Goodricke Group Ltd expects the share of its consumer division, which deals with branded retail business, to increase to 40 per cent of its total turnover in the next 2-3 years. The division currently accounts for about 25 per cent of its turnover, which stood at around ₹750 crore as on March 31, 2019.
According to Atul Asthana, Managing Director, Goodricke Group, the increase in share of its retail business will come from strengthening of its geographical footprint — particularly in the less-penetrated southern markets — aggressive marketing campaign and setting up of tea cafes and lounges to enhance brand visibility. “The whole country (most of the tea producers) is moving into the consumer business (as it is more profitable),” Asthana told
The company expects to sell around 11.3 million kg (mkg) of tea under the branded tea segment, almost 10 per cent higher than the 10.3 mkg it sold last year. While a large part of the tea sold under the retail business comes from its own bought leaf produce, the remaining is purchased through auctions or other channels.
Some of the brands under which the company sells its tea include Goodricke Chai, Samovar, Castleton and Khaass among others.
Expansion ding footprint
When the company ventured into the branded tea business about two decades back, it was merely present in 2-3 States. However, now it has presence in almost all the States, said PT Krishnan, Vice-President, Consumer Division.
The branded tea business, which grew by around 8 per cent last year, is expected to grow by around 10 per cent this year.
The company had acquired eight tea brands of Godfrey Phillips India Ltd in 2017. Goodricke already had a strong presence in Madhya Pradesh, West Bengal, Punjab and Haryana and the acquired brands helped strengthen its footprint in Bihar, U.P, Jammu & Kashmir and Maharashtra.
Some of the brands under which the company sells its tea include Goodricke Chai, Samovar, Castleton and Khaass among others.
“We have been largely concentrated on North Indian markets. Though we are present in Andhra Pradesh, Telangana and Tamil Nadu but merely present. Our focus on these states is going to start from October this year. We hope to touch half a million kg of sales in these states this year,” Krishnan said.
Tea lounges
The company, on Sunday, set up its second premium lounge – The Tea Room under the Goodricke Teapot initiative in partnership with the Tea Board of India in Kolkata. The first outlet – Margaret’s Deck - was set up near Darjeeling. It also plans to open two more lounges one in Mumbai and another one at Mirik near Darjeeling by the end of this year.
Besides lounges, the company also operates under cafes and kiosks format.