Indong Tea Company Limited is an established Indian tea producer and emerging diversified agri-business. Founded in **1990**, the company operates the historic Indong Tea Estate, a century-old plantation in the Western Dooars at the foothills of the Himalayas. Following its successful listing on the **BSE SME Platform** in **February 2023**, the company has embarked on a strategic transformation to modernize its core tea operations while diversifying into multi-commodity trading and sustainable agri-ventures. --- ### Asset Base and Manufacturing Infrastructure The company’s operational foundation is the Indong Tea Estate, located in Matelli, Jalpaiguri, West Bengal. The estate is strategically positioned to produce high-quality **CTC (Crush, Tear, Curl)** tea. * **Estate Scale:** The total granted area covers approximately **740.38 hectares**. * **Nursery and Replanting:** The company maintains a robust nursery with a capacity exceeding **10 lakh plants**. In the most recent cycle, **4,95,264** plants were added to ensure plantation longevity. * **Modernization Upgrades:** Utilizing IPO proceeds, the company has overhauled its processing facilities: * Installation of a **380KVA Genset** for uninterrupted power. * New **sorting machines** and a modernized **humidification plant** to optimize leaf grading and processing. * Automation of the on-site workshop to support 24/7 factory operations. * **Technology Integration:** Implementation of **PACE** (Plantation Administration in Critical Environment) ERP and **BlueEye** Artificial Intelligence dashboards for real-time plantation management. ### Product Positioning and Market Performance The company’s flagship brand, **'Indong Gold'**, is positioned in the premium segment of the Indian tea market. It has consistently achieved record-breaking valuations at public auctions, distinguishing the company from generic commodity producers. | Period | Metric | Value (per kg) | | :--- | :--- | :--- | | **FY 2024-25** | Peak Auction Price (CTC Category) | **₹1,120** | | **FY 2023-24** | Highest Price (CTC Category) | **₹1,001** | | **FY 2022-23** | Peak Auction Price (CTC Category) | **₹1,151** | ### Strategic Pivot: Diversification and Agri-Expansion In **March 2025**, Indong Tea formally amended its Memorandum of Association (MOA) to transition from a pure-play tea producer to a broad-based agri-products entity. This shift is designed to mitigate the seasonal risks inherent in tea production. * **Multi-Commodity Trading:** Expansion into the wholesale and retail trading of pulses, jute, rice, coffee, oilseeds, spices, and medicinal plants. * **Dairy and Organic Integration:** * Establishment of a dairy facility for **73–78 'Deshi' Gir cows**. * In-house production of **Vermi Compost** using dairy waste to improve soil structure and reduce reliance on chemical fertilizers. * **Tea Tourism:** Plans are underway to leverage the estate’s Himalayan location for **Tea Tourism** and allied hospitality projects. * **Sustainability:** Implementation of solar pump sets for irrigation and street lighting, alongside coal savers and energy-efficient motors to reduce the carbon footprint. ### Financial Performance and Capital Structure The company transitioned to **Ind AS** reporting in **FY 2022-23**. While the industry faces headwinds in the Dooars region, Indong Tea has shown a recovery in turnover and a return to marginal profitability. **Key Financial Metrics** | Metric (₹ in Lakhs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Turnover** | **3,033** | **2,132** | **2,104** | | **Net Profit / (Loss)** | **2.66** | **(194.00)** | **66.79** | | **Paid-up Equity Capital** | **1,942.10** | **1,500.10** | **1,500.10** | **Production Data (In KG)** | Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Green Leaf Harvested** | **45,65,976** | **42,28,969** | **47,95,532** | | **Total Tea Produced** | **10,60,376** | **12,40,109** | **11,61,587** | **Fundraising and Liquidity** * **IPO (2023):** Raised **₹13.01 crore**; proceeds were fully utilized by **September 2024** for plantation extension and machinery. * **Preferential Issue (2025):** Allotted **44,20,000** shares at **₹30** per share (including **₹20** premium), raising **₹13.26 crore** toward a **₹27 crore** target for working capital. * **Banking Migration:** Shifted credit facilities to **Axis Bank** with a **₹6.00 crore** Cash Credit limit and **₹5.08 crore** in term loans. * **Investment Limits:** The Board authorized an increase in investment/loan limits to **₹1,000 crore** in **October 2024** to facilitate future strategic acquisitions. ### Certifications and Compliance Standards The company adheres to rigorous national and international quality and ethical standards: * **Trustea Code** (Tea Board of India) * **ISO 22000:2018** (Food Safety Management System) * **HACCP Codex** & **CODEX GMP** (Good Manufacturing Practices) * **Rain Forest Alliance (RFA)** guidelines for sanitation and worker welfare. * **MSME Status:** Registered as a Small Enterprise (**UDYAM-WB-10-0010686**). ### Risk Profile and Mitigation Strategies Management maintains a structured internal control system to address the following vulnerabilities: * **Climatic and Biological Risks:** Yield is highly sensitive to unpredictable weather and pests. Mitigation includes **irrigation infrastructure** and **soil enrichment** programs. * **Regulatory and Legal:** * **SEBI Warning:** Received in **February 2025** regarding non-disclosure of a pending litigation (**Case No. CS 153/2020**) in the initial prospectus. * **GST Inspection:** A **November 2025** inspection by the Bureau of Investigation is currently under legal review; operations remain unaffected. * **Labor and Statutory Costs:** High reliance on manual labor (**1,346 employees**). Costs are dictated by the **Plantation Labour Act** and **Minimum Wages Act**. * **Financial Risks:** * **Credit Risk:** Low, as sales are primarily **cash-and-carry** via auctions. * **Liquidity Risk:** Managed through the recent **₹13.26 crore** capital raise to buffer against the seasonal nature of the tea crop (**March to December**). * **Promoter Activity:** In **February 2026**, **IBM Finance and Investment Pvt Ltd** increased its stake to **8.41%** following an NCLT-sanctioned merger, while the **Brahmaputra Commodities** group reduced its stake to **1.133%** in **September 2025**.