Madhu Jayanti Group, which has bought the packet tea brands of Eveready Industries of Williamson Magor Group, is hoping to touch Rs 300crore mark in packet tea business in next four-five years. The group would also set up tea boutiques in rural India and start pilot project in Maharashtra soon. The Rs 500crore group has bought Tez Red, Jaago and Premium Gold from Eveready for Rs 6 crore. The executive director of Madhu Jayanti International said that the combined volume of the three packet tea brands acquired by them is 3.8 million kg. Besides this, the group in India has three existing packet tea brands — Lalpan, Saraswati and Sphoorti — which have a combined volume of 1.6 mkg.
The total volume of packet tea for Madhu Jayati would be around 5.4 mkg. He pointed out that the combined turnover of the three acquired brands is around Rs 68.3 crore, while the sales value of its own brands is Rs 55 crore. “The sales volume of the three Eveready brands was flat for the last few years. We hope with proper promotion and push these brands can go up to Rs 150 crore in next 4-5 years going by its brand equity. Our existing brands, too, can more than double in next four-five years,” he added. Madhu Jayanti now has presence in only Karnataka and Maharashtra through its existing brands.
But with this acquisition, it will have footprint in 14 states in packet tea segment. “Around 80% business of packet tea of Eveready used to come from UP, Uttarakhand, Rsjasthan, Bihar, Jharkhand, MP and HP. The packet tea brands of Eveready are in lower price point compare to our brands so this would help us to cover more ptice points,” he added.
The turnover of Madhu Jayanti is around Rs 390 crore, out of which Rs 261 crore comes from exports and Rs 129 crore is domestic consumption. Apart from Rs 55 crore from packet tea, it has a revenue of Rs 55 crore from private labels and Rs 19 crore from ‘Tea-A-Me’, a value-added tea. The group also has a subsidiary in Russia which has a turnover of Rs 110 crore.
Source: Times of India
