Goodricke Group eyes growth in value-added segment

KOLKATA: Goodricke Group Ltd (GGL), one of the country���s leading players in the tea space, is stepping up its presence in the value-added segment. The company, which now markets 6 million kg through packets, plans to increase it to 10 million kg within three years.

The company has also firmed up plans to introduce ready-to-drink (RTD) teas in India shortly. RTD teas will be produced at the company���s instant tea factory at Aibheel in North Bengal. GGL has already developed four flavoured RTD teas at the factory and these have already started attracting enquiries.

Talking to newsmen on the sidelines of the company���s AGM on Tuesday, A N Singh, managing director and CEO said: "We need some clearance from the government for introducing RTD teas in the Indian market and we are working on that."

Earlier, GGL chairman P A Leggatt told shareholders that the instant tea plant holds patent rights on hot water soluble and cold water soluble instant teas in some of the major tea producing/consuming countries. "Some more patent applications are under process," he informed the shareholders.

GGL���s packet tea operations maintained a growth trend in a competitive market in calendar 2008. It has established itself as a profitable business centre with inroads into new territories and strengthening its presence at various retailing points.

Firming up of tea prices in 2008 has helped the company take ahead its capex programmes. "On account of firmer prices, the finances of the company were generally comfortable with lower drawdown of bank facilities. The company���s susbtantial capital expenditure programmes in the field and factories were financed through internal funds and from term borrowings," Mr Leggatt added.

In 2008, the company produced 21.52 million kg. It owns 17 tea estates, out of which 12 are in Dooars, 3 are in Assam and Darjeeling each.