Godrej forays into tea business, unveils two brands

The Rs 4,000-crore (Rs 40-billion) Godrej group has officially announced its foray into the Rs 9,000-crore (Rs 90-billion) tea business through Godrej Tea.

The company is launching two tea brands -- Godrej Noble House and Godrej Chai House -- nationally.

Pranab Barua, MD,  Godrej Tea, said: "We are focused on being a consumer centric, niche player in the tea industry."

The Godrej group, through Godrej Industries, holds a 65 per cent stake in Godrej Tea. Barua holds 20 per cent and A Mahendran, managing director of Godrej Sara Lee, holds a 15 per cent stake.

The capital base of the company is around Rs 15 crore. Adi Godrej, chairman of the Godrej group, is the chairman of the new venture. The other directors include Jamshyd Godrej, Nadir Godrej and Mahendran.

Godrej Noble House is a blend of Assam and Darjeeling teas. Godrej Chai House is a blend of teas from select gardens.

Godrej Noble House is priced at Rs 55 for a 250gm pack of the leaf variant and Rs 48 for the dust variant.

Godrej Chai House is priced at Rs 40 for a 250gm pack of the leaf variant and Rs 37 for the dust variant. Godrej Chai is positioned as a mid-premium brand, while Godrej Noble is positioned in the premium category of the Rs 4,000-crore (Rs 40 billion) branded tea market.

The group is outsourcing its requirements from the auction market, while the blending and packaging of teas is done at various locations across the country.