For upgradation and uprooting of old tea bushes at its gardens, tea manufacturer Goodricke Group Ltd is all set to invest around Rs 11 crore during the current financial year.

Goodricke Managing Director and CEO A N Singh stated that the upgradation plan would be financed through internal accruals and term loans.

The company owns 15,000 hectares field under tea cultivation at its gardens in West Bengal as well as Assam.

Mr. Singh also told that during the existing year, tea costs would remain firm because of short supply.

While lecturing on the sidelines of the company’s AGM, Mr. Singh said that the company has to fulfill 22 million kg of extra demand this year and prices would be firm.
 
The industry has begun 2008 on a cheering note with a lower quantity of carry over stock. The shortage in crop and higher domestic use were likely to give rise to enhanced prices for quality teas.
 
But Singh commented that cost was also climbing 10-12% annually and the major cost head was labour plus social cost.
 
Besides, fertiliser cost had also augmented 30% in the recent year.

Goodricke also expects to register a good growth this fiscal for its instant tea business. At the end of December 2007, the company had posted revenue of Rs 237 crore.

P A Legatt, chairman, Goodricke Group Ltd, said, that the group was confronting stiff competition in instant tea in African and Chinese markets but good growth was expected from the packet tea and instant tea segments
 
“The instant tea plant provides an excellent facility for value addition to tea. It is one of its kind in eastern India and is in the heart of tea growing areas in north Bengal. It holds patent rights on hot water soluble instant tea and cold water soluble instant tea in some of the major tea producing /consuming countries,” he said.