Khaitan & Co advises Dhunseri Group on Strategic Internal Re-organisation

Khaitan & Co has advised the Dhunseri Group in relation to an internal re-organization of the shareholding.

The internal re-organization of the shareholding was done in the following companies by way of inter-se promoter group share transfers, i.e., (i) Dhunseri Investments Limited’s acquisition of 8.79% of the shareholding of Dhunseri Ventures Limited from Naga Dhunseri Group Limited; and (ii) Naga Dhunseri Group Limited’s acquisition of 45.77% of the shareholding of Dhunseri Tea and Industries Limited from Dhunseri Investments Limited.

Khaitan & Co was involved in advising on the structuring of the transaction and assisting the Client in drafting, reviewing, negotiating, and finalizing various transaction documents along with assistance on corporate and secretarial related aspects.

The transaction team consisted of Aniket Agarwal (Partner), Shourya Sengupta (Partner), Bhargav Chakraborty (Associate) and Karishma Sethia (Associate).

This internal re-organization is aligned with the Dhunseri Group’s strategic objectives. Naga Dhunseri Group Limited aims to consolidate and strengthen its focus on the tea business, while Dhunseri Investments Limited seeks to consolidate and increase focus on its interest in Dhunseri Ventures Limited (a company having major interests in the petrochemical business).

Dhunseri Group is a diversified Indian conglomerate with a strong presence in petrochemicals, tea production, real estate, and financial investments. Established in 1955, the group has grown into one of the leading PET resin manufacturers in India through Dhunseri Petrochem Ltd., catering to both domestic and international markets. In the tea sector, it operates plantations in India and Malawi, producing premium-quality tea for global distribution.

Dhunseri Group has undergone significant internal reorganization to streamline its operations and focus on core business areas. In 2014, the company demerged its Tea Division, transferring it to Dhunseri Tea & Industries Ltd (DTIL), and reorganized its IT SEZ Division by transferring it to Dhunseri Infrastructure Limited (DIL).

In 2019, Dhunseri sold its branded tea business, including the Lalghoda and Kalaghoda brands, to Tata Global Beverages Ltd for ₹101 crore, allowing the company to concentrate on scaling up its plantation business.

Further diversification occurred in 2021, when Dhunseri Ventures Ltd shifted focus towards the confectionery sector, particularly through its Singapore-based subsidiary, Twelve Cupcakes Pte, and continued its emphasis on the tea business in India and Africa.

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