Wagh Bakri Tea to Invest Rs 1 Bn in new Gujarat Manufacturing Unit
ECONOMY & POLICY

Wagh Bakri Tea to Invest Rs 1 Bn in new Gujarat Manufacturing Unit

Ahmedabad-based Wagh Bakri Tea Group is planning to establish a new plant in Gujarat with an investment exceeding Rs 1 billion to enhance its raw material storage and instant tea production capacities, according to CEO Sanjay Singal. Singal, who took on the role of CEO in August last year, stated that the new facility would increase the company's capabilities in instant tea production and raw material warehousing.

The upcoming warehouse is expected to feature an Automatic Stock Retrieval System (ASRS). Singal explained that the company is setting up the manufacturing unit to cater to the growing demand, particularly in the instant tea segment, driven by consumer preference for convenience. He added that the facility, to be located in Dakor, Gujarat, will require an investment of over Rs 1 billion and is projected to become operational by the third quarter of 2025.

With this plant, Wagh Bakri aims to boost its instant tea production capacity fivefold, increasing from the current 3,000–4,000 packets daily to approximately 20,000 packets per day. Additionally, the company plans to expand its storage capacity by 50 per cent, accommodating 15–18 lakh chests, each capable of holding 14–20 kilograms of tea.

The group continues to diversify its product portfolio, launching new offerings monthly and expanding its chain of tea lounges across various cities. It also intends to intensify its focus on e-commerce, quick commerce, digitisation, artificial intelligence in manufacturing, and big data analytics. In the financial year 2023–24, the company began with 34 tea lounges and added 20 more. Singal revealed plans to add a few outlets each quarter, with the goal of providing high-quality experiences and making tea more engaging for consumers, rather than pursuing aggressive expansion.

Despite an 8–12 per cent decline in India’s tea production compared to the previous year, Wagh Bakri has reported higher production volumes, achieving double-digit growth. Singal noted that pricing adjustments would depend on next year’s production, with an emphasis on maintaining the quality of blends regardless of pricing pressures.

According to AC Nielsen data, Wagh Bakri holds a 9 per cent market share, making it the leading premium tea brand. The company sells approximately 60 million kilograms annually, with 12–15 per cent of the volume exported. Singal also highlighted that Wagh Bakri’s volume growth outpaces the category average by 4–5 times, while its value growth is expected to be 10–12 per cent higher than the previous year.

Ahmedabad-based Wagh Bakri Tea Group is planning to establish a new plant in Gujarat with an investment exceeding Rs 1 billion to enhance its raw material storage and instant tea production capacities, according to CEO Sanjay Singal. Singal, who took on the role of CEO in August last year, stated that the new facility would increase the company's capabilities in instant tea production and raw material warehousing. The upcoming warehouse is expected to feature an Automatic Stock Retrieval System (ASRS). Singal explained that the company is setting up the manufacturing unit to cater to the growing demand, particularly in the instant tea segment, driven by consumer preference for convenience. He added that the facility, to be located in Dakor, Gujarat, will require an investment of over Rs 1 billion and is projected to become operational by the third quarter of 2025. With this plant, Wagh Bakri aims to boost its instant tea production capacity fivefold, increasing from the current 3,000–4,000 packets daily to approximately 20,000 packets per day. Additionally, the company plans to expand its storage capacity by 50 per cent, accommodating 15–18 lakh chests, each capable of holding 14–20 kilograms of tea. The group continues to diversify its product portfolio, launching new offerings monthly and expanding its chain of tea lounges across various cities. It also intends to intensify its focus on e-commerce, quick commerce, digitisation, artificial intelligence in manufacturing, and big data analytics. In the financial year 2023–24, the company began with 34 tea lounges and added 20 more. Singal revealed plans to add a few outlets each quarter, with the goal of providing high-quality experiences and making tea more engaging for consumers, rather than pursuing aggressive expansion. Despite an 8–12 per cent decline in India’s tea production compared to the previous year, Wagh Bakri has reported higher production volumes, achieving double-digit growth. Singal noted that pricing adjustments would depend on next year’s production, with an emphasis on maintaining the quality of blends regardless of pricing pressures. According to AC Nielsen data, Wagh Bakri holds a 9 per cent market share, making it the leading premium tea brand. The company sells approximately 60 million kilograms annually, with 12–15 per cent of the volume exported. Singal also highlighted that Wagh Bakri’s volume growth outpaces the category average by 4–5 times, while its value growth is expected to be 10–12 per cent higher than the previous year.

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