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Goodricke to tone up replantation

KOLKATA: Goodricke Group Ltd., which has over 10,000 hecatares under tea plantation, is planning to step up replantation and garden rejuvenation efforts, even as it takes up a drive to modernise its tea factories.

Talking to reporters after the annual meeting, A. N. Singh, managing director (operations) and CEO, said that Rs. 11 crore would be spent on capital expenditure in 2008. This included programmes in the field and the factories.

Earlier, company Chairman P. A. Legatt said the Meenglas tea factory in Dooars had been completely rebuilt with latest machines. Similar programmes were under way in a phased manner. With gardens in Assam, and Dooars and Darjeeling in West Bengal, the group produced a record 21.2 million kg of tea in 2007. The turnover was higher at Rs. 237.40 crore in 2007 on increased sales and improved prices, especially for orthodox tea. The profit before tax was higher at Rs. 10.50 crore. A dividend of 15 per cent was paid in 2007 against 12.5 per cent in 2006.

However, the instant tea plant did badly during 2007 due to loss of some crucial orders, which have now been won back. Mr. Singh admitted that the plant was idle for part of the year.

The two gardens at Darjeeling too suffered due to poor productivity and the company’s profits would have been better but for these two factors, according to Mr Legatt.

On the company’s replantation programme, Mr Singh said that about 80 hectares had been uprooted and replanted over the last seven years. However, the Centre’s Special Purpose Tea Fund had not enthused the company much, since it felt that funds were available at a cheaper rate.

On the industry outlook for 2008, the company saw a shortage emerging in the face of rising demand and a lower crop.

On the reopening of the sick gardens, the company welcomed the initiative of the Central and State governments, but remarked that it would be interested in a takeover only “if it was a right product at a right price.” It felt that most of the 17 gardens closed in West Bengal were very small and very rundown.

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