*Jay Shree Tea & Industries Ltd* is acquiring a company in the agro –
commodity space for about Rs 120 Cr. The company has not disclosed the name
of the target; however, there are rumors that it is buying a Bihar based
unlisted sugar company.

Jay Shree Tea – *BK Birla Group Company *– is engaged in the manufacturing
and sale of tea, chemicals and fertilizers. Jay Shree produces 21.80 Mtpa of
tea. It has 21 tea estates.

Transaction Reference:
ET<http://economictimes.indiatimes.com/news/news-by-industry/cons-products/food/Jay-Shree-Tea-lines-up-Rs-120-cr-for-acquisition/articleshow/5669497.cms>

  Transaction Note

Jay Shree has recently entered into a lease agreement with state-owned *Assam
Tea Corp* to manage two of its tea estates — Longai and Ishabheel — which
collectively produce 6 lakh kg of black tea annually. Jay Shree might end up
buying these tea estates, as it had followed a similar strategy earlier as
well. It entered into a management agreement with Darjeeling Consolidated
Tea Co for their tea estates in Darjeeling and later bought it out.

Jay Shree has been looking for overseas acquisitions for quite some time
now. Last Year, JayShree Tea acquired *Jayantika Tea Co Ltd*. It has also
entered into a JV with Rwandan firm to acquire tea plantations in Africa.

For the quarter ended Dec’09, the company's net profit rose 12.58 times to
Rs 33.2 Cr from Rs 2.640 Cr in the same quarter last year. Net sales for the
quarter declined marginally 3.38% to Rs141.9 Cr compared to Rs 146.91 Cr for
the same quarter a year ago, while total income for the quarter fell
marginally 1.13% to Rs 144.39 Cr, when compared with the prior year period.

*Sugar Mills in Bihar *


 Name Crushing Capacity (in TCD)  Bagaha 2,500  Harinagar 8,500
Narkatiaganj 5,000  Manjhaulia 3,500  Sasamusa 2,200  Gopalganj 5,000
Sidhwalia 2,500  Hasanpur 1,750






  KVEZAR® VIEW





 DEAL TRACKER FOR

 DateTypeSub TypeBuyerSize  Jay Shree - Unknown Acquisition Target
11/03/10  M&A  Acquisition  Jay Shree Tea and Industries Ltd.  26.44
Dhanalaxmi
Bank - Unknown Asset(AMC)  11/02/10  M&A  Acquisition  Dhanalakshmi Bank
Ltd.  0.00   Spice Fin - Unknown Asset  06/01/10  M&A  Acquisition  Spice
Investments and Finance Advisors Pvt. Ltd.  0.00
 Recent Transactions In The Sector

 DateTypeBuyerTargetSizeState  11/03/10   M&A   Jay Shree Tea and Industries
Ltd.   Unknown Asset   26.44   Planned       04/03/10   DEBT     Karuturi
Global Ltd.   75   Planned       04/03/10   DEBT     Karuturi Global Ltd.   75
  Planned       22/02/10   M&A   Shree Renuka Sugars Ltd.   Equipav S.A.
Acucar E Alcool   329.00   Announced
 Profiles

 Company  NamePromotersOfficeCompetitorWebsite Jay Shree Tea and Industries
Ltd.  B K Birla Group   INDUSTRY HOUSE 10 CAMAC STREET KOLKATA-700017 West
Bengal   Tata Tea Ltd.
Bombay Burmah Trading Corporation Ltd.
Mcleod Russel India Ltd.
Assam Company India Ltd.   www.jayshreetea.com     Unknown

-- 
Regards

Hardik Shah

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