💰 Financial Performance

Revenue Growth by Segment

The company operates primarily in the tea segment. While specific segment revenue growth is not disclosed, India's overall tea production declined by 7.82% YoY (from 1,394 million kg to 1,285 million kg) in 2024, which likely impacted domestic volume growth.

Geographic Revenue Split

The company is a major exporter to Germany, UK, USA, and the Middle East. Foreign exchange earnings for the year were INR 6.18 Cr (618.13 Lakhs), while foreign exchange outgo was INR 4.56 Cr (456.01 Lakhs).

Profitability Margins

Profitability is under pressure as selling prices fail to keep pace with rising input costs. The average net profit for the purpose of CSR calculation was INR 0.0672 Cr (6.72 Lakhs).

Capital Expenditure

The company disposed of two major assets, Dhoedaam Tea Estate and Rajah Alli Tea Estate, on a going concern basis during FY25. Expenditure on Research and Development was NIL.

⚙️ Operational Drivers

Raw Materials

Tea leaves (100% internally sourced), fertilizers, pesticides, and fuel (gas, electricity, diesel).

Import Sources

Not disclosed, but tea estates are located in the South Bank, Upper Assam belt.

Capacity Expansion

The company currently operates four tea estates in Upper Assam. Capacity was reduced during the year following the disposal of the Dhoedaam and Rajah Alli Tea Estates.

Raw Material Costs

Raw material costs are rising due to the escalation of prices for pesticides and fertilizers. The company maintains a policy of not purchasing 'bought leaf' to ensure 100% quality control and traceability.

Manufacturing Efficiency

Efficiency is driven by the modernization of equipment and regular workshops for staff on agricultural practices and manufacturing processes.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company aims to achieve growth by focusing on increasing the yield and quality of its CTC and Orthodox teas. It is diversifying its portfolio to include health-oriented tea varieties to capture growing domestic demand and expanding its presence in high-value international markets like the USA and Germany.

Products & Services

CTC Tea and Orthodox Tea.

Brand Portfolio

James Warren Tea.

New Products/Services

Introduction of a wide range of tea varieties to cater to health-conscious consumer preferences.

Market Expansion

Focus on major export markets including Germany, UK, USA, and the Middle East.

🌍 External Factors

Industry Trends

Global tea production increased to 7,053 million kg in 2024, while Indian production fell 7.82%. There is a notable industry shift toward diversified, health-focused tea portfolios.

Competitive Landscape

Competes with both domestic Indian tea producers and global producers in a market where world production is increasing (up 4.84% YoY).

Competitive Moat

The company's moat is based on its location in the 'top quality belt' of South Bank, Upper Assam, and its 'no bought leaf' policy, which ensures superior quality and 100% traceability compared to competitors who mix leaves.

Macro Economic Sensitivity

Highly sensitive to global tea production trends (which grew 4.84% in 2024) and domestic consumption shifts driven by health trends.

Consumer Behavior

Increasing domestic consumption in India is being driven by the perceived health benefits of tea.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Tea Act 1953, Tea Rules 1954, Plantations Labour Act 1951, and various Tea Control Orders (Distribution, Export, Waste, and Marketing).

Environmental Compliance

CSR activities include planting avenue trees and forestry projects to promote a pollution-free environment.

Legal Contingencies

No significant material orders were passed by regulators or courts impacting the company's going concern status during the year.

⚠️ Risk Analysis

Key Uncertainties

Climate change and global warming pose a high risk to tea quality and harvest volumes. Additionally, the mismatch between rising input costs (wages/fuel) and stagnant selling prices is a critical business risk.

Geographic Concentration Risk

High; 100% of the company's tea estates are located in Upper Assam.

Third Party Dependencies

Low for raw materials (self-sourced leaf), but high for energy utilities and labor.

Technology Obsolescence Risk

Low; however, the company is continuously upgrading factory equipment to maintain manufacturing efficiency.