Goodricke plans foray into FMCG and hospitality biz
It would sell off two more of its gardens, along with two already sold, to fund the upcoming projects.
In hospitality, Goodricke has identified assets in Kolkata, Dooars and Darjeeling for conversion into hotels and is in talks with leading hospitality groups.
Goodricke vice-chairman and MD A N Singh, speaking to TOI after its 49th AGM on Tuesday, said it has big plans to become an FMCG company. This would include milk products, horticulture products and white label products, which would be procured by the company and packaged and marketed under the Goodricke brand along with tea.
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Singh said they have started discussions with 2-3 leading hospitality groups for identification of property and management contracts for tea tourism. "We will monetise some assets in Kolkata, Dooars and other areas," he added.
Some companies like Luxmi Tea have tied up with the Taj Group in Makaibari.
Singh said they have identified one property in Mirik where the number of rooms would be increased from 6 to 20 and then handed over for management to a leading group.
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"We will do the infrastructure," he said.
Replying to shareholders, Singh added that the company would also do a lot of horticulture crops, including turmeric, garlic and ginger. It would set up a piggery as well. The Bengal govt has allowed 30% of garden area for alternative use while Assam has granted 5%, he pointed out. "We are in talks with Bengal govt to uproot some non-tea growing areas for alternative businesses," he said.
Elaborating on restructuring of the tea business, Singh said that after selling two gardens for Rs 44.6 crore, the board has approved the selling of two more gardens in Darjeeling and Dooars. The company is likely to get Rs 25 crore from this. "We might choose a couple of gardens more to finance our diversification projects," he added.
Goodricke, along with its sister concerns in India, has 27 gardens; it alone has 18 gardens.
The production is 13.7 million kg in Dooars, 2.9 mkg in Assam and 0.4 mkg in Darjeeling.
Goodricke reported a financial turnaround in FY 2024–25 by posting a revenue of Rs 929 crore, up from Rs 824 crore in the previous year. The net profit stood at Rs 20 crore, reversing a loss of Rs 69.3 crore in FY24.
Goodricke chairman Stephen Buckland, in his address, expressed concern over climate change. "Risks persist in the form of climate variability, increasing regulatory requirements and competition from both established brands and local packagers," he said.
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