Goodricke Group, an India-based teas producer, plans to purchase 2500 hectares of tea plantation area in the state of Assam with an investment of INR 2.5bn ($41.9m).
With 30 tea estates, spread over Darjeeling, Dooars and Assam and having 9643 hectares of planted area, currently the company produces 16 million kilograms of tea per year.
The move forms part of the tea producer's strategy to step up tea production by another four to five million kilograms to the existing capacity.
Goodricke Group managing director AN Singh was quoted by Business Standard as saying that the company is seeking to purchase tea estates in Assam in 2013.
"The biggest challenge the Indian tea industry is facing is climate change. Erratic weather conditions are a major threat and at the root of all issues the tea industry is facing," added Singh.
Goodricke also plans to expand its retail business by expanding its tea lounge business with new outlets in Delhi and nearby towns in north India by the end of 2013.
The company is likely to begin with online sales of packet tea in international market over the next six months.
Goodricke offers retail tea under Assam 3-in-1, Barnsbeg, Castelton and Leesh River Strong brands.
