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Thapars' takeover of Saptarishi Agro rescheduled to July

R. Balaji

CHENNAI, April 7

THE proposed takeover of Tata Tea-controlled Saptarishi Agro Industries Ltd by Global Green Company Ltd (GGCL) of the Thapar group has been delayed following labour unrest at Saptarishi Agro's mushroom unit, according to reliable sources. While both the parties concerned were committed to the deal, the operating agreement, which was expected to culminate in the takeover by end-March, had been further extended by three months. A decision to this effect was taken at a recent meeting of Saptarishi's board, the sources said.

Meanwhile, according to sources, production has been affected at the 100-per-cent export-oriented unit for mushrooms due to the labour unrest. The problem relates to payment of bonus and wage increase. However, the management is optimistic that the probl em could be settled amicably.

The unit employs about 200-300 workers, most of them women from villages close to the facility located near Chinglepet, about 50 km south of Chennai. Due to the break in the culture cycle, even if the unit were to restart immediately, it will take at lea st 10 weeks for the first harvest output.

Taking into account the time factor, both Thapars and the Tata Tea management have decided to go in for rescheduling the takeover.

Incorporated in 1992, Saptarishi Agro came under the control of Tata Tea Ltd in 1996 when two of TTL's subsidiaries acquired a majority stake in the company. Conscofe Investments Ltd (CIL) and Asian Coffee Ltd (ACL) acquired 26 per cent each in the share capital.

Through the acquisition GGCL, a unit of Thapar group's Ballarpur Industries Ltd (BILT), hopes to increase its presence in horticulture and mushroom exports. Till now, Indian exporters have looked at mushroom exports only in bulk - catering to the food se rvice industry.

According to sources, GGCL would look at value-addition, and exports in consumer packs to put its brand on the market shelves. The company currently exports gherkins in jars, and mushrooms would simply be an extension of this concept.