26 May 2004 06:15
Limtex To Expand Nargis" Export Mart, Eyes $25-m Sales
Limtex India Ltd, the Kolkata-based merchant tea export house, is planning to take its Nargis brand beyond the
Russian market. Limtex is planning to export the brand to other CIS countries like Ukraine and Kazakhstan, apart from
taking it to new markets like the UAE, Iraq, the US and Afghanistan. Speaking to FE, Gopal Poddar, chairman &
managing director of Limtex India, said that the company is eyeing sales worth $25 million for Nargis in the overseas
market within the next three years. "We have acquired the world rights for Nargis and will push it in all the
markets that hold a potential for it," says Mr Poddar. Limtex had last year acquired Nargis - the packet tea brand
conceptualised for the Russian market named after the legendary film actress immensely popular in Russia. Nargis
belonged to the erstwhile Project India Blend Ltd (PBIL) which was a special purpose vehicle created by a consortium of
leading tea companies like Tata Tea, Warren Tea, Williamson Magor, Rosell Industries and the Goodricke group to
primarily market Indian tea to Russia. Nargis was the sole brand owned by PBIL. After Limtex acquired the Nargis brand,
the company appointed a Russian firm called Vostachini to redesign the product. Limtex has also appointed a leading
Russian tea distributor called Sapson to distribute Nargis across Russia. According to Mr Poddar, Sapson is also the
distributor for all leading international tea brands like Dilmah, Ahmed Tea, Akbar Tea and Lipton. Limtex is eyeing a
business of about $12 million a year from exports to Russia alone. The company is rolling out the brand in India as well
and has so far launched it in the select markets of West Bengal, Orissa, Bihar, Andhra Pradesh, Rajasthan and Punjab.
According to Mr Poddar, the brand will have a pan-India presence by end-2004. Limtex is also planning to launch a
sub-brand called Hot Choice for Nargis which will be a quality wholeleaf south Indian tea, exclusively catering to the
Indian market. The Rs 200-crore Limtex has also tied up with retail chain Pantaloons to sell the Nargis brand across
India. According to Mr Poddar, the company is also in talks with the Canteen Stores Department and West Bengal
cooperative retail outlets "Swamavayika" to sell its tea. Limtex, which is the sole selling agent for the
Goodricke group in the eastern region, is also a major exporter of bulk tea to countries like Poland, Russia, Germany,
Japan, the UAE, Iraq, Syria, the US, Kenya, Tunisia and Sudan, among others. According to Mr Poddar, the company is
eyeing sales of six million kgs of packet tea within the next three years in the domestic market. However, the company
is planning to close the current year with sales of one million kgs of Nargis packet tea.
[Financial Express] |
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