Wagh Bakri looks to achieve 15% growth rate this fiscal
The Dollar Business Bureau
Tea firm Wagh Bakri looks to achieve 15% growth in its revenue to Rs.1,150 crore this financial year.
"Our turnover is Rs.1,000 crore and we are looking at least 15% growth this year," Wagh Bakri Tea Group Executive Director Parag Desai told PTI.
Desai said the firm’s growth has been stagnant in the last two years due to lack of rainfall and downturn in economy.
Wagh Bakri’s annual tea sales is about 40 million kgs, with tier II and tier III cities accounting for almost 90% of the company’s total tea sales. The packaged tea firm aims to introduce 10 new flavours over the next two years.
Desai said the company plans to establish a new manufacturing unit, but will make investments only after the GST is rolled out.
"We have a big plan lined up, provided the next three-four years the monsoon is good, and more importantly the GST bill is passed in Parliament."All our investments will be based on these two things. If GST happens, we can pick and choose based on the logistics and the best possible place (to set up the new facility).
"Right now, all our manufacturing happens in Gujarat. We may have to move out of Gujarat and we are looking forward to it, provided GST rolls out," he said. The tea manufacturer has four manufacturing plants in Gujarat.
Wagh Bakri’s online business has been expanding at a double pace. Desai believes the online business could contribute 5-7% of the company’s total revenues over the next five years.
The company has launched several brands such as Wagh Bakri Tea, Good Morning, Mili and Navchetan. It exports these brands to Australia, Canada, Europe, Fiji, Malaysia, Middle East, New Zealand, Singapore and the US.