We need Rs 40 cr to tide over the crisis: Gouri Prasad Goenka

Interview with Chairman, Duncan Goenka Group

The Duncan Goenka Group has been in the news lately for all the wrong reasons — 18 workers allegedly associated with its tea gardens have died due to starvation, the government has initiated a Criminal Investigation Department inquiry, and none other than the West Bengal Chief Minister has threatened to take over the gardens. In an interview with Ishita Ayan Dutt, Gouri Pasad Goenka, Chairman, Duncan Goenka Group, clarifies on the allegations levelled against him. Edited excerpts:

How many workers associated with you gardens have died in recent months?
Bagracote supposedly had 15 or 18 deaths since September. But fact of the matter is, Bagracote tea garden is only one part of Bagracote panchayat. There were actually two deaths concerning Bagracote - one came under a train, and the other death was due to a medical condition.

Did you not inform the state government that the deaths were not connected to your gardens?
I had sent medical reports of the two individuals to the state government.

How many workers are associated with the Duncan gardens?
Around 18,000 people are employed by Duncan across 15 gardens who have another 30-35 dependents.

Workers' wages are pending, what is the reason behind the cashflow problem?
The gardens were never closed. They were open but there were no workers. Competitors gave them extra incentive to stay away from Duncan gardens. So June-August, none of the gardens had any workers, there was zero attendance. No workers means no crop, no crop means no money.

What is the backlog in wages?
In three gardens, there is no oustanding, in two, we are down to 15 days and the rest would be a month and a half.

Have they been paid bonus?
We paid 60 per cent bonus in October and 40 per cent, we are supposed to pay in July.

Is it true that you lost control of most of the gardens?
In Birpara, workers are selling the tea leaves on their own, but now with the cold weather approaching, they have been wanting to come back because soon there will be no leaf to sell. We are pushing it back, we have put forth our charter of demands, which is at par with the rest of the industry. In two other gardens too, workers were doing the same, but we entered into an agreement there. We are trying to get the discipline back.

How much cash do you need immediately to tide over the crisis?
We need Rs 40 crore. My internal plan is by March 31, I will not only clear the wages but also the backlog.

How will you raise the resources?
We will borrow and sell some assets. We have an estate, Dimdima under Shantipara Tea Co, which can be sold immediately. For selling gardens under Duncan Industries, we need approval from lenders because it's a BIFR company. I don't have that kind of time.

Long-term, how many gardens would you have under Duncan Industries?
Probably, 13

Will that solve your problem?
I hope to break-even next year. We will probably produce 11 million kg out of 15 next year.

What was this year's production?
1-1.5 million kg.