Goodricke wants to acquire 2,500 ha of tea estates

The Goodricke Group, the Kolkata-based tea plantation entity, is thinking of expanding in Assam.

"We are looking for some tea estates in Assam for acquisition this year. To add another four to five million kg to existing production, we would require around 2,500 hectares of plantation area," said A N Singh, managing director. The company is likely to invest around Rs 250 crore for this.

"We want to scale up our production. Hence, we are considering several proposals for acquisition. But the valuations seem to be high at present," said Singh.

As on December 2012, it had 9,643 hectares of planted area. It produces around 16 million kg a year, of which half is sold in packet form. Goodricke has 30 tea estates, spread over Darjeeling, Dooars and Assam.

The company sells retail tea under Assam 3-in-1, Barnsbeg, Castelton and Leesh River Strong brands.

Singh says the company's production will grow seven to eight per cent annually, much higher than the sectoral growth rate of around one per cent.

"The biggest challenge the Indian tea industry is facing is climate change. Erratic weather conditions are a major threat and at the root of all issues the tea industry is facing," said Singh during his recent visit to Anand, close to here.

On retail expansion, the company is planning to expand its tea lounge business. The BSE-listed group plans to set up tea lounges in Delhi and nearby towns in north India by the end of this year. Presently, the tea lounge business contributes only a marginal proportion to total revenue. However, the company looks at this as a brand building exercise and expanding its presence among retail consumers. So far, the Wagh Bakri group and Girnar Tea, both regional entities, have marked their presence in the tea lounge business.