Goodricke Net Profit Jumps By 88 Per Cent

Goodricke Group Ltd, the Calcutta-based tea major, has registered an increase in net profit of around 88 per cent during 1996 to Rs 3.28 crore against Rs 1.74 crore in 1995. The Board announced a dividend of Rs 1.25 per share at the annual general meeting held in the city yesterday. The turnover of the company also increased by about 3.5 per cent to Rs 120.8 crore during 1996 against Rs 116.7 crore in the previous year.

Peter Leggatt, chairman of the Goodricke group, said production had increased by eight per cent despite the fact that there were some dry periods in the Dooars which reduced total crop.

 

Goodricke's emphasis on value addition led to substantial increase in the sale of packet tea, which rose to 7.35 million kg in 1996. The company's Instant Tea plant at Aibheel was commissioned for commercial production in April 1996 and initial supply orders have already been received from the European and US markets. Leggatt highlighted Goodricke's efforts towards increasing exports to the Russian market through Project India Blend Ltd (PIB). PIB is a joint venture company formed by Indian tea majors.

which will focus on creating a brand image of Indian tea. This company started operations with exports of one million kg of tea in its first year ended March 31, 1997. The target for the second year is three million kg. Goodricke has a 20 per cent stake in the joint venture.

The company expects good trading results for 1997 owing to normal weather conditions and steady auction prices. The worldwide production of tea in 1995 and 1996 was slightly higher than the total global consumption, which may result in carryforward in 1997. However, Leggatt said, this is not expected to have any negative effect on the Indian tea market as the global crop situation for 1997 indicates a downward trend, especially for Kenyan production.