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| Goenka: Shifting gear |
Calcutta, Sept. 24: Tea company Duncans Industries expects to expand its portfolio into other agriculture verticals within a year. The company, however, refused to give details about the areas of focus.
“We are going to be an agriculture company. We will expand in agriculture. That is our focal area, that is our strength. Lots of options are being looked at. All the developments will take place a year from now. Right now we are looking at the technical feasibility. And then we will look at the economic feasibility… but tea will be our main agricultural product,” said G. P. Goenka, chairman and wholetime director of Duncans, on the sidelines of the company’s 18th annual general meeting here today.
Meanwhile, the company is expecting its tea production to go up to 18.5 million kg next year from about 16 million kg.
Of the 16 million kg it produces, Duncans sells 3 million kg under brands Rangeela and Tarana. The remaining 13 million kg is sold through the auction route.
“We are growing reasonably fast here. My target will be achieve a compounded annual growth rate of 20 per cent year-on-year. That is an area doing well. We do not export our tea. Our tea is meant for the local market,” he said.
Poor weather conditions and sparse rainfall have affected production during the season. However, prices have remained firm. The new season tea of 2012 has opened on a buoyant note with prices increasing about Rs 40 per kg over the previous year.
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