Rossell India Ltd

Rossel India Ltd. - A tea diversification play!

Market Cap: 206.99 Crores

Current Price: 56.40


Business Summary:

)- Rossel India Ltd. was fully concentrating on tea and diversifying from fy2012 onwards into defence, aerospace oem and QSR (Quick Service restaurants)

)- FY2013-14 – Revenue break-up – Tea (87%) - defence, aerospace oem (10%) - QSR (3%)

)- Promotors are having 75% share holiding and general pulic (floats) are around ~10.8%

Tea Business:

)- Cash cow of Rossel India. It has been transformed with lots of changes in last 30+ years.

)- Producing 5.5 million kgs of tea in FY13-14. Having seven estates to produce them (2 bought in last year)

)- Per kg price is 30-40% higher than other players for last several years; Per kg price is doubled almost in 8 years.

)- It is a monsoon, heavy asset and labour intensive business.

Defence & Aerospace oem:

)- They are already having india based customers like DRDO, and last year they’ve got aerospace oem contract from Boeing

)- This division is having almost experienced with 20+ years and retired from services to run (All the provision and utilities are ready)

)- This division is expected to do a lot from current 10% revenue contribution considering FDI in Defence (More than 300cr project, requires 30% contribution from indian based company to tie-up)

)- Were investing with JV with CAE for simulation and training on defence projects before (not seeing much updates in last year AR)


)- It was started around FY2012-2013 with own brand called Kebab Xpress in New Delhi/NCR region.

)- Currently having 7 shops opened and eyeing to get around 20 shops opened before end of FY15.

)- Future plan is to spread into bangalore and calcutta (their HQ)

)- It is not break-even yet and it will be possible in this fiscal when crossing 15 shops

)- Following standard QSR chains like center hub to make most of the foods and distribute to other shops

)- Q1FY15 – With 7 shops, they’ve contributed 2crores as revenue; FY2015 may have 14 crores possibly as revenue from this division

)- Read the food ratings and comments section – Almost all are good; Cost seems to be also normal


)- It is having 70 crores as short + long term debt; having investments in MF around 55 crores + 12 crores invested in JV called Rossel Enterprises pte (26% by Rossel:74% by devyani international) – Investments are done in taco bell franchise in an african country.

)- There was a old report that in Assam tea estate would be valued at ~Rs. 500/kg if the yield is average; which gives Rs. 275 crore for tea estate (mcap is 210 cr) then.

)- Last 5+ years - They are paying dividends.

Overall the business on defence, aerospace OEM and QSR will give the differentiation in growth and value unlocking while tea business to be the cash cow!

Disclaimer: Already having a tracking position and please do the related analysis and take a call. It is a low volume scrip again.

Hi Hitesh, Ayush, Have asked your inputs in a thread and did my study from AR reports and other news items here. All VP’s, Please share your valuable comments about this business and queries/views to learn more. Thanks.


I am holding Rossel India since last 2 years. It is a good long term bet in my opinion. But do keep in mind that there is a good chance that QSR division will bleed as long as they are in expansion mode .

Adding more research work & details which I’ve got as part of google alerts setup:

Thanks Bosco Menezes for the response. As per recent interview from management, they’re claiming to get into profit of QSR in Delhi/NCR setup in FY15 itself after reaching branch count around 15 (from current 7; Seeing already 8th shop is opened).

It will be great to know if any of VPs (from delhi) had a chance to taste Kebab Xpress menus and experience on it (scuttlebutt).


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IMHO, classic “diworse-ification”. QSR is a low ROCE, capital destructive business in a country like India (most restaurants which scaled up have pretty low RoE’s given high rentals, intense competition and fragmentation of market).

Worldwide, the ones that producre good returns are those which spotted this trend early and now are franchisors (asset light, steady cash flows driven by brand royalty).

If the company is already into tea, doing value added products/branded tea would have been a far better idea - QSR market is even more competitive than the branded tea market.

Any views ? On what basis did they choose to diversify - why defence/QSR ?

Link: Link: Link:

I am holding Rossel India since last 2 years. It is a good long term bet in my opinion. But do keep in mind that there is a good chance that QSR division will bleed as long as they are in expansion mode .



Would like to suggest to have read on the latest AR which is having good walk though of business and achievements. Add my thinking and points for the questions and would like to learn from the discussion again.

Company is certainly doing investments and plans to increase the main business i.e tea in coming years. Last year, they’ve acquired two estates and looking to get good opportunities to increase the tea production. Their realization per kg is very above then average measures.

Aerospace & defence:

)- They’re looking for the potential via defence FDI which is having clause that foreign vendors have to source 30% contract values (for contracts exceeding rs. 300cr) from local companies. Where rossell have invested on the plant/training resources and gaining experience from domestic projects. This will really be a sun rise industry to set of players where rossell will be among them.

)- Rossell is already having set of OEM projects on aerospace in domestic level and last year they’ve got a contract from boeing which gives the quality certification/credit to them. This will enable to go for global OEM service space on aerospace.

)- Revenue contribution’s are already there - 10% in FY14. We need to wait n watch on the potential they’re able to unlock. Also we’ve to factor the employees they’re having (all are from X service folks)


)- They’re starting with the own brand (kebab Xpress - North indian cuisine) and having already experience/exposure via running taco bell franchise in african country with JV with devyani international.

)- Currently having 8 outlets and thinking to get into profitability on reaching 15+ outlets which they’re hopeful in FY15 itself (Targeting to setup 20 outlets in FY15 itself). They’re following the central hub model where initial few outlet will be requiring more capital where rest will be mainly on rental + very low operational needs.

)- This industry is really booming and expected to grow 15%-20% cagr for next few years.

)- Having good executive team who is having very good business exposure on this domain

We’ll have to see the management’s walk the talk in QSR in next few quarters.

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Rosell India Limited ~ Fundamentals Analysis by KBF

CMP : 120

52 Wk H/L : 133/ 34

Eq Cap: Rs7 Crs

Reserves: Rs187 Crs

Other Liab: Rs48 Crs

Fixed Assets: Rs257 Crs

Promoter Sh Holding 75%
FII holding 8%
DII holding 5%
Others 12%

FV : Rs2/- per share

BV : Rs51/- per share

June Qtr EPS : Rs2.5/- per share

Projected Annualised EPS: Rs12/- per share


Industry PE : 60


SALES : Rs63 Crs v/s 54 Crs QoQ v/s Rs66 Crs YoY

EBITA: Rs17 Crs v/s (Rs9 Crs) QoQ v/s Rs11 Crs YoY

PAT: Rs9 Crs v/s (Rs18 Crs) QoQ v/s Rs7 Crs YoY


Rosell India Ltd started its journey in 1994 as Rosell Tea Ltd. Along the way, it added Aviation and Defence manufacturing and service capabilities to its growth and diversification story.

On 19th April, 2011, the company rechristened itself as Rossell India Ltd to better represent its diverse business capabilities. Post rebranding, Rossell India Ltd has two divisions:

:black_small_square: Tea and
:black_small_square: Aerospace & Defence (Engineering Manufacturing and Services)


About Rossell Tea (A division of Rossell India Ltd)

The Essence of Quality:

Our gardens are our special assets, star properties that have been acquired carefully and tended with care. Each of our estate is a jewel. The gardens came into our fold 22 year ago and several acquisitions, we are a family of seven jewels. These we guard and nurture very carefully. The ‘jewels’ yield true satisfaction and pleasure for tea aficionados around the world.


History and Profile:

Rossell Tea is a Division of Rossell India Limited, earlier known as Rossell Tea Limited, which was incorporated on 10th June, 1994.

On 1st July, 1994, it took over Dikom and Nokhroy Tea Estates located in the state of Assam, earlier owned by the erstwhile Jokai India Ltd., established in the late 19th century. Jokai was a well-known mark in the tea industry renowned for its quality.

At the time of the takeover, saleable production of our black tea was 2.7 million kgs.

After successive acquisitions of other prized tea gardens located in the quality belt of Assam, reaching to total 7 tea estates such as :
:black_small_square:Namsang and
:black_small_square:Kharikatia Tea Estates,

our black tea production increased to 5.8 million kgs.

Currently, our total area under tea cultivation, comprising all seven tea estates, is nearly 3000 hectares and currently has around 6000 employees.

A sizeable quantity of teas produced by us is exported to various overseas markets.

The Group’s exports are approximately 30% of its annual production.



The group has now capacity to produce about 6 m.kgs of tea annually, with major production of Orthodox (approx. 60%) and balance comprising high quality CTC teas.

Quality has been the prime mover at Rossell Tea and significant capital outlay, coupled with best field and manufacturing practices, have firmly established the Company’s reputation as a Quality Producer.

Strict controls in the field, the shop floor and thereafter, at Company’s tasting facility in Kolkata ensure that top quality teas are produced under the most stringent hygienic conditions.



Rossell caters to a large base of premier overseas buyers, mainly in the:
:black_small_square:UAE and
:black_small_square:Other Middle East Countries
:black_small_square:as well as the quality conscious domestic market.

Rossell’s commitment to supply Quality & MRL-compliant teas is evident from the consistent support shown by buyers globally and within the country.

The company’s direct exports in the last seven years have shown a growth of more than 300%.


Rossell India Limited is now, a diversified Company, the other Divisions being Aerospace & Defense, Product Support & Services and Hospitality.


About Rossell Techsys (A division of Rossell India Ltd)

Rossell Techsys is the Aerospace and Defence (A&D) Division of Rossell India Limited, and currently has around 425 employees.

Rossell Techsys is ISO 9001:2015, AS 9100:2016, ISO 27001:2013, ISO 14001: 2015, ISO 31000 compliant, and BS OHSAS 18001:2007 certified, in addition to being a CEMILAC- (Centre for Military Airworthiness Certification) approved organization for “Design, Development and Testing of hardware and software systems for airborne applications, Test Rigs and Fabrication of Aircraft Looms”.

In addition, Rossell Techsys is a member of IPC, RTCA and ERAI.

More certifications are on the anvil, including ISO 37001, DGCA (Directorate General of Civil Aviation) and ISO 28001.

Committed to the goal of meeting and exceeding the requirements of our Global Customers, we constantly strive to improve the effectiveness of our engineering & manufacturing systems and processes.

The result being :
:black_small_square:on-time deliveries,
:black_small_square:cost competitiveness and
:black_small_square:quality products & services for aerospace and defence applications.

Rossell Techsys is fully eligible to be an Indian offset partner (IOP).

Rossell Techsys also provides value added reseller services to global OEMs.

Rossell Techsys aggressively and strictly enforces proprietary laws to combat piracy.

It is ISO 27001 certified entity and has an established information security management system (ISMS).

Rossell Techsys follows essential disaster recovery (DRP) and business continuity (BCP) plans.



Does anyone have an updated view on Rossell India? From Tea to Defence is a crazy diversification.
There are some shoddy related party transactions happening in Rossell where promoter’s wife and daughter is getting too much employment benefits. -

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With Rossell Techsys setting up it’s new state of the art facility at Bangalore, with an investment of close to 90crores, does this add to the capacity expansion and its capabilities?

Rossell Tea Division as stated in the annual report can do approx 150-160 crores top line.

Rossell Techsys is where the thrust is going to or should come from. It already contributes 50% of topline, with the commencement of the new facility in Bangalore, will the topline go up?

Looking for views…

Disc: invested


Yes, as per 2020 and 2021 AGM, they have materially expanded their facility from about 80,000 sq ft to more than 4 lac sq ft. This has been done as they see huge increase in aviation business in coming years. They have also got good orders from new customers like Honeywell and Lockheed Martin and have doubled their order book. However FY22 maybe flat or poor they mentioned in the AGM due to Covid issues in the industry which led to deferment of orders.

Disc : invested in family and client accounts


History :

Rossell Tea ( later Rosesell India) was founded in 1994 by Harsh Mohan Gupta. Company owns seven tea estates (Dikom Tea Estate, Nokhroy Tea Estate, Nagrijuli Tea Estate, Romai Tea Estate, Namsang Tea Estate, Kharikatia Tea Estate) that is used to produce Tea. Annual production capacity is about 5.5 m Kg. Since the beginning they managed to keep high quality, mainly due to field control and other strick measures. They mainly cater to US/Europe and middle east customers. They are very particular about MRL-compliance ( MRL - Maximum Residue level) that makes the customers especially the quality conscious US/Europe customers happy. Company has an excellent record on quality and compliance. Due to this they have a higher premium for their products.

Due to the nature of the business company revenues and earnings were cyclical. Company ventured in to completely different business altogether. In 2006 company started “The Aerotech Services Division” and in 2008 they started “Vankesh Avionics Technologies”. “The Aerotech Services Division” concentrated on providing product support services for their equipments fitted on various aircrafts, helicopters and ships in India. Vankesh Avionics worked on harness and loom manufacturing, testing and integration, system integration, design and development of Automatic Test Equipments (ATEs) for ground testing of aircraft and spacecraft sub- systems.

Around 2010 Vankesh Avionics Technologies renamed to Rossel Techsys. Harsh Mohan Guptas son Mr. Rishab Mohan Gupta graduate from Suffolk Uni, MA USA. He is a non-certified pilot and aviation enthusiast. He has joined the company at 2009 since then he is working at Techsys. He holds the Director position of the company. CEO of techsys is Mr. Prabhat Kumar Bhagvandas, he ingeniously spearheads all operations within this Rossell division. With a background in electronics and a Master’s Degree in Business Management, PKB’s illustrious career trajectory has spanned over 39 years. During these decades he has helmed several key leadership positions across multiple domains like aerospace & defense, automotive, consumer electronics, industrial automation, and controls and data networking.

For a brief time company also ventured in QSR business, but completely closed down the division in 2019. They also had a Aerotech services division, which they closed down as the contract was expired in March 2021. Going forward company has two divisions tea and Aerospace. Here I try to cover only Techsys and its products as most of the Tea operations are known.



1) EWIS - Electrical Wiring InterConnect System

EWIS means any wire, wiring device, or combination of these, including termination devices, installed in any area of the aircraft for transmitting electrical energy, including data and signals between two or more intended termination points. EWIS is basically the wiring system of an aircraft, including all the wiring harnesses that InterConnect currently makes for various aerospace and defense companies and countries. Essentially, EWIS includes the wires, connectors, backshells, splices, etc.; the entire bundles that make up the aircraft wiring system. EWIS is responsible to ensure that systems keep functioning even in case of a fault such as bundle fire, connector failure, or other external failures that can break the signal continuity.

After 1996 Boeing 747 accident, industry standards were defined collectively by ATA, NASA, Northwest Airlines, Boeing, Airbus, and the FAA. Norms are very tight, and heavily regulated. Rossell could make inroads in to Boeing itself speaks volumes about its capability and quality standards. company has been catering to the requirements of certain Multinational Companies, with hefty order book and long term contracts. Its a niche area, and was supposed to grow to a market size of USD 6.8 Billion by 2023

But covid as well as max 737 grounding has hit the industry pretty hard. In nexty years industry is supposed to pick up demand as travel and other activities resume normal activities after covid shock

In the sphere of Wire Harnesses and Looms, Rossell Techsys has been associated with many crucial indigenous programs like the light combat aircraft, where it has supplied the LCA Aircraft Flight Test Instrumentation Looms. It has also undertaken crucial electrical interconnect activity for indigenous Radars for use by the Indian Defense forces. Rossell Techsys has a state of art 34,000 SFT facility with all modern equipment especially for its Wire Harness Lab. Rossell Techsys is AS 9100 Rev B quality certified and a CEMILAC certified design house. Wire harness and looming Staff are IPC/WHMA-620A Certified. Rossell uses a homegrown Production Control System for manufacturing that meets the requirements of the aerospace industry and the Interconnect Solutions. Rossell sources raw materials from various globally recognized distributors in the U.S., Israel, Asia and Europe and aims at supporting growth of the supply chain in India. Geographic distances are not a deterrent, as Rossell maintains adequate stock of parts to ascertain timely availability of finished products to end customers.

2) ESSI - Electronic system and systems integration

Rossell offers products that are developed by Built to Spec (BTS) concept involving designing/manufacturing as per customer’s requirements or Built to Print (BTP), manufacturing the products to the customer specifications. The company specializes in designing electronic systems with the concept that involves circuit design, board design, corresponding software & firmware and system engineering, including packaging of electronics. Rossell can also undertake qualification of the same through tests like Safety-of-flight test (SOFT) for airborne systems. Rossell provides test solutions at multiple levels like O level – automatic equipment for non-technical end users, I level – semi-automatic test equipment for tech-savvy users, and D level – performing diverse tests at lab with competent manual testers. Rossell also offers aftermarket support to the Indian Armed Forces, wherein it extends the life of the equipment with obsolescence management and reverse engineering services, irrespective of the initial manufacture by any foreign OEM. Products have been delivered to ADA, NAL, BEL, Indian Defense Forces, DIT-MCO and others.

3) Test solution design and development including test jigs, rigs, and simulators

Rossell provides test solutions at multiple levels like O level – automatic equipment for non-technical end users, I level – semi-automatic test equipment for tech-savvy users, and D level – performing diverse tests at lab with competent manual testers. The expertise also includes integrating home grown custom solutions with “commercially-off-the-shelf” (COTS) products, systems and sub-systems, backed by home-grown skill in hardware, software, firmware, systems and Human machine interfaces (HMI). Applications in which Rossell has majorly contributed are in developing automated test solutions for the Helmet Mounted Display System (HMDS) for India’s Fourth generation fighter aircraft (FGFA), the Tejas, upgradation and modernization of the automated test solution for the Jaguar DARIN III gyro system, a complete laboratory turnkey solution for testing the fuel flow amplifier for the Jaguar fighter aircraft, including fuel tank systems, P&I, actuators, valves, a semi-automatic test solution for testing the analog cards of the Tejas aircraft, and a range of automated test solutions for leading foreign OEM flight test instrumentation (FTI) for space and defence aerospace programs. The HMI was developed using National Instruments LabVIEW or using Microsoft technologies. Customers include ADA, BEL, HAL, Indian defense Forces.

4) After Market Services:

Rossell also offers aftermarket support to the Indian Armed Forces, wherein it extends the life of the equipment with obsolescence management and reverse engineering services, irrespective of the initial manufacture by any foreign OEM. Some of the services provided include customer training, site surveys, site preparation, installation, testing and commissioning, spare parts coordination and liaison, single point of contact (SPOC) for end users, for and on behalf of global OEMs, laboratory set up, including infrastructure, “service level agreements” (SLA) based aftermarket services to global OEMs.

5) Panels and Racks
Racks may be table top mounted or floor mounted or multiple racks concatenated together to form a larger system. End Customers have been Global OEMs in aerospace and defense, space, and Indian defense forces and Indian defense design and development organizations and Indian defense manufacturing organizations.


Out of the five products & services mentioned above I could only see big opportunity size in EWIS and other areas look good but not sure of the opportunity size. Im upbeat about EWIS as there is space for everyone.

One plane of
Boeing 747 has 240 km of wiring.
Boeing 737 has 53 KM of wiring
Airbus A380 has 530 KM of wiring

Rossell has been providing EWIA to Boeing from 2013. It is the only Indian manufacturing company to have been awarded the ‘Boeing Supplier of the Year ‘ twice in 5 years (2015 and 2019). It is also the recipient of the Boeing Performance Excellence Award (BPEA), multiple times over the years that it has been performing work for Boeing.

Making products for aviation doesn’t come easy. It has to cross many checkpoints for safety and rossell had gone through many audits and has neceessary certifications.

It has undergone DCMA audits, as well as secured FAA certifications. Rossell boasts several key certifications in the industry including Aerospace Quality Management Systems- AS9100, Quality Management Systems- ISO 9001, Environmental Management Systems- ISO 14001, Occupational Health and Safety Management System- ISO 45001, Information Security Management System- ISO 27001, Ethical Transactions and Anti-Bribery- ISO37001, adherence to framework guidelines for Risk Management- ISO 31000, and few others.


GKN Aerospace is a British company… they recently opened a factory in Pune for wire harnesss… could be a potential danger for Rosselll

Motherson Sumo bought a EWIS plant in Mexico. But they mainly supply to Bombardier.

Promoters/Managers and employees and working culture :

They have good reviews by their employees. It looks like a many engineering students dream to work as they have good reputation among people. They maintain flat hierarchy and encourage employees to learn more skills. Most of the employees have certifications.

Company Financials and other metrics:


Recently they won order from Lockheed Martin and they have a healthy order book for next 5 years.

as @ayushmit mentioned they have expanded recently and I hope this brings lots fruits in the coming years.

I have no holdings (yet). But may add in the future. Thanks to @harsh.beria93 for invoking the interest in the company.


New order win from Boeing.

Disclosure: Tracking.


Rossell has moved to its newly constructed facility at Aerospace Park, near Kempegowda international Airport, Bangalore.

site at 2018:

After constructions in end of 2021.

When I measured the area it was about 16000 m2 ( square meter). That is roughly 1.7 Lakh square feet. Company said they have expanded to about 4 Lac sq ft. It could be that they are keeping their old facility for production as well.

They also opened a new office in Tempe, Arizona US. But I couldn’t find much details about it.


Ground + 2 floors = 4L sft


Hi Ayush,
Company financials seems to fine, few things reading through their annual reports

  1. Fixed price long term contracts ( if proper currency hedging not done this could turn out to be a drag), Also not known is are those contracts dollar terms or Rupee terms.
  2. Capital allocation going forward the two divisions are completely unrelated Aviation definitely huge opportunity, I own US based aviation company called Heico corporation, Indian aviation supplier eco system can grow really big. Key question where does management focus and allocate capital.
  3. Lastly is there any product liability and does these products require FAA approval ( could be moat since approvals take long time to obtain).
    Best Regards

Any new developments in Rossell?

Promoter entity subscribing to 10L convertible preference shares @156/-

Market gaining good interest in this counter this month, wonder if there are some recent developments or anticipation of a good quarter…

Discl: Invested since a year for long term


Did anyone attend the EGM today? If yes, any takeaways?


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Rossell India

Nice set-up - volumes also building up -Stage 2 as well as Wave 3

Long way to go.


As per, FY21 RoCE for aviation segment was 22% and for tea segment was 39%, yet overall RoCE is 15%. What am I missing?

Also, has the management ever commented on demerger of aviation and tea businesses?

Disc- no holdings as of now


Disc: Same as before