pradesh, Uttaranchal, Madhya Pradesh, Chhattisgarh, Rajasthan, Punjab, Himachal, Gujarat, Maharashtra and Karnataka. Besides Maharashtra and Karnataka, Madhu Jayanti will get access to 12 more states with this acquisition.
Currently, the domestic sales account for nearly 33% of the company’s total turnover at around Rs 129 crore. The acquisitions will scale up its value sales to Rs 198 crore, immediately.