Fresh brew

Calcutta, April 12: Goodricke Group today said it was actively looking at retailing iced-tea, both in powdered and bottled beverage forms.

Buoyed by the success of its bulk iced tea dealings, the company is scouting for a distribution partner for pre-mixed products. Iced-tea sachets are also expected to be launched this year.

“We are ready and in talks with three companies who can assist in distribution. The moment we take the final call, we will move in,” said Arun N. Singh, managing director and CEO, Goodricke Group, on the sidelines of the company’s 35th annual general meeting.

“Meanwhile, a Japanese company also wants to associate with us for bottling and pre-mixes. For the sachets, we have our own distribution network,” Singh said.

Goodricke, which has two gardens under the company name at Orangajuli and Nonaipara in Assam, intends to grow its portfolio in the state. Other gardens in the vicinity are held by the group’s associate companies.

“For acquisitions there, we will opt for an affordable, clean transaction as and when it comes through,” he said.

The company went in for a factory overhaul and upgradation and spent Rs 40 crore over the last three years. It plans to invest another Rs 10 crore in four other factories over a two-year period.

“We will upgrade two factories this year and two more will follow next year,” Singh said.

Goodricke expects a 4-5 per cent increase in production this year in line with that of the industry. In 2010, total manufactured crop stood at 20.58 million kilograms against 19.96 million kilograms in 2009.

Export targets for the year are at around 3 million kilograms, almost matching the levels of last year. Germany, meanwhile, is emerging as the new export destination for Assam tea, Singh said.

On wage revision, Singh said the final round of talks for the revision in Dooars would follow after the Assembly elections. “Though it will be higher than the last negotiations, it will not reach the levels of the Darjeeling wage hike,” he said. The Dooars account for around 15 million kilograms of the total production of the company.