â€œAs we grow the brand and scale up the business, we may look at retail as a separate entity. We are also looking at a range of merchandise and may formalise the same in three-four months,â€ said Parag Desai, Executive Director, Wagh Bakri Tea Group.
Wagh Bakri Tea Group is looking at hiving off its retail format as a separate entity, besides scouting for opportunities to sell a range of merchandise, reported Business Line.
The company, which has seven tea lounges, plans to add 50 more, mainly in tier I and II cities. Wagh Bakri is the third largest packaged tea company in India with a turnover of over Rs 950 crore and tea distribution of over 30 million kg.
“As we grow the brand and scale up the business, we may look at retail as a separate entity. We are also looking at a range of merchandise and may formalise the same in three-four months,” said Parag Desai, Executive Director, Wagh Bakri Tea Group.
Speaking on retail expansion, Desai said the company will expand to tier I and II cities. “We are looking to add stores and these will be in high streets. We usually don’t set up stores in malls due to high rentals and lack of quality space,” he said.
Desai further said each store will entail an investment of Rs50-75 lakh depending on the size. The company’s outlets range in size from 800 sq ft to over 2,500 sq ft. He added that the company plans to open its stores in high footfall zones such as airports, education hubs, hospitals and even hotels.
Wagh Bakri operates its stores through the company-owned/operated model. It sells about 75 variants of tea at its lounges.
Desai said the price point starts at Rs 100. It also sells a range of teas imported from Sri Lanka and Kenya.
According to a Technopak Advisors report, the per capita consumption of tea is 711 gm in India. In the estimated $6.6-billion non-alcoholic beverages market, tea commands the lion’s share at $2.3 billion.