Kolkata-based tea maker Indong Tea Company lists on BSE SME exchange

Credit and finance for MSMEs: The company's revenue from operations stood at Rs 13.24 crore while it recorded net profit of Rs 2.04 crore for the period ending September 2022.

Written by MSME Desk

February 22, 2023 19:50 IST

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The company was taken over by Hariram Garg, the promoter of tea exporting company Asian Tea & Exports in August 2014.

Credit and finance for MSMEs: Kolkata-based tea maker Indong Tea Company became the 417th company to get listed on the BSE SME Platform on Tuesday after completing its public issue on February 13th. The company is engaged in tea plantation and manufacturing of CTC Tea and includes CTC (crush/cut, tear, curl) tea, tea and tea plantation, tea manufacturing process, plucking, withering, rolling, fermentation, drying, grading, and packing/dispatching among its portfolio of products and services. Its issue price was fixed at Rs 26 per share and the initial public offering comprised a fresh issue of 50,04,000 equity shares of face value of Rs 10 each for cash at Rs 26 per equity share.

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Indong Tea Company has a tea garden Indong Tea Estate for producing CTC tea in West Bengal. The company was taken over by Hariram Garg, the promoter of tea exporting company Asian Tea & Exports in August 2014 and had invested fresh capital and installed new machinery which resulted high yields plantations produced, according to the company’s website. Its revenue from operations stood at Rs 13.24 crore while it recorded net profit of Rs 2.04 crore for the period ending September 2022.

“As part of our growth strategy, our focus is on increasing sales, reduction of operational costs, achieve efficiency, quality assurance and leverage and enhance our goodwill in the market through expansion, diversification and spread in geographical outreach. We believe that our growth in local market can fetch us new business expansion and opportunities,” new agency ANI quoteed Hariram Garg, Managing Director, Indong Tea Company as saying.

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“Our emphasis is on scaling of our operations in other markets which shall provide us with attractive opportunities to grow our client base and revenues. We are hopeful that after the proposed public issue, we will be able to execute our growth strategy in a manner that creates exponential value for all stakeholders while consistently delivering quality products,” he added.

According to the India Brand Equity Foundation, India was the second-largest producer of tea globally. A total of 6.37 lakh hectares of area was cultivated in India for tea production, according to a survey in 2018. Moreover, India is one of the world’s top tea-consuming nations, with 80 per cent of the tea produced in the country consumed by the domestic population. India’s total tea production for the calendar year 2020 was 1,257.52 million kg and for the financial year 2020-21 it was 1,283 million kg. In May 2022, India’s tea production stood at 127.11 million kgs, and it was at 91.77 million kg in April 2022. From January-September 2022, India’s tea production stood at 984.67 million kg.