New brew: Tata group's Amalgamated Plantations to enter tea tourism

'Any additional revenue stream welcome,' says the company that has estates in several states

Amalgamated Plantations Private Limited (APPL), an associate company of Tata Consumer Products and India’s second-largest tea producer, plans to use its estates for tourism.

APPL will test the waters with three estates in Assam and consider its property in Dooars, North Bengal. The company has 21 estates in Assam and four in Dooars. “We have filed an application for the grant from the Assam government to develop three bungalows in our Assam estates. Once it gets the go-ahead, we will tie up with a partner. And if it does well, we can replicate the model in more estates,” said Vikram Singh Gulia, managing director of APPL.

Assam’s government, last year, approved a policy for creating tea tourism infrastructure in 50 gardens with iconic bungalows. It will bear 50 per cent of the cost to develop infrastructure.
 

Assam allows 5 per cent of tea plantation land to be used for other purposes. In 2019, the West Bengal government allowed tea gardens to use 15 per cent of total grant area up to a maximum of 150 acres for tea tourism and allied business activities. Of this, 40 per cent can be used for construction.

“For North Bengal, we had connected with the Taj group just after Covid for converting the bungalow in one of our estates into a homestay. But it didn’t materialize as there is a dearth of adequate infrastructure for high-end tourists. However, we continue to look at possibilities and will adopt when the time is ripe,” Gulia said.

Indian Hotels Company Limited (IHCL), a Tata group enterprise and which runs Taj Hotels, is APPL’s obvious choice as a partner. In 2020, Taj checked into Darjeeling with Chia Kutir in the famous Makaibari tea estate. The project raised the bar for tea tourism in North Bengal and prompted many other estates to enter the business.

IHCL has three other properties under management contracts in Darjeeling: the Makaibari Bungalow; Puttabong Cottage, which is part of the Puttabong tea estate, and Wayside Villa in Kurseong under its amã Stays & Trails brand.

Gulia said that APPL was open to allying with any hospitality group, “but we see more value in partnering with the Taj Group as the brand commands trust and loyalty in India.”

It’s not just IHCL. Many estates, especially in Darjeeling have waded into high-end tourism after the success of Chia Kutir.

APPL plans to have the tea tourism business under its fold and not set up a separate arm. Stagnating prices and high costs make tea a difficult industry and revenue from tourism can help companies.

“The customers are limited for Dooars tea to regional packeteers/loose tea traders and with wage and other input costs increasing, the margins are getting impacted. Any additional revenue stream is welcome,” said Gulia.