NeST to buy RPG's rubber plantation
NeST, a Kochi-based software to plantation group, has entered into an agreement to buy RPG Group’s 1,400-acre Kaliyar rubber plantation, part of Harrisons Malayalam, for Rs 53 crore. This is seen as the single largest rubber plantation divestment ...
By Boby Kurian & S Sanandkumar, TNN |
BANGALORE/KOCHI: NeST, a Kochi-based software to plantation group, has entered into an agreement to buy RPG Group’s 1,400-acre Kaliyar rubber plantation, part of Harrisons Malayalam, for Rs 53 crore. This is seen as the single largest rubber plantation divestment by the Rs 150-crore HML, India’s biggest producer.
When contacted, N Jahangir, MD of NeST Group, confirmed the development. He said the deal was a strategic fit for NeST, which has existing interests in cardamom and added the group was looking at consolidating its plantation interests further. Sources said the deal was a direct transaction between the Sanjiv Goenka headed HML and NeST, and no investment banker was involved.
Kaliyar plantation is located near Thodupuzha in Kerala’s Idukki district. The deal is pending HML shareholder approval. HML has over 20,000 hectares of rubber and tea plantations spread across Kerala and Tamil Nadu. It must be mentioned that HML has been divesting smaller rubber holdings in recent times.
Earlier, it sold Boyce estate and Cheruvally plantations as the rubber price started firming up in recent times. RPG Enterprises holds majority stake in HML, which is also south India’s largest tea producer. The company, which was formed by the merger between Harrisons & Crossfield and Malayalam Plantations in 1984, has operations dating back to more than 100 years.
Speculation has been rife about RPG’s long term interests in the plantation business. Both rubber and tea has had its cyclical downturns with each coming to the rescue of HML at critical times.
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