McLeod Russel India Limited is an India-based company engaged in the cultivation and manufacturing of tea. Incorporated in 1998, the company is a tea plantation business of the Kolkata-based B.M. Khaitan Group and was formed after the demerger of the bulk tea business from Eveready Industries India Ltd. It operates primarily in the cultivation, manufacture, and sale of tea, managed as a single-unit organization. The company stands as one of the largest tea-producing companies globally and has established a significant international footprint in the tea industry. Founded in 1869, it is headquartered in Kolkata, India.
The company's geographical segments span across India, Vietnam, Uganda, Rwanda, the United Kingdom, and other regions. Its extensive plantation network comprises approximately 33 tea estates located in Assam and West Bengal, positioning McLeod Russel as a dominant player in the global tea cultivation landscape. Tea produced by the company is sold in both domestic and international markets, including Europe, the Middle East, and North America. McLeod Russel operates over two bulk blending units capable of blending both Orthodox and Crushed, Torn, and Curled (CTC) tea varieties.
McLeod Russel has a rich history marked by strategic acquisitions that have significantly strengthened its position in the global tea market.
- In July 2005, the company acquired Borelli Tea Holdings Limited from the Magor family (based in England) and took over seventeen tea estates from its Indian subsidiary, Williamson Tea Assam Ltd.
- Over the following two years, McLeod Russel acquired two more prominent tea companies in Assam: Doom Dooma Tea Company and Moran Tea Company India Limited.
- In 2010, McLeod Russel India Ltd acquired Borelli Tea Holdings Ltd.
- In 2011, the company established a subsidiary in Dubai.
- In February 2011, Borelli Tea Holdings took over management control of Gisovu Tea Company Limited in Rwanda.
These strategic moves have enabled the company to expand its global reach and diversify its operations across multiple continents.
As of the latest available data:
- Market Capitalisation: Approximately ₹383 crore (showing a 20.4% increase in 1 year, according to Screener). Other sources indicate current market capitalisation stands at ₹384.4 crore, with today's market capitalisation at ₹360.27 crore.
- Stock Performance (52-week):
- High: ₹51.90
- Low: ₹21.50
- Annual Performance: The stock has shown a 20.33% increase over the last year.
The company has faced considerable financial challenges in recent periods.
- Q4 FY2024-2025: McLeod Russel India Ltd's net profit jumped 20.15% compared to the same period last year, reporting a net loss of ₹-174.41 crore.
- Full Year FY2024-2025: The company reported a net loss of ₹-197.87 crore, despite improved tea sales.
Key Financial Metrics (Latest Available):
- Revenue (March 2025): ₹165.47 crore
- Net Loss (March 2025): ₹-174.41 crore
- Annual Revenue (FY25): ₹1,185 crore
- Annual Loss (FY25): ₹-198 crore
The company has delivered a poor sales growth of 0.73% over the past five years and a low return on equity of -39.3% over the last 3 years.
McLeod Russel India has proposed a debt resolution plan to NARCL, seeking to address its borrowings totaling ₹1,461.07 crore. The company's financial distress continues due to factors such as crop losses and outstanding inter-corporate deposits.
- Promoter Holding: Stands at 6.25% as of March 2025.
- Board of Directors: Includes Amar Nath Dhar, Alok Kumar Samant, Amritanshu Khaitan, Indrajit Sengupta, Rupanjana De, Sanjay Ginodia, and Aditya Khaitan.
- Chairperson: Aditya Khaitan.
To uphold its commitment to sustainability, MRIL has obtained various certifications:
- FairTrade Labelling Organisation International (FLO)
- Hazard Analysis and Critical Control Point (HACCP)
- Suppliers Ethical Data Exchange (SEDEX)
- Ethical Tea Partnership (ETP)
These certifications underscore the company's dedication to sustainable and ethical tea production practices.
To support its operations and growth, the company has made significant capital investments, including:
- Increasing withering capacity across 8 estates.
- Installing 12 rotorvanes.
- Adding 14 CTC machines.
- Implementing 6 Vibro Fluid Bed Dryers.
- Introducing 1 Continuous Fermenting Machine.
- Acquiring 3 new 500 KVA diesel generating sets.
- Installing 1 Mini Boiler.
These investments reflect the company's focus on modernizing its production capabilities and enhancing operational efficiency.
The company is listed on major stock exchanges:
- BSE: Code 532654
- NSE: Symbol MCLEODRUSS
- ISIN: INE942G01012
- Listing Date: July 29, 2005
Registered Office: Four Mangoe Lane, Surendra Mohan Ghosh Sarani, Kolkata-700001, West Bengal.
Despite current financial headwinds, McLeod Russel India Limited remains a significant player in the global tea industry, leveraging its extensive plantation network, international presence, and commitment to sustainable tea production. The company's strategic positioning in key tea-growing regions and its established global distribution network provide a foundation for potential recovery as market conditions improve.
