The boards of Lipton India and Brooke Bond India today formally approved the proposal to merge the two companies. Steps will now be taken to complete the legal and procedural formalities, and to obtain the approval of the shareholders both the companies and the high court of Calcutta. If approved, the merger will come into retrospective effect from July 1 last. The boards of the two companies, which met at bangalore separately this morning also approved the exchange ratio of shares of Brooke Bond for every 10 shares of Lipton. The merger of the two companies will lead to the formation of a single, strong and Brooke Bond are group company to be known as Brooke Bond Lipton India both and Brooke Bond are group companies, being subsidiaries of unilever. The merger will facilitate utilization of synergies in key business areas such as finance, rank D, marketing and distribution, besides the availability of trained manpower for future growth and diversification. The distribution strength of the two companies will ensure that under the merged company their products have maximum distributive reach. With its emergence as the biggest foods company in India, the Brooke Bond Lipton India is expected to have an equity capital of about Rs 120 Crore. With reserves and surplus of about Rs 160 crore, and a turnover in excess of Rs 1,500 Crore. Is poised to enhance its profitability potential and value to share holders in view of its planned thrust into processed foods in a big way. The plans include development of a range of new products for the domestic as well as international market. The two companies are well estabilished in the packet teas but their combined share of the tea market in the country will be barely chains. At the same time, I would request the finance minister. And apart from the amenities, the exciting thing that we see is that those people who have been working I mean the railway staff have also been accorded a number of facilities.
