Business

Tea Board to house GGL tea lounges

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Award of tender part of TBI’s plans to use idle assets

Goodricke Group Ltd. (GGL) will set up tea lounges on the premises of Tea Board of India (TBI) in Mumbai and at its headquarters here.

The space at Mumbai, located in downtown Church Gate, is spread over 3,360 square feet, while the space at Kolkata is smaller at 1,420 square feet and is located within the imposing headquarters of the TBI.

Senior TBI officials confirmed that Goodricke had won the tender to operate tea boutiques at these two places against annual rentals.

On the one hand, this is part of TBI’s plan to utilise its idle assets (it plans to give out six floors); on the other hand, it aims at popularising tea-drinking, which seems to be on the wane among the youth. GGL MD Atul Asthana told The Hindu this would be developed under the Tea Pot vertical of GGL.

GGL, which produces 36 million kg annually with gardens in Assam, Dooars and Darjeeling, has a major presence in the branded segment selling about 11 million kg. It already has a tea room in Darjeeling district called Margaret’s Deck and two more in Indore and Bhopal in Madhya Pradesh. It has a franchised lounge in the IT enclave on the city’s eastern fringes.

GGL officials said that the new lounges would be ready by July, offering tea, tea-based beverages and snacks.

Domestic consumption

According to a study, 80 % of the tea produced in India is consumed domestically, although per capita consumption in the country is low when compared with global standards.

Ready-to-drink teas accounted for 5% of the market and tea drinking was skewed towards the north and west, with these two regions accounting for 63% of the consumption, followed by the east and the south.

Thrust on quality

Alongside initiatives to boost consumption, TBI is also taking measures to improve quality. It has issued guidelines in this regard. It will conduct random checks on tea factories and will destroy tea which do not conform to norms. Stringent action would also be initiated against the manufacturers or licensee as per the provisions of the Tea Act it said in a circular this week.

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Printable version | Jan 18, 2020 6:45:59 AM | https://www.thehindu.com/business/tea-board-to-house-ggl-tea-lounges/article26524990.ece

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