Goodricke Group drops diversification plans

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 accordingly last year. K S David, managing director of Goodricke Group, was redesignated 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.

The group, however, would continue to explore diversification options including the ones in which Camellia Plc, its parent company, operated. One of the options considered was wine. Leggatt said the company considered both options of importing wine and producing it in the country but then decided not to go for any major diversification this year.

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

Addressing shareholders, Leggatt said productivity at the gardens had improved, and the higher crop was a testimony to the same. "Darjeeling gardens have produced quality teasm, which have been appreciated  in the overseas markets. However, the low yields and higher cost of production is not contributing to any large measure to the company's profitability."

During the year, the total manufactured crop was 8% higher at 19.3 million kg when compared with 17.7 million kg in the previous year. This was achieved through increase in own crop as well as purchase of green leaf.