Warren Tea Explores Strategic Amalgamation with Maple Hotels to Diversify Beyond Plantations

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Warren Tea Ltd, one of India’s oldest tea producers, has announced that its board is evaluating a potential amalgamation, restructuring, or scheme of arrangement with Maple Hotels & Resorts Ltd. The move signals a strategic shift as the company looks to diversify its portfolio beyond tea plantations and deepen its footprint in the hospitality sector.

Key developments under consideration

- The board of directors met on June 17, 2025, to assess the feasibility of merging with Maple Hotels & Resorts, a company in which Warren Tea already holds a significant equity stake
- Maple Hotels operates three properties in Rajasthan—two in Jaipur and one in Bikaner—and has expansion plans underway, including a new hotel in Jodhpur and upscale tent accommodations in Bikaner
- The proposed amalgamation is expected to consolidate Warren Tea’s holdings in Maple, streamline operations, and unlock synergies between the tea and hospitality businesses
- The company has previously increased its stake in Maple Hotels to 46.92 percent, indicating a long-term interest in the hospitality vertical

Strategic rationale and diversification goals

- The tea industry has been facing rising input costs and margin pressures, prompting Warren Tea to explore alternative revenue streams
- Maple Hotels has shown steady revenue growth, with projections of Rs 14 crore in turnover and plans to acquire additional properties through insolvency resolution
- The hospitality business is being scaled independently, with no cross-funding from tea operations, ensuring financial discipline across verticals
- The group is also active in IT solutions, offering ERP and facial recognition software to tea estates and jute mills, further diversifying its business model

Future outlook

If the amalgamation proceeds, it could mark a pivotal transformation for Warren Tea, positioning it as a multi-sector enterprise with interests in agriculture, hospitality, and technology. The move is expected to enhance shareholder value, improve capital allocation, and provide a buffer against volatility in the tea market.

Sources: Rediff MoneyWiz, Warren Tea Ltd., LiveMint.