Goodricke brews deal
Goodricke Group Ltd, the country's largest producer of Darjeeling tea, will acquire the packet tea business of Godfrey Phillips India (GPI) for Rs 20 crore.
- Published 18.10.17
Calcutta: Goodricke Group Ltd, the country's largest producer of Darjeeling tea, will acquire the packet tea business of Godfrey Phillips India (GPI) for Rs 20 crore.
The deal will give the rights to Goodricke Group on the trademarks, titles and brands associated with brands such as Tea City, SC Gold, Symphony, Samovar, SC Premium, Super Cup, Rangoli and Utsav.
The acquisition is part of Goodricke's plan to drive aggressive expansion in the packaged tea business. "This acquisition will bring synergy to our branded tea business and help us integrate all channels and develop this department further," A.N Singh, CEO and MD of Goodricke Group Ltd, said in a statement.
At present, Goodricke earns 30 per cent of its revenue from packet tea. After this acquisition, the share of the packet tea sales will go up by another 10 per cent.
Vikram Singh Gulia, vice -president of Goodricke Group, said the GPI brands would add another Rs 100 crore to the packet tea business. "Our estimate is that the packet tea business will touch Rs 270 crore after the acquisition," Gulia said.
This acquisition is expected to reinforce Goodricke's position in packaged tea.
At present, Goodricke is managing a business of 9 million kg through the packet tea route that may touch 14 million kg after absorbing the Godfrey Phillips brands, distribution and operations.
States such as J&K, Punjab, UP , Bihar, Rajasthan and Himachal Pradesh would be the key markets for growth.