Wagh Bakri mulling to buy 1O tea gardens in Assam

Gujarat-based Wagh Bakhri Tea Group is planning to buy up to 10 tea gardens in Assam and is in the process of creating a corpus of around Rs 250 crore to fund the acquisitions, a top company official said today.
The company is also aiming at a revenue growth of 10 per cent to 15 per cent per annum.
At present, its annual turnover stands at around Rs 950 crore.
"The board of our company has taken a decision to go for plantations. We are looking to buy six to 10 tea gardens in Assam," said Chairman and MD of Wagh Bakhri Tea Group Piyush Desai.

Primarily into tea blending and packaging, it dominates the Gujarat packet tea market with a share of 65 per cent and also operates in other western and north Indian markets.
Desai said the company, Gujarat Tea Processors and Packers which owns the brand, was looking at a production capacity of one million kg from each plantation.

The foray into plantations was driven by the need to grow premium CTC tea for subsequent sale in branded packets, the company said.
"... Around Rs 150 crore to Rs 250 crore would be needed to fund the acquisition for which the company is looking for private equity or bank finance," Desai said.

The group, at present, is sourcing tea from Colombo and Mombasa auctions. It exports to the US, Canada, Gulf and the CIS nations.
Wagh Bakhri is also planning to form a separate company to look after setting up of tea lounges across the country, he said.