Goodricke Group Ltd, based in Kolkata, is planning out acquisition of Godfrey Phillips India Ltd’s packaged tea business for Rs 20 crore ($3 million). The sale is in line with Godfrey’s decision to exit the packaged tea business, which contributed less than 3 per cent of its gross sales. In FY17, the company’s domestic packaged and bulk tea business clocked a turnover of Rs 105 crore, according to its annual report.
The packaged tea brands sold by Godfrey Phillips include Tea City, SC Gold, Symphony, Samovar, SC Premium, Super Cup, Rangoli and Utsav.
Mumbai-based Godfrey Phillips is in the business of manufacturing cigarettes and chewing products, and in trading of tobacco products, tea and other retail products. The branded tea business was the single-largest contributor to the company’s profits in FY17, as per its annual report. Total income in FY17 figured at Rs 694.81 crore while net profit was Rs 33.13 crore.
The packaged tea brands of Goodricke include Castleton, Barnesbeg, Thurbo, Khaass, among others. Goodricke Group operates 17 tea gardens in West Bengal and Assam.