- Madhu Jayanti sells tea both through private labels and its own brand, either in tea bags or packets.
- It was founded in 1942 by the late Jayantilal Shah.
Madhu Jayanti International acquired Eveready’s packed tea business and its brands including Tez Red, Premium Gold, and Jaago for an amount of Rs. 6 crores.
The company mostly deals into the manufacture and export of value-added teas is looking mark its foothold in the domestic business with the recent acquisition of Eveready’s business. The combined sales volume of the acquired brands is estimated to be close to 3.8 million kg and the value is recorded at around Rs. 68 crores.
Primary sales of Madhu Jayanti international comes from international markets such as Australia, Russia, West African Nations, and West Asia. The entity sells tea both through private labels and its own brand, either in tea bags or packets.
Sumit Shah, Executive Director of Madhu Jayanti said that this acquisition will help in the company’s domestic business. “With the addition of these brands, we plan to make ourselves more prominent in the tea business. In India, we look to be a national player, rather than a regional one,” Shah said.
Plans to capture the domestic market
The company has started eyeing the Indian market and expanding after largely focusing on the international market. It has launched two new brands Sphoorti and TE-A-ME teas on back of its existing packaged tea brands- Saraswati Tea and Lalpan Tea- sold in Karnataka and Maharashtra. Sphoorti is restricted to Maharashtra while TE-A-ME is sold pan India.
Eveready’s packed tea business operates in 14 states of India which consists of Bengal, Bihar, Jharkhand, Odisha, Uttar Pradesh, Madhya Pradesh, Chattishgarh, Rajasthan, Punjab, Himachal, Gujarat, Maharashtra, and Karnataka.
Hence this acquisition will give Madhu Jayanti access to 12 more states and markets apart from Maharashtra and Karnataka.
Domestic sales currently account for nearly 33 percent of the company’s total turnover at around ₹129 crore. The acquisition of the brands is likely to scale up its value sales to ₹198 crore, immediately. This is expected to further increase to nearly ₹350-370 crore in the next five years, backed by the addition of new brands and expansion into newer markets
Madhu Jayanti was founded in 1942 by the late Jayantilal Shah. In 1980, it became a pioneer in value-added exports. By 1985, they pioneered the teabag export business from India.
With this acquisition, Madhu Jayanti becomes pan India player now and has expanded to 12 more states. Eveready already being a leader in the tea market with established brands will help them grow their domestic market.
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