💰 Financial Performance

Revenue Growth by Segment

The LED division recorded nil revenue in FY2021; tea segment revenue figures for FY2025 are not disclosed in available documents.

Profitability Margins

Interest coverage was 51.55x in H1 FY2022, down from 89.77x in FY2021; Total Debt/OPBDIT was 0.11x in FY2020 compared to 1.40x in FY2019.

Capital Expenditure

The company proposed an increase in investment and loan limits to INR 250 Cr in Nov 2025 to achieve long-term strategic objectives; historical rated amount for facilities was INR 45 Cr.

Credit Rating & Borrowing

ICRA BBB+ (Stable) was reaffirmed in Feb 2021 and withdrawn in April 2022 at the company's request; borrowing powers were proposed for increase via postal ballot in Nov 2025.

⚙️ Operational Drivers

Raw Materials

Tea leaves (representing the primary cost for the tea division); LED components (percentage of total cost not disclosed).

Capacity Expansion

Planned acquisition of new tea estates to expand production capacity; specific current and planned MTPA not disclosed.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Diversification into LED lights for Government departments and strategic acquisition of additional tea estates to increase premium tea output and market reach.

Products & Services

Premium quality tea, LED lights.

Brand Portfolio

The Grob Tea Company Limited.

New Products/Services

LED lights for Government entities; revenue contribution was nil in FY2021.

Market Expansion

Targeting Government departments for LED supply and expanding the tea estate footprint through debt-funded acquisitions.

🌍 External Factors

Industry Trends

The tea industry is shifting toward premium quality production; the LED sector is driven by Government procurement cycles; the company is positioning itself through diversification.

Competitive Landscape

Intense competition in the global tea market and from other LED suppliers bidding for Government department contracts.

Competitive Moat

Established track record since 1895 and a focus on premium quality tea production provide a sustainable competitive advantage in the tea industry.

Macro Economic Sensitivity

High sensitivity to global tea demand-supply situations which directly impacts the profitability of Indian tea players.

Consumer Behavior

Global shift towards premium tea consumption affecting demand for the company's high-quality output.

Geopolitical Risks

Global tea market fluctuations and international trade dynamics affecting export-quality premium tea.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (LODR) Regulations 2015, Companies Act 2013 (Sections 180, 186), and tea industry standards.

Legal Contingencies

No fraudulent or illegal transactions reported for FY2024-2025; no directors debarred or disqualified by SEBI or MCA as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Profitability and ramp-up of the LED business and the impact of large debt-funded tea estate acquisitions on financial risk profiles.

Third Party Dependencies

High dependency on Government departments for the LED business line and global market demand for tea exports.

Technology Obsolescence Risk

Technological shifts in the LED lighting industry requiring continuous product updates.

Credit & Counterparty Risk

Receivables from Government entities for LED supply contracts.