?Fabindia to supply organic tea to China next year

Fabindia, one of the country's largest private retailers of ethnic wear and other traditional products holds a controlling stake in Organic India, a Lucknow-based organic food and supplements firm.

So if everything goes well with the regulatory approvals, Organic India plans to embark on its journey into China next year.

As part of the process, Organic India had hired a Chinese consultancy to study potential for Indian ayurvedic products in China.

Abhinandan Dhoke, Chief Executive, Organic India, said, "We saw a huge potential there."

He said the company has partnered with the same consultant to help work on its entry strategy for China.

Dhoke said, "We are going to enter with our tea category. We are predominantly into green tea and other infusion of herbs so that is very relevant category that exists over there."

Dhoke said, "Historically China has been a tea-drinking or herbal-tea drinking country."

Organic India was founded in 1997 by Bharat Mitra, a former disciple of Lucknow-based spiritual teacher the late HWL Poonja, fondly known as 'Papaji'. Mitra came to India in the 1980s in search of truth and self-realisation, and ended up establishing a business that supports livelihood of thousands of farmers in the area.

Today, it sells its products across the country through 25 own stores besides Fabindia outlets and hundreds of general retailers, and exports to 35 countries including the US, most of Europe, the Middle East and some African countries. In 2015-16, Organic India had a turnover of Rs 205 crore.

Fabindia, acquired a 40 percent stake in Organic India in 2013, and later increased it to 50 percent.

Rajiv Lochan, Principal, Siliguri-based Lochan Tea, who has been exporting Darjeeling tea to China since 2008, said, "Indian companies already selling tea in China, however, say it would be an uphill task to hawk herbal tea in that country. The reason being they have their own versions of herbal tea and that is a matter of taste."