The company reported a loss of Rs 60.73 crore in FY’24, up from Rs 11.88 crore in the previous year
New Delhi: Dhunseri Tea and Industries Ltd, a leading tea manufacturer based in the city, stated that the outlook for the tea industry is positive due to increasing domestic demand, despite challenges that require government support.
“Increasing manufacturing costs have put pressure on margins, and the industry faces a difficult phase due to unfair competition from the unorganised sector. The industry expects effective incentives from authorities,” the company informed shareholders in its latest annual report.
The company reported a loss of Rs 60.73 crore in FY’24, up from Rs 11.88 crore in the previous year. The loss was despite the company’s tea production for 2023-24 being higher at 20.44 million kg, with 13.09 million kg coming from Indian operations and 7.35 million kg from offshore operations, it said.
The company stated that realisation was lower due to subdued tea prices. The management noted that the tea industry faces challenges such as weather uncertainties, increasing production costs, and unfair competition from the unorganized sector. Nevertheless, with the growing demand for tea in the domestic market, Dhunseri Tea expects a positive outlook.
The company currently owns 12 tea estates, along with their respective tea estate factories, all located in Assam.
As part of its programme to rationalise operations and improve profitability, the company disposed of Hatibari Tea Factory (formerly known as Bahadur Tea Estate Factory) and Shivani Tea Factory (formerly known as Santi Tea Estate Factory) during 2023-24.
