The fertiliser and packet tea major already has 13 tea estates in the Dooars, Terai and Darjeeling. Its tea production increased to 16.96 million kg during 1998-99 against 16.25 million kg in the previous year despite poor production in March this year because of adverse weather.

In August 1998, when the company's turnover was poised to cross Rs 1000 crore, it had planned at a board meeting to acquire more tea gardens.

The tea estate now in Duncan's sights has an area of around 180 hectares. Company officials declined to comment, but insiders said the deal is stuck over the price factor which is learnt to be close to Rs 3.5 crore.

During 1998-99, Duncans had revalued its 12 tea estates, following which the revaluation reserve has nearlydoubled to Rs 357 crore from Rs 187.18 crore as on March 31, 1998.

Lately the company has been bettering its packet tea sales over the previous year's mark. During 1998-99, higher production resulted in packet tea sales increasing to 19.63 million kg from the Duncans systems.

All its major brands -- Runglee Rungliot, Diamond, Sargam, Shakti and No 1 -- had recorded growth trends during 1998-99. Revenue from tea, which accounts for 20 per cent of the total turnover, is expected to touch Rs 450 crore in another four years.

According to sources, the company will be convening an extra-ordinary general meeting in the last week of June for securing shareholder's approval to merge four of its investment companies with a subsidiary.

At an EGM on January 11 this year, chairman GP Goenka had announced that the merger will be part of the restructuring exercise. Goenka had pointed out to the shareholders that this will reduce the loan exposure by Rs 100 crore in these companies.

The group has six companies inthe financial segment of which four are investment companies -- Dail, Golconda, Quandong and Umagouri. Duncans management was slated to file a merger petition before the Calcutta high court during the first half of 1999.