New Delhi, Mar 4: Packaged tea firm Wagh Bakri is targeting 20 per cent revenue growth next fiscal and also looking to expand tea lounge business, a top company official has said.
“While the country was closed for three months (due to lockdown imposed by the government) due to COVID-19, we managed to recoup lost sales. We will have single digit revenue growth for the current financial year. The way the business is bouncing back, we are looking at 20 per cent growth in the next financial year,” Wagh Bakri Tea Group Executive Director Parag Desai told PTI.
The Gujarat-based privately held company expects to close the current fiscal with revenue of Rs 1,400 crore.
The company, which at present has 15 tea lounges and 50 kiosks, is also looking to expand its tea lounges.
Wagh Bakri opened its first tea lounge in the Delhi NCR region after the outbreak of the COVID-19 pandemic.
“We have decided that we are going to improve tea imagery in India… We want to expand our tea lounge business. In the next fiscal, we plan to open 50 tea lounges and 60-80 kiosks. These lounges are company owned and the total investment required for opening tea lounges and kiosks would be around Rs 30 crore,” Desai said.
Desai said at present contribution of tea lounges to sales is not very significant.
“We are not doing it (lounges). It is business. It is a passion… We believe over time, we will be able to cover up accumulated losses. It is in investment phases in the next 3-4 years,” he added.
The company offers brands like Wagh Bakri Tea, Good Morning, Mili and Navchetan which are also sold in the US, Canada, Middle East, Europe, Australia, New Zealand, Fiji, Malaysia, Singapore, among others.
Exports contribute 5 per cent to overall sales for the company. (PTI)
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