Wagh Bakri to invest Rs 100 crore for new plant in Dakor, Gujarat
The new manufacturing facility will increase the company’s capacity to 20,000 packets per day. The new facility will also boost the company's storage capacity by about 50% to around 15-18 chests, where each chest can accommodate 15-20 kg.
15 Jan 2025 | By WhatPackaging? Team
Sanjay Singal, CEO of Wagh Bakri Tea Group
Wagh Bakri Tea Group to invest Rs 100 crore to set up a new plant in Dakor, Gujarat, to increase its raw material storage capacity and instant tea output. The new facility will be equipped with an automatic stock retrieval system (ASRS).
Sanjay Singal, CEO of Wagh Bakri Tea Group, shared that the new manufacturing facility will help the company meet its expanded demand, especially in the instant tea category.
The new manufacturing facility will increase the company’s capacity to 20,000 packets per day. The current manufacturing capacity stands at around 3,000-4,000 packets per day. The new facility will be commissioned by the third quarter of 2025.
The new facility will also boost the company's storage capacity by about 50% to around 15-18 chests, where each chest can accommodate 15-20 kg.
According to AC Nielsen, Wagh Bakri enjoys a 9% market share and is the largest-selling premium tea brand (SU-PRABHAT it is third largest na? After HUL and Tata Tea) with approximately 60 million kg sales annually.
During Drinktec, Singal had highlighted the importance of tea in Indian culture and the crucial need to keep packaging affordable. Indians consume more than a billion kgs of tea in a year. At that time, Singal said, “Consider a daily routine in Delhi. A labourer and his wife start their day by purchasing essentials like milk and tea. They typically buy around half a litre of milk, 20 grams of tea, and some glucose.” This level of market penetration demands careful price management, cautioned Singal.
As an example of effective sustainability practices, Singal shared Wagh Bakri’s commitment to resource efficiency, which includes sourcing 60 million tons of tea globally and reducing plastic use by two to three lakh kilograms through streamlined operations and material reuse. “By addressing the entire value chain rather than isolated segments, we can create effective solutions to the plastic problem,” he concluded, underscoring the impact of a holistic approach.