Goodricke puts off plans to diversify

Tea major Goodricke group has put its diversification plans on the backburner for the year.

The company was exploring agricultural diversification and had restructured the board last year and K S David, managing director of Goodricke group, was redesignated as managing director (diversification).

Speaking to mediapersons after the company's annual general meeting, P A Leggatt, chairman, Goodricke group, said the diversification plan had been put on backburner since resources were limited. The focus area for 2007 would be tea.

However, the group would continue to explore diversification plans. Goodricke options included the one in which Camellia, its parent company, operated.

One option being considered is wine. Leggatt said the company considered importing wine to India and producing it in the country. But has decided not to go for any major diversification this year.

Goodricke will utilise its resources in re-organising its tea factories in the current year, said B N Ghosh, managing director (finance and corporate affairs).

Goodricke would also look at increasing its market share in packet tea. At the instant tea market, there was a demand-supply imbalance, which impacted profitability. "Efforts are on to resolve the marketing issues of this value-added product and there are now encouraging enquiries from overseas buyers," said Leggatt.

Addressing shareholders, Leggatt said, the productivity at the gardens had improved. "Darjeeling gardens have produced quality teas and have been appreciated greatly in overseas markets. However, the low yields and higher cost of production are not contributing to any large measure to the company's profitability."

During the year, the total manufactured crop was higher at 19.3 million kg compared with 17.7 million kg in the previous year, increase of 8 per cent.