Expansion to Boost Instant Tea Production and Storage Capacity by 2025
Wagh Bakri Tea Group, one of India’s leading tea brands, is set to invest over Rs. 100 crore in a state-of-the-art manufacturing facility in Dakor, Gujarat. Scheduled to become operational by the third quarter of 2025, the plant aims to significantly enhance the company’s instant tea production and raw material storage capacity.
Sanjay Singal, CEO of Wagh Bakri Tea Group, announced the investment, emphasizing the company’s commitment to meeting growing demand, particularly in the instant tea category. “Convenience is driving consumer preferences, and this new facility will enable us to cater to that demand efficiently,” he stated.
The new unit will incorporate an Automatic Stock Retrieval System (ASRS) to optimize warehouse operations. With this setup, the company plans to increase its instant tea production capacity fivefold—from the current 3,000-4,000 packets per day to approximately 20,000 packets daily.
Additionally, the warehouse’s storage capacity is expected to grow by 50%, accommodating around 15-18 lakh chests, each holding 14-20 kg of tea.
Wagh Bakri is also intensifying its focus on e-commerce, quick commerce, digitization, and artificial intelligence in manufacturing. The company continues to expand its tea lounge network, having added 20 new lounges in the past year to complement its existing 34 outlets. “We plan to open a couple of new tea lounges every quarter, focusing on offering a premium tea experience to consumers,” Singal said.
Despite a nationwide drop in tea production by 8-12% last year, Wagh Bakri achieved double-digit growth, outpacing industry trends. Singal attributed this success to the company’s unwavering commitment to quality. “We will never compromise on the quality of our blends, even amidst pricing challenges,” he assured.
According to AC Nielsen data, Wagh Bakri holds a 9% market share in India’s tea market and sells approximately 60 million kilograms annually, with exports contributing 12-15% of total sales.
With this investment, Wagh Bakri Tea Group aims to solidify its position in both domestic and international markets, reinforcing its legacy of quality and innovation.