Wagh Bakri to Invest ₹100 Crore in Greenfield Instant Tea Unit in Gujarat.

Gujarat Tea Processors and Packers Ltd (GTPPL), the company behind the popular "Wagh Bakri" tea brand, is investing ₹100 crore to establish a new greenfield instant tea unit in Gujarat. The facility, set to increase the company’s annual instant tea production by five times, will be located near Dakor in the state and is expected to be operational by the third quarter of 2025.

Sanjay Singal, the newly appointed CEO of GTPPL, explained that the new unit will significantly enhance both the supply of instant tea and the capacity for storing raw materials. "This unit is being set up to meet the growing demand, especially in the emerging instant tea category," Singal said. He further noted that a major portion of the investment will go toward setting up a temperature-controlled system for storing raw materials, alongside an Automated Storage and Retrieval System (ASRS) and a dedicated blending line for instant tea production.

GTPPL, which operates three units in Dholka near Ahmedabad, currently manufactures 60 million kilograms (mkg) of tea annually. The new unit will increase the company’s capacity by five times, with daily instant tea production growing from 3,000-4,000 packets to 20,000 packets. Additionally, the new plant will boost storage capacity by 50%, enabling the company to store 15-18 lakh chests of tea, each weighing 14 kg.

Singal added that the company had seen higher volume growth than the industry average, necessitating increased tea procurement this year. While most of GTPPL’s tea comes from North and South India, the company also imports smaller quantities from Kenya and Sri Lanka. Despite fluctuations in raw material costs, Singal indicated that the company does not foresee further price hikes in the near future.

Wagh Bakri currently holds an 80% market share in Ahmedabad, while nationally, its market share stands at about 9%. The company’s revenue, which exceeds ₹2,000 crore, has been growing at a rate of 10-12% annually. In addition to its tea products, GTPPL operates around 55 tea lounges across the country, further expanding its brand presence.

HBL