Ironman 3 Report
Uploaded by
vikas chaurasiaIronman 3 Report
Uploaded by
vikas chaurasia
A project report on
5740.970547943
«A STUDY INTO THE FMCG SECTOR IN INDIA
$%&%%$%#
(TEA INDUSTRY)”
%&$%#
2011
SUBMITTED BY
$&%%
Vishal Tripathi
'8,%75,9
ROLL NO. 10113
#
UNDER THE GUIDANCE OF
&#%&
Dr. Taruna Gautam
7%,7:3,,:9,2
Soy
An
x
re
TE
; [hannnſ[
»[Þur'{]
nw
sell
e
IÞ*
ae
Pa
Department Of Management
05,7920391,3,02039
INSTITUTE OF MANAGEMENT EDUCATION, SAHIBABAD
$%%&%%&%$
ATSHT
TE EZ Institute of Management Education
=== = G.T. Read, Sahibabad, Ghaziabad - 201 005 (U.P)
mera
CERTIFICATE
#%%
This8 8
%
%8 is 94
8 to .0791
certify
94.079 that9 9
1 9,
9,9 the0 prject
90 study 990/
570.9 89:/ titled $%&
“A$%&
STUDY % INTO %
% THE
% FMCG
SECTOR IN INDIA
$%#
(TEA &
%
% INDUSTRY)”
&$%#$%# is ,
8
8 a bonafied
-4
-43,
3,110/ work
0/ 4
47 carried
7 .,
.,77
770
0/ out 9 by
/ 4:
4:9 - Vishal, %75
- '8
'8, Trpathi in
,9 3
%75,9
partial fulfillment of the requirement for the award of Post Graduate Diploma in
5,79,1:120394190706:70203914790,,7/41!4897,/:,90542,3
Management approved by AICTE under our guidance and direction.
,3,02039,5574;0/-%:3/074:7:/,3.0,3//70.943
Guided by: Dr. Taruna Gautam
:/0/-7%,7:3,,:9,2
Signature:
$3,9:70
ACKNOWLEDGEMENTS
%$
It is my pleasure and honor to present this report and say a few heartfelt words
98250,8:70,3/434794570803998705479,3/8,,100,7910947/8
for the people040705,79419870547933:20
147905045 who were part 419870547933:2074:8
147905045040705,79 of this report in numerous ways, people04,;0
74:8,85045 who gave
,8504504,;0
a lot of support right from the stage of conceiving the project.
,49418:554797917429089,041.43.0;3905740.9
I am extremely grateful to my guided by Dr. Taruna Gautam, 4,8-003,
,20970207,901:942:/0/-7%,7:3,,:9,2 who has been a
motivator
249; and source of inspiration.
249;,947,3/84:7.0413857, His uninhibited
,947,3/84:7.0413857,9438:33 guidance
9438:33-90/:/ and valuable0958
-90/:/,3.0,3/;,:,- tips
,3.0,3/;,:,-0958
have been responsible to put in my best efforts in working on this project. My
,;0-0037085438-0945:932-0890114798347343985740.9
special thanks to him for giving me a direction for the project.
850.,9,38942147;320,/70.943147905740.9
OBJECTIVES
% OF THE$%&
%'$% STUDY
'$%$%&
The purpose of this study is to get familiarized with the Indian Tea Industry and
%05:75480419889:/894091,2,70/9903/,3%0,3/:897,3/
its marketing to International markets. In order to accomplish this objective, the
982,70939439073,943,2,7098347/0794,..4258984-0.9;090
present project covers the following objectives:
57080395740.9.4;0789014434-0.9;08
e %49905708039,709$.03,74413/,%0,3/:897
O To highlight the present Market Scenario of India Tea Industry.
e %
O To4 0,2
examine
0 ,23
30 the0 prospects
0 9
90 57
5748
4850
50.9
.98 of India
8 41
41 3/
3/, Tea, Industry
, %0
%0, 3/
3/:8
:897
97 in 90
3
3 the0 International
9 3907
39073,
3,9
943
43,
,
Market
,709
e %4/039190574-028413/,%0,3/:8975479949039073,943,
O To identify the problems of India Tea Industry Export to the International
Market.
,709
°* %434908.03,744147/%0,,709
O
To know the scenario of World Tea Market.
e %470.42203/8420.4770.9;020,8:708947084;090574-028
O To recommend some corrective measures to resolve the problems
METHODOLOGY OF THE STUDY
%%$%&
This research is an elaborate study to enable us to understand the whole scenario
%87080,7.8,30,-47,9089:/9403,-0:894:3/0789,3/90408.03,74
of1 India
4 Tea
3/, % 0, Industry
3/:897 9to4 9the
0 International
390
9073 market.
73,,943, 2 ,7
,7 Collected
09 data
40.90/ /,9, ,and
3 /
information were tabulated, processed and analyzed critically in order to make
31472,9430709,-:,90/574.0880/,3/,3,0/.79.,347/07942,0
the study more informative, fruitful and purposeful.
9089:/247031472,9;017:91:,3/5:754801:
In preparing this report I have used secondary data and information .Most of the
35705,7398705479,;0:80/80.43/,7/,9,,3/31472,9434894190
data have been collected from secondary sources. The secondary information is
/,9,,;0-003.40.90/174280.43/,784:7.08%080.43/,731472,9438
collected from various, ,79.0870,90/990%0,!,39
.40.90/1742;,74:8
.40 articles related with the Tea !,39,943%0,,709
.90/1742;,74:8,79.0870,90/990%0, Plantation, Tea Marketing,
,943%0,,7093
3
Newspapers,
085,50
08 India Tea 4,7/,3/
5,50783/,%0, Board, ,3/
783/,%0,4,7/ and 0-
Web 5479,39073,943,
portal, International
0-5479,39073,9 Tea Boards, !
43, %0,4,7/8
%0,4,7/8 EPB,
!
Food and Agricultural Organization (FAO) etc.
44/,3/7.:9:7,7,3,94309.
Content
439039
PARTICULARS
!#%&#$ PAGE
! No.4
1. INTRODUCTION
%#&% 7
Policies and food Laws
!4.08,3/144/,8 |
10
Key players in India
05,07833/, Il
2.8947190,
History Of tea | 12
Global tea industry
4-,90,3/:897 16
Global competition
4-,.42509943 20
Characteristics of tea Industry
,7,.90789.84190,3/:897 7
SWOT Analysis of Indian Tea industry
$%3,88413/,3%0,3/:897
2
3
diPAysislayers
%45 in tea industry and their SWOT
!,078390,3/:897,3/907$%
,3,88 1
Recommendation to improve their market share |
#0.42203/,943942574;09072,7098,70 41
References
#010703.08 43
5.
Conclusion
43.:843 45
CHAPTER 1
!%#
FAST MOVING CONSUMER GOODS (FMCG)
$%'$&#$
We regularly talk about 9938090,-:9907549,
070:,79,,-4:
070: things like090,-:9907549,94.589449
,79,,-4:9938 tea, butter, potato94.5894495,89
chips, toothpastes, razors,
5,89087,478
087,478
household
4:
4:80
804/ care0 products,
4/ .,7
.,70 57
574/:
4/:.98 packaged
.98 5,.
5,.,0
,0/ food ,3/
/ 144/
144/ and beverages,
,3/ -0;
-0;07,
07,08 etc. :
0809.
09. But 9 /4
:9 do we
/40 know
0 3
34
4
under which category these things come? They are called FMCGs. FMCG is an
:3/07..,90479080938.420%0,70.,0/88,3
acronym for ,894;3438:20744/8
,.7432147 Fast Moving Consumer Goods, .70107949389,90-:
which refer to things that we buy
from local supermarkets on daily basis, the things that have high turnover and
17424.,8:5072,709843/,-,88909389,9,;09:734;07,3/
are relatively cheaper and there cost is relatively low.
,7070,9;0.0,507,3/9070.489870,9;04
FMCG
industry,
3/:
3/:8897
97 alternatively
,
,90
90773,
3,9
9;
;0
0 called
.,
.,
0/ as
0/ ,8
,8 CPG
! (Consumer
!
43
438:
8:2 07 packaged
207 5,.
,.,
,0/ goods)
0/ 44
44/8
/8
industry
3/:
3/:89 7 primarily
897 572
572,7
,7 deals
/0,
/0 8 with
,8 9
9 the0 production,
9
90 57
574/
4/:.9
:.94
43 distribution
3 /89
/897-
7-:9
:94
43 and/ 2
3 ,3
,3/ marketing
,7
,709
093 of
3 41
consumer packaged goods. The Fast Moving Consumer Goods (FMCG) is those
.438:2075,.,0/44/8%0,894;3438:20744/889480
consumables
.4
.438
38:2
:2,-
,-0
08 which
8
.
. are0 3
,7
,70 normally
47
472
2,
, consumed
.438
.438:2 0/ by
:20/ - the0 .438
- 90
9 consumers
.438:2
:207
078 at ,
8 ,9
,9 a 70
regular
70:
:,
,7
7
interval.
3907; Some of the prime activities
3907;,$42041905720,.9; of FMCG industry
,$42041905720,.9;908413/:89 are selling, 2,7093
908413/:897,70803 marketing,
7,708032,7093
financing,
13,
13,3.
3.3 purchasing,
3 5:7
5:7.
.,8
,83
3 etc. %
09.
09. The0 3
%0 industry
3/:
/:89
897 also
7 ,84
, engaged
84 03
03,
, in 45
0/ 3 operations,
4507,
07,94
9438
38 supply
8:55
8:55
chain,
.,
.,3 production
3 574
574/:.
/:.94
943 and 03
3 ,3/
,3/ general
0307,
07, management.
2 ,3,
,3,0203
02039 This8 project
9 %
%8 574
5740.
0.9 helps
58 us
9 058
0 :8 understand
:8 :3/
:3/0789
0789,3/
,3/
the %0,,7098
90 Tea Markets ,85,7941903/:897
as part of the FMCG industry.
Key Segments:
0$020398
The FMCG sector consists of four product categories, each with its own hosts of
%080.947.4388984114:7574/:.9.,9047080,.99843489841
products that have relatively quick turnover and low costs:
574/:.989,9,;070,9;06:.9:734;07,3/4.4898
Fabric wash (laundry soaps and
,-7.,8,:3/784,58,3/
8synthetic
3909. /detergents);
09070398
Household Care
4:804/,70 Household
4:804/4/ Cleaners(dish/utensil
0,3070788/8:90 :9038
.cleaners,
0,3078 1floor
447 .cleaners,
0,3078 9toilet 409
.cleaners,
0,3078 air
,7 1fresheners,
70803078
insecticides and mosquito
380.9./08,3/2486:94
repellents, metal polish and
70500398209,548,3/
furniture polish)
1:739:70548
Oral
7, care, .,70 hair
,7 .care,
,70 8skin
3
care,
.,70 personal
507843, wash
, 8
Personal Care
!07843,,70 (soaps);
84,58 .cosmetics
48209.8 ,and
3 /
9toiletries;
409708 deodorants;
/ 04/47,398
perfumes;
5071:208 1feminine
02330
hygiene; paper products.
0305,507574/:.98
Health
0,9 beverages;
- 0;07,08 Tea;
% 0, 8soft
419
Food & Beverage
44/0;07,0 drinks;
/738 products
574/:.98 (biscuits,
-8.:98
bread,
-70,/ .cakes);
,08 8snack
3,. 1food;
44/
.chocolates;
4.4,908 ice .0 .cream;
70,2 .coffee; 41100
8soft
419 /drinks;
738 processed
574.0880/ 1fruits,
7:98
vegetables;
; 009,-08 dairy
/,7 products;
574/:.98
bottled water; branded
-4990/,907-7,3/0/
POLICIES:
!$
India
3/
3/, has 03,.9
, ,8
,8 enacted
03 0/ policies
,.90/ 54
54
.0
.08 aimed
8 ,2
,20/ at ,9
0/ ,9
,9 attaining
,99,
9,3
33 intemational
3 3907
39073,
3,9
943
43, competitiveness
, .4
.425
2509
099
9;0
;0308
3088
8
9through
74: lifting
193 4of1 9the
0
quantitative
6:,
6:,39
399,9
9,9;0 restrictions,
;0 708
70897.
97.94
9438
38 reduced
70/
70/:.0/ excise
:.0/ 0.
0.8
80 duties,
0 /:9
/:908
08 automatic
,:9
,:942
42,9
,9. foreign
. 147
1470
03 investment
3 3;
3;0892
0892039
039
,and
3/ 1food
44/ laws
,8
resulting
708
708:9
:93 in ,3
3 3 an 03;
environment
03;74
7432
32039 that9 148
039 9,
9,9 fosters
1489078 growth.
9078 7
749
49 100 per
507 cent 9 05
507 .03
.039 export
05479 oriented
479 47
47039
0390/
0/
units
:398 .can
,3 be
-0 8set09 up
:5
by govemment
- 4;0732
07320039 approval
574;, ,and
39 ,55
,5 3/ use
:80 4of1 1foreign
47 3 brand
47003 names
-7,3/ 3,
3,2
208 is 3
08 8
8 now
4 1freely
4 700
00
permitted.
5072990/
Food laws:
44/,8
Consumer protection against adulterated food has been brought to the fore by
438:20757490.943,,389,/:907,90/144/,8-003-74:994901470-
"The
%
%0 Prevention
0 !7
!70;
0;03
039
943 ofFood
43 41
4144/ Adulteration
44/ /:
/:9
907
07,9
,94
43 Act 9 !
3 .
.9 (PFA),
1954",
! which
. applies
. ,55
,5 508 to
08 94
94
domestic
/4
/42208
089
9. and/ 2
. ,3/
,3 imported
254
5479
790/ food
0/ 14
144/ commodities,
4/ .42
.4224/4/9
90
08 encompassing
8 03
03.4
.42
25,
5,88
883 food
3 144/
14 colour
4/ .44
.44:7 and/
:7 ,3/
,3
preservatives, pesticide residues, packaging, labeling and
570807;,9;085089./0708/:085,.,3,-03,3/
Regulation of sales
#0:,943418,08
10
KEY PLAYERS IN THE INDIAN FMCG INDUSTRY IN INDIA:
!#$%&$%#
425,3
425,3
1. Hindustan Unilever Ltd.
3/:89,3&30;079/
2. %3/,3%4-,..4425,3
ITC (Indian Tobacco Company)
3. 089F3/,
Nestle India
4. &
GCMMF (AMUL)
5. ,-:73/,9/
Dabur India Ltd
6. 8,3!,3983/,
Asian Paints (India)
7. Cadbury India
,/-:73/,
8. 79,33,3/:897089/
Britannia Industries Ltd.
9. !74.907,2-0030,3/0,9,70
Procter & Gamble Hygiene and Health Care
10. Marico Industries Ltd
,7.43/:897089/
Il
CHAPTER 2
!%#
HISTORY OF TEA
$%#%
12
Little
99
990 did/
0 //
/ Chinese
3
3080 Emperor
080 2
2507
50747 Shen
47 $ 03 Nung
$03 :
:3 realize
3 70,
70,0 that,9 3
0 9,9
9 in
3 2737 B.C., when dried
03/70/
leaves blew into his cup of hot water, the beverage he discovered would cause
0,;08-03948.:54149,90790-0;07,00/8.4;070/4:/.,:80
sensations
80
8038
38,9
,943
438 around
8 ,7
,74:
4:3/ the0
3/ 9
90 world.
47
47/ During
/ :
:7
73 this8 92
3 9
98 time,
9 water
20 ,
,90
907 was,8
7 always
,8 ,
,, 8 boiled
,8 -4
-4
0/ for
0/ 147
hygienic
03
03. reasons.
. 70,
70,84
8438 The0 5
38 %
%0 pleasant
50,8,3
0,8,39 aroma
9 ,74
,742, and refreshing
2,,3/70170
,3/701708
83 taste9003
39,8
9,890 enchanted
03.,3
.,390/ him ,3/
90/ 2
2 and
soon everyone in the realm was drinking tea.
84430;0743039070,2,8/73390,
Japan was introduced to tea by Yensei, a returning Buddhist priest residing in
,5,3,83974/:.0/9490,-0380,709:733://8957089708/33
China at the time of the discovery. Tea was immediately embraced by Japanese
3,,9909204190/8.4;07%0,,8220/,9002-7,.0/-,5,3080
society
84.
84.09 and/ 708
09 ,3
,3/ resulted
708:9
:90/ in 9
0/ 3
3 the0 .70
90 creation
.70,9
,94
43 of 9
3 41
41 the0 397
90 intricate
397.
.,90 Japanese
,90 ,5,
,5,30
3080 Tea, 0
80 %0
%0, Ceremony,
0702
70243
43
elevating tea to an art form.
00;,9390,94,3,791472
Tea continued to travel throughout the Orient and it was during the time of the
%0,.4393:0/9497,;0974:4:9907039,3/9,8/:73909204190
Europe
:
:745
7450 annex
0 ,3
,330 plorers
30 5
5470 78 tea
47078 90
90, made
, 2,
2,/0 its .:
/0 98
98 cultural
.:9
9:7, broad
:7, -74, / jump.
-74,/ :25
:25 The ,
%0
%0 East89 3/
,89 India
3/, Tea,
, %0
%0,
Company
42
425,3
5,3 brought
-74
-74:
:99 tea
90, into
90,3
394 Holland
944
4, but 98
,3/-:9
3/-:9 its prohibitive
98 574
574-
-9;
9;0 cost 941
0 .48
.489 of
$100 per
41 507 pound
507 54:
54:3/
3/
kept tea as a rich man's beverage until so much was imported that tea prices fell
05990,,8,7.2,38-0;07,0:39842:.,8254790/9,990,57.0810
and was sold in small food shops.
,3/,884/382,144/8458
In3 1650, Peter
! 09 Stuyvesant
09007 $9:;
;08
08,,39 brought
39 -74
74:
: tea, 94
9 90
90, to 9the
94 American
0 207
207.,3 colonists
.,3 .44
.4 43
3898 in New
898 3
3 0
0
Amsterdam, later called
28907/,2,907.,0/
New York. Soon the colonists were drinking more tea than all England.
047$44390.443898070/733247090,9,3,3,3/
In 3
3
3 England,
3,
,3 tea,
3/ 90
90, gardens,
,7
,7/
/038 orate
038 47
473
3,90 outdoor
90 4:9
:9/4
/44 events
47 0;
0;00398 with
98 9 1fancy
9 ,3. food
,3. 144
14 and/ 9tea,
4/ ,3
,3/ 0,
0,
fireworks and gambling, seemed to sprout up overnight as entertainment centers
170478,3/,2-380020/948574:9:54;0739,8039079,32039.039078
of the day and many British enjoyed the festivities offered there.
4190/,,3/2,37980340/901089;908411070/9070
Russia discovered tea when ornate chests of the dried leaves were sent to Czar
#:88,/8.4;070/90,03473,90.08984190/70/0,;08070803994,7
Alexis by the Chinese Embassy in Moscow in 1618.
08-9030802-,88348.43 It became Russian custom
9-0.,20#:88,3.:8942
to 8sip
94
94 5 heavily
5 0
0,;
,;
sweetened
8
800
0090
9030
30/ tea, 17
/ 90
90, from
1742 a
42 , glass
,8 in ,
,888 3
3 a 8;
silver
8 07 holder.
;07 4/0
4/07 Russians
7 #:
#:88
88,
,38 also
38 ,84
,84
enjoyed
03
034
40/ honey
0/ 4
430 or 897
30 47 strawberry
897,- 077 jam
,-077 ,2 stirred
,2 89
8977
770/ into4 90,
0/ 39
394 tea ,8
90, as 907
their
9 ethnic
07 09
093
3. contribution.
. .43
.4397-
97-:94
:943
3
Even today, vodka and tea are the national beverages of Russia.
;0394/,;4/,,3/90,,70903,943,-0;07,0841#:88,
To recover extensive expenses from the French and Indian War, England levied
%470.4;0709038;00503808174290703.,3/3/,3,73,3/0;0/
a huge tax on tea
,:09,4390,
13
Imported to the colonies, 289,03-00;3
254790/9490.44308
25 4790/9490.44308289,03 mistakenly-00;390.443898
believing 90.44389807084
the colonists 0708444
were so 440/43
hooked on
0/43
it 9
9
9 they'd
90 / pay
0/ 5, anything
5, ,3
,399
3 to
3 94
94 keep
00
005 their
5 9
907 supply
07 8:
8:55
55 coming
.4
.4223 in.
3 3
3 One
30 night
30 3
39 the0 2
9 90
9 men03 of
03 41
Boston
489
4 8943 dressed
43 /70
/7088 880/ as 3
0/ ,8 Indians,
3/
/,3,38 reminiscent
8 702
702338
8.03
.039 of 90
9 41
41 the0 7
9 French
703.
03. and/ 3/,
,3/
,3 Indian
3 /,3
3 War,7 894
stole
89 40
0
aboard the ships docked in the Boston harbor and threw the expensive tea cargo
,-4,7/90858/4.0/39048943,7-47,3/9709005038;090,.,74
overboard and into the harbor. England reacted by having a raging fit, closing
4;07-4,7/,3/39490,7-473,3/70,.90/-,;3,7,319.483
Boston's port and sending Royal troops into occupation of Boston. Because of
4894385479,3/803/3#4,9744583944..:5,94341489430.,:8041
this, colonists met to discuss these events and declared a revolution.
98.44389820994/8.:8890800;0398,3//0.,70/,70;4:943
At 43
9
9 one0 point,
430 54
543 39 England
9 3
3 ,3
,3/ even
/ 0;
0;0303 gave
,;
,;0 The0 John
0 %0
% 43
43 Company
425
425,3,3 the0 power
90
9 54
54007 to 34
7 94
94 not 9 43
349 only
43
import tea but to coin
2547990,-:994.43
its 43
98
98 own 243
43 money,
2430 make0 peace,
0 2,
2,0 50,.0/0.,declare70,
50,.0/0.,70 war
,7 and 4907
7 ,3/
,3/ other
49 07 privileges
57;
57;0 08 previously
008 570;
570;4:4:88 only
43
43
held by countries.
0/-.4:39708
In the 1880's,
390 America came to the forefront as the biggest importer of tea due
8207.,.,209490147017439,890-08925479074190,/:0
to faster clipper
941,8907.5507
ships and the ability to pay its debts in gold.
858,3/90,-9945,98/0-9834/
A tea plantation owner introduced iced tea to the St. Louis World's Fair in 1904.
90,5,39,94343073974/:.0/.0/90,9490$94:847/8,73
It was an extremely warm day and his hot tea booth was being passed up by the
9,8,3097020,72/,,3/84990,-449,8-035,880/:5-90
crowds in favor of cold drinks. As desperate measure, since he was out time and
.74/831,;4741.4//7388/08507,9020,8:7083.00,84:9920,3/
money for even coming to the Fair, headed ice to the vats of liquid hot tea and
24301470;03.4239490,70,/0/.09490;,98416:/4990,,3/
in the process made it one of the highlights of the 1904World's
390574.0882,/094304190984190 Fair.
47/8,7
The tea bag came along as a surprise. Samples of tea at the turn of the twentieth
%090,-,.,20,43,8,8:75780$,25084190,,9909:734190903909
century were given34:9382,8-,8,3/3890,/
.039:7070;0 out in small silk -,8,3/3890,/414503390-,
.039:7070;034:9382,8 bags and instead 414503390-,89090,
of opening the bags,89090,
the tea
bag in its entirety,8-03/74550/39449,907
was being dropped
-,398039709,8-03/7455
-,398039709 into hot water -.438:2078":.,90,
by consumers. ":.,90,
0/39449,907-.438:2078 Quickly, a tea
company
.42
.425,3
5,3 sprang
85
857,
7,3 into
3 3
394 action
94 ,.9
,.943 and 5,903
43 ,3/
,3/ patented
5,90390/ the 90,
90/ 90
90 tea bag.
90, -, Thomas
-, %
%42
42,8 J. 59
,8
Lipton
5943 was8
43 ,
,8
responsible for designing a four-sided tea he dubbed the 'flo-thru' tea bag, which
7085438-0147/0833,14:78/0/90,0/:--0/901497:90,-,.
allowed tea to steep more quickly in the cup than the customary two-sided bag.
,40/90,948900524706:.390.:59,390.:8942,7948/0/-,
Today tea is grown on tea estates and70% of the tea we drink is grown in Sri
%4/,90,87434390,089,908,3/419090,0/7387433$7
Lanka, India, Indonesia, Kenya, Argentina and China.
,3,3/,3/4308,03,70393,,3/3,
14
The best climates for growing tea are those that are tropical or semi-tropical and
%0-089.2,90814774390,,7094809,9,709745.,478029745.,,3/
tea, .,
90
90, can3 -0
.,3 be
-0 grown
74
74 on3 84
3 4 soil 9,9
84 that,9 8
9 is 34
8 not 9 1
349 fit9 14
19 for7 74
147 growing
743
3 much
2 :. of ,39
:. 41
41 anything
,39
3 else.
3 080
080
Today there are three basic types of tea: black, oolong and green and from these
%4/,9070,709700-,8.95084190,-,.4443,3/7003,3/17429080
3
three typ
types spring over .:9;,90/;,70908%00,;08,705.0/,9:89
9700950885734;07 ,00Q cultivated varieties. The leaves ar Picked at just
e righ Pmorhent designated by the tea estate manager, then crushed to start the
9079242039/083,90/-9090,089,902,3,07903.7:80/9489,7990
oxidation process.
4/,943574.088
15
GLOBAL TEA INDUSTRY
%&$%#
The0
%
%0 global
4-,
4-, tea, 3
90
90, industry
3/:
/:89
897 is ,
7 8
8 largely
,7
70 domimated
0 /4
/42
23,
3,90
90/ by 3/
/ - India
3/, + 90
, ] the0 80.4
9 second
80.43/ largest
3/ ,7
,708
089
9
producer and the largest consumer of tea. India is succeeded China and followed
574/:.07,3/90,7089.438:2074190,3/,88:..00/0/3,,3/1440/
by
- Kenya
- 03
03, Sri7
, $ Lanka,
,3, Vietnam
,3, '
'093
093,2 and/ 3
,2 ,3
,3/ Indonesia
3/4
/430
308
8, in 90
, 3
3 the0 production
9 574/
574/:.
:.9
943 hierarchy
43 07,
07,7.
7. of
41
countries.
.4:39708
The tea industry is peculiar, the soil characteristics, the climate and the rainfall
%090,3/:897850.:,79084.,7,.90789.890.2,90,3/907,31,
determine
/0
/090
9072
723
30 the0 .,7
0 90
9 character
. ,7,.
,.90 7 4of1 9
907 the0 90
90 tea, ,3/
90, and/ 98
,3 its8 9,89
9 taste.
9, 890 Tea
0 % 0, affects
0, ,1
,110
10.9
.98 the0 9,89
8 90
9 taste
9, 0 buds;
890 -:
-:/8
/8
therefore,
90
90701
701470
470 it 8
9 is /1
8 difficult
/11.
1.:9 to 705
:9 94
94 replace
705,.0 a 5,7
,.0 , particular
5,79.:
9.:,7 variety
,7 ;,70
;, 9 with
709 9
9 a 8:-89
, substitute.
8:-899:
9:90 This8
90 %
%8
explains
05
05,
,38 why .079
38
certain
.079,3 types
,3 9
9508 are 1,;
508 ,70
,70 favored
1,;470 / by
470/ certain
- .07
.079,
9,3 countries:
3 .4:
.4:397
39708
08 for 0,25
147
147 example,
0,250 the
090
90
CIS .42
$
$ (commonwealth
.42243
2430
0,9 of 3/
,9 41 independent
3/050
0503/0
3/039 states
39 89,
89,908 i.e. #:8
908 0
0 Russia)
#:88
8, countries
, .4:
.4:397
39708 favor
08 1,;
1,;47 Indian
47 3/
3/,3
,3
and Sri Lankan teas. UK and Pakistan favor Kenyan teas.
,3/$7,3,390,8&,3/!,89,31,;4703,390,8
India accounts for
3/,,..4:398147 26 per
507 cent 941
507 .03
.039 of world's
41 4
47/
7/8 production.
8574
574/:
/:.94 While $7
.9430
30 Sri
$7 Lanka,
,3
,3, Kenya
, 0
03,
3,
and 3/
,3/
,3/ Indonesia
3/43
4308
08, are 90
, ,70
,70 the 49
90 other
4907 leading
07 0,
0,/ 3 producers;
/3 57
574/:
4/:.07
.078 their7 .42
8 90
907 combined
.42-3
-30/ production
0/ 574/:
574/:.94
.943 is
3 8
lower 9,39,9413/,,92,083/
407 than that of India. What
4079,39,9413/, makes India,,3390708934-0
an interesting
,92,083/,,33907089 object.94189:/89,9
of study is that
34-0.94189:/89,9
its size is no millstone around its neck; its production growth between 1
9880834289430,74:3/9830.98574/:.943749-09003 996 ,3/
and
1998 at 5.63
,9 per cent was way ahead/41903.70,80347/
507.039,8,,0, of the increase0347/574/:.9
507.039,8,,0,/41903.70,8 in world 574/:.94341430
production of one
4341430
per cent only.
507.03943
In
3 2008, world tea production reached over
47/90,574/:.94370,.0/4;07 4.73 million tones. Producing 1.16
24394308!74/:.3
billion
-
-
43 kilos
43 48 (2.56billion
48 --
43 pounds)
43 54
54:3
:3/8 of 90
/8 41
41 tea, 50
90, per7 0
507 year,
0,7
,7 China
3 is 90
3, 8
8 the0 3
9 number
:2
:2-0
-07 one0
7 43
430
source for tea on the planet.
84:7.014790,43905,309
At
9 980million kilos (2.16
24348 billion pounds), India stands at number two. Kenya
-4354:3/83/,89,3/8,93:2-079403,
and Sri Lanka follow.
,3/$7,3,144
When
03
it .4
03 9
9 comes
.420
208 to 0
8 94
94 exports,
054
54798
798 China
3 , 8ships
3,
58 out 9
58 4:
4:9 2972
million
2
43 kilos
43 48 (654.78
48 million
243
pounds) of all types
54:3/841,9508
of tea whereas India, with primarily black tea, moves
4190,070,83/,9572,7-,.90,24;08 203 million kilos (429.9
24348
million pounds).
24354:3/8
16
This ranking is fairly recent. Prior to the 1960s,
%87,3381,770.039!7479490 India was the top producer and
83/,,890945574/:.07,3/
0exporter. For
547907 47 0example,
,250 in3 1955,
India
3 /, 8shipped out
550/ 4:9 165 million
2 kilos
43 48
48
(363.77
million
2
2 43 pounds)
43 54:
54:3/8
3/8 of 07
41 her 949
total, production
949, 57
574/:
4/:.94
.943 of
3 41 301 million
2
4
43 kilos
48 (663.59
3 48
aU OARS) Sao RSFSR
RCH BS BBB Be WARE
24354:3/8%0107.07;,79$7,3,8,90944.03-,.
,3/147914794505479075489431742908974:90 8:93
Sri
$7
$7 Lanka
,3
,3, surpassed
, 8:
8:75
75,88
,880/ India
0/ 3
3/
/, for7
, 14
147 good
44/ with9
44/
9 211 million
2
43 kilos
43 4 8 (465.12
48 million
2
2
4
43
3
pounds).
54:3/8
China
3
3, caught
, .,
.,:
:9 up 3
9 :5
:5 in 1993
3 with
9 201
9 million
2
4
43 kilos
48 (443.13
3 48
million
2
2
43 pounds)
43 54
54:3
:3/8
/8 to
94
94
India's
3/
3/,8 175 (385.81million
,8 2
2
43 pounds).
43 54
54:3
:3/8
/8 Kenya's
0
03
3,8 exports
,8 0
0547
54798 exceeded
98 0
0.0
.00/
0/0/ India’s
0/ 3/
3/,8 that,9
,8 9,9
9
same year with 188
8,200,79 million kilos (414.47million
243482 pounds).47949,574/:.9
24354:3/8
4354:3/8 For total production,
47949,574/:.943
43
India
3/
3/, has8 9,
, ,8
, taken
9,0
03 second
3 80
80.43/ place
.43/ 5
5,.
,.0 to
0 94
94 China
3, since
3, 83.
83.0 2006.
0 (All 1
figures
1:708 come
:708 .42
.4 from
20 17
1742
42
respective countries’ tea boards.)
70850.9;0.4:3970890,-4,7/8
So, while other sources are ever more aggressive in their outputs, India seems to
$40490784:7.08,700;072470,7088;039074:95:983/,8002894
be ,
-0
-0 lagging.
,
3 It is 34
3 98 no 8:7
34 surprise
8:757
5780 that,9
809
9,9 China has 2,
3,,8
3,,8 made
2,/0 fast9 ,
/01,8
1,89 gains
,38 on 90
38 43 the0 7089
439 rest 41
7089 of 90
the
4190
pack, given the increases the country has made in its other industries. But why
5,.;03903.70,80890.4:397,82,/039849073/:89708:9
is this happening in tea, specifically?
898,55033390,850.1.,
What
,9 is8 9
the0 1fundamental
90 :3/,2 , 7reason,
3/,20039, 0,8
,8443 if1 9there
0770 is8 43
0 one,0 1for
430 47 India’s
8 8slip
3/,8 in 9tea
5 3
3 0,
0,
supremacy? In my presentation and during the lively question-and-answer that
8:5702,.325708039,943,3//:7390;06:08943,3/,38079,9
followed, I offered a few ideas that seemed to catch the audience’s attention.
1440/411070/,10/0,89,980020/94.,9.90,:/03.08,9903943
The0 14
%0
% follow
14 4 table0 8
4 9,-
9,-0 shows
84
48 the0 ,2
8 9
90 amount
,24:
4:39 of 90,
39 41 tea production
90, 574/
574/:.
:.9
943 (in3 9430
43 3
tones)
94308 by 0,
8 - leading
0,/
/3
3
countries in recent year
.4:39708370.0390,7
17
INDIA TEA HISTORY:
%$%#
The tea industry in India is about 1720,784/94..:508,325479,395,.0
%090,3/:89733/,8,-4:9 years old. It occupies an important place
and/ plays
,3
,3/ 5
5,8 a ;0
,8 , very
;07 useful
7 :8
:801: part
01: 5,
5,79 in the
79 3
3 90 national
90 3,94
3, 943,
3, economy.
0.4
0.434
342
2 Robert
#4
#4-0
-079 Bruce
79 7:.0 in 1823
7:.0 3
3
discovered
/8
/8.4;
.4;070/ tea plants
070/ 90,
90, 5,
5,398 growing
3987
74
43 wild/ 3:5507
3
/ in upper 7
3:5507 Brahmaputra
7,2
,2,5:
,5:97, Valley.
97, ',
',0
0 In 1838
3
3 the
90
first
178
1 9 Indian
789 3/
3/,
,3 tea, 17
3 90
90, from
1742 Assam
42 88
88,2 was,8
,2 ,8 8sent
039 to &3
039 94
94 United
&39
90/ Kingdom
0/
3
3/
/42 for7 public
42 147
14 5:
5:-
-. sale.
. 8,0
8, 0
Thereafter, it was extended to other parts of the country between 50's
%070,19079,80903/0/9449075,7984190.4:397-09003 and
8,3/ 60's
8
of1 9the
4 0 last
,899 .century.
,8 03
039:
9:7
7 However,
4
40;
0;07
07 owing
4
43
3 to .0
94
94 certain
.0779, specific
9,3 850.
85 1. 8soil
0.1. and/ .2
4 ,3/
,3 climatic
.2,,9.
9.
7requirements
06:702 03998 its98 .:
0203 cultivation
.: ,943 was
9;,9 ,8 .confined
431
3130/ 9to4 4
30/ only
3 .certain
079,3 parts of1 9the
5,798 4 0
country.Tea
.4:3
.4:397% is an3,74-,80/.422
97%0,8, agro-based
0,8,3,74- commodity
,80/.4224/9 and is subjected
4/9 ,3/88:-0 to vagaries8413,9:70
,3/88:-0.90/94;,,70 of nature.
.90/94;,,708413,9:70
Despite
08
085
590 adverse
90 ,/;
,/;078
0780 agro
0 ,
,74 climatic
74 .2
.2,9
,9. condition
. .43
.43/9
/943 experienced
43 050
05070
703.0
3.0/ in 90,
/ 3
3 tea 743
90, growing
743 areas8 3
,70,
,70,8 in
many
2 ,3 years,
,3 0
0,7 8 Indian
,78 3/
/,3 Tea
,3 % 0, Plantation
0, !
!,3
,39,
9,9
943 Industry
43 3
3/:
/:8897
97 is ,-0
8
8 able0 94
,- to 2
94 maintain
,3
,39,
9,3 substantial
3 8:-8
8:-89,
9,39
39,
,
growth
74
749 in 70,
9 3
3 relation
70,9
94 to ;
43 94
94 volume
4
4:2
:20 of Indian
0 41
41 3/
3/,
,3 tea, production
3 90
90, 574/:
74/:.9
.94
43 during
3 /:
/:773 the0 ,89
3 90
9 last89 43
, one0
430
decade.
/0.,/
/0.,/0 Tea, 8
0 %0
%0, is ,3
an 088
,3 essential
08803
039
9, item
, 9
902 of /4
02 41
41 domestic
/420
2089 89. consumption
. .4
.438
38:2
:259
594
43 and/ 8
3 ,3
,3/ is 90
8 the0 2,
9 major
2,47
47
beverage in India. Tea is ,84.438/070/
-0;07,033/,%0,8
-0; 07,033/,%0,8,84 also .438/070/,
considered ,890.0,5089
as890.0,5089-0;07,0,2438
the cheapest -0;07,0,2438990
beverage amongst 990 the
beverages
-0;07,08
-0; available
07,08 ,;, in 3
,;,,-03
,-03 India.
3/, Tea 3
/, %0,
%0, Industry
3/:897 provides
/:897574
574;/0
;/08 gainful:/70
8 ,31
,31: direct.902542
/70.9 employment
02542039
039
to more 9,
942470
942470 than3,
9,3 a 2
, million
2 workers782
43470
4347078 mainly
2 ,3
,3 drawn
/7,
/7,3 from 90
3 1742
1742 the0 -,.
9 backward
-,.,7
,7/ and 84.,
/,3/
,3/ socially
84.,
weaker
0,
0,0
07 section
7 80.
80.94
943 of 9
3 41 the0 84
90 society.
84.09
.09 It 8
9 is ,8
8 also4,
,84 a 8:-89
, substantial
8:-89,39
,39, foreign
,147
14703 exchange
03 0.,
0 earner
.,300,7307
300,7307
and provides
,3/
,3/ 574
574;/
;/08 sizeable
08 8
80,
0,-0 amount
-0 ,2
,24:3
4:39 of 70;
9 41 revenue
70;03: 0 to
03:0 94 the $9,
94 90
90 State90 ,3/
$9,90 and 0
,3/ Central
0397
397, Exchequer.
,
.0
.06:0
6:07
7
The0949
%
%0 total,9:734;0741
turnover0741
949,9:734; of 9
the0 3
90 Indian
3/,
/,3 tea 3
390,
90, industry
3/:8
/:897 is 390
97 8
8 in the ;.3
vicinity
; of #8
.3941
941 Rs.9000 Crs.
78
Presently, Indian tea industry is having (as on 18.12.2009)
!7080393/,390,3/:8978,;3,843
1692
7registered
089070/ Tea
% 0, Manufacturers,
,3:1,.9:7078
2200
7registered
089070/ Tea
% 0, Exporters,
5479078
5848 3
number
:2-07 of1
4 7registered
089070/ 9tea
0, buyers,
-:078
Nine tea Auction centers.
3090,:.943.039078
18
The tea industry in India is about 1720,784/94..:508,325479,395,.0
%090,3/:89733/,8,-4:9 years old. It occupies an important place
and/ plays
,3
,3/ 5
5,
,8 a ;0
8 , very
;07 useful
7 :8
:801: part
01: 5,
5,79 in the
79 3
3 9
90 national
0 3,
3,94
943,
3, economy.
0.
0.43
4342
42 Robert
#4
#4-0
-079 Bruce
79 7
7:.
:.0 in 1823
0 3
discovered
/8
/8.4;
.4;070/ tea plants
070/ 90,
90, 5,
5,398 growing
398 74
743 wild/ 3:5507
3
/ in upper
3:5507 Brahmaputra
7,2
7,2,5:
,5:97, Valley.
97,',
',0 In3 1838
0 the
90
first
178
1 9 Indian.tea
789 3/
3/,
,3
3 90
90, from
, 17
1742 Assam
42 88
88,2 was
,2 ,8 8sent
,8 039 to &39
039 94
94 United
&3 0/Kingdom
90/
3
3/
/42 for7 5public
42 147
14 :-
:-. sale.
. 8,0
8, 0
Thereafter, it was extended to other parts of the country between 50's
%070,19079,80903/0/9449075,7984190.4:397-09003 and
8,3/ 60's
8
of1 90
4 the0 ,
9 last89 .03
,8 century.
.039:7
:7 However,
4
40;
0;07
07 owing
4
43 9to4 .0
3 certain
.079
79,3 8specific
,3 50. 1. 8soil
0.1. ,and
4 3/ climatic
3/ .2
.2,9
,9.
.
requirements its cultivation was confined to only certain parts of the country.
706:702039898.:9;,943,8.43130/9443.079,35,7984190.4:397
Major Tea Growing Regions:
,47%0,743#0438
Tea plantations in India are mainly located in rural hills and backward areas of
%0,5,39,943833/,,702,34.,90/37:7,8,3/-,.,7/,70,841
North-eastern and Southern States. Major tea growing areas of the country are
4790,89073,3/$4:9073$9,908,4790,743,70,84190.4:397,70
concentrated in Assam, West Bengal, Tamil Nadu and Kerala. The other areas
.43.0397,90/388,208903,%,2,/:,3/07,,%04907,70,8
where 90,874394,82,09039,70,73,9,
tea is grown to a small extent 9,70,73,9,,%75:7
07090,874394,82,0903
070 are Karnataka,,%75:7,2,.
Tripura,,2,.,!7,/08
Himachal,!7,/08
Pradesh,
Uttaranchal,
&99,
&9 9,7,
7,3.
3.,
, Arunachal
7
7:3
:3,.,.,
, Pradesh,
!7
!7,/,/08
08
Manipur,
,35
,35: :7
7 $Sikkim,
22 Nagaland,
,,
,,,3
,3/ Meghalaya,
/ 0,
0,,,,
,
Mizoram,
47
47,2,2 Bihar
,,7 and/ 788
7 ,3
,3/ Orissa.
7 , Unlike
88, &3
&3
00 2most
48
489 other
9 490
49 07 tea, producing
7 90,
90 574/
574/:. :.3
3 and 0
,3/
,3/ exporting
054
5479
793
3
countries,
.4:39708
.4:3 9708 India,,8/:,2,3:1,.9:73
3/ has dual manufacturing
3/,,8/:,2,3:1,.9 base. India produces 8-49%7:8
:73-,803/,574/:.0 both CTC (Crush,
-,803/,574/:.08-49%7 :8
Tear, Curl) and Orthodox teas in addition to green tea. The weight age lies with
%0,7:7,3/794/490,83,//94394700390,%009,0089
the former due to domestic consumers preference. Orthodox tea production is
90147207/:094/42089..438:207857010703.0794/490,574/:.9438
balanced basically with the export demand. Production of green tea in India is
-,,3.0/-,8.,99005479/02,3/!74/:.94341700390,33/,8
small.
82,
82 , The0 .42
%
%0 competitors
.425095099
947
478 to 3
8 94
94 India
3/
/, in 90,
, 3
3 tea 0
90, export
054
5479 are $
79 ,70
,70 Sri7
Lanka,
,3
,3, Kenya,
, 0
03,
3, China,
3,
3,
Indonesia and Vietnam.
3/4308,,3/'093,2
19
Global competition
4-,.42509943
The major competitive countries in tea in the world are Sri Lanka, Kenya, China
%02,47.425099;0.4:39708390,39047/,70$7,3,03,3,
and 3/43
,3/
,3/ Indonesia.
3/4308
08, China
,
3, is 9
3, 8 the0 2,
90 major
47 producer
2,47 574
574/:
/:.07 of 7003
.0741
41 green
7 tea
003 90,
90, while0 $7
0 Sri ,
$7 Lanka
,3
3, and
, ,3/
Indonesia are producing mainly orthodox varieties of tea. Kenya is basically a
3/4308,,70574/:.32,34794/4;,709084190,03,8-,8.,,
CTC tea producing country. While India is facing competition from Sri Lanka
%90,574/:.3.4:39703/,81,.3.425099431742$7,3,
and/ Indonesia
,3
,3/ 3/
3/43
4308
08, with9 70
,
9 regard
70,
,7/ to 054
7/ 94
94 export
0 5479 of 47
79 41
41 orthodox
479
94
4/4
/4 teas
90,8
90 and/ 17
,8 ,3/
,3 from
1742 China
42
3
3, with9
,
9
regard to green tea export, it is facing competition from Kenya and from other
70,7/94700390,05479981,.3.42509943174203,,3/17424907
African3.4:397083
17., countries 30547
17.,3.4:39708 in 054793%90,80.,:
exporting CTC teas. Because8041,-803.041,70/42089.
of absence of large domestic
93%90,80.,:8041,-803.041,70/42089.
base and due to comparatively small range of exportable items, Sri Lanka and
-,80,3//:094.425,7,9;082,7,304105479,-09028$7,3,,3/
Kenya have an edge over India to offload their teas in any international markets.
03,,;0,30/04;073/,944114,/90790,83,339073,943,2,7098
This is one of the reasons of higher volume of export by Sri Lanka and Kenya
%88430419070,84384107;4:204105479-$7,3,,3/03,
compared
.425 to India. Another
.425,70/943/,349 important
,70/943/,3490725479 point is that, U.K has substantial
0725479,39543989,9&,88:-89,3 interest 9
,39543989,9&,88:-89,39,390708
9,3907089
in tea cultivation in Kenya. Most of the sterling companies, after Indianisation
390,.:9;,943303,489419089073.425,308,19073/,38,943
due0 94
/:
/:0 to 2
94 implementation
25
502
0203
039,9
9,94
43 of
3 41
41 FERA
# Act 9 89
# .
.9 started
89,79
,790/ tea, .:
0/ 90,
90 cultivation
.:9
9;
;,9
,94
43 in 0
3 3
3 Kenya.
03
3, So,4
, $ it
4 9
makes business sense for U.K. to buy tea from Kenya and Kenya became the
2,08-:8308880380147&94-:90,174203,,3/03,-0.,2090
largest supplier of tea to U.K
,70898:55074190,94&
20
CHARACTERISTICS OF THE INDIA TEA INDUSTRY:
#%#$%$%%&$%#
1) !74/:.9;9,3/6:,9
Productivity and quality: %0,79415:.31309:30/4;0790,89
The art of plucking, fine-tuned over the last 200
years,
0,78 7requires
06:708 9two
4 1fresh
708 leaves
0,;08 ,and
3/ ,a bud
- :/ 9to4
be
-0 plucked
-0 5:.
5:.00/
/ 2 manually.
,3
,3:,:,
Tea, productivity
%0
%0, 57
574/
4/:.:.99;
;9 can3 -0
9 .,
.,3 be 2
-0 measured
0,
0,8:8:70 70/ as per
/ ,8
,8 507
507 :3unit9 41
:39 of ,-
41 labor
,-47
47
(man year) and per unit of land (hectare). Mechanized plucking (when labor is
2,30,7,3/507:3941,3/0.9,700.,30/5:.303,-478
in 8479
short79 8:5
384
3 supply
8:55 5 or 05
47
47 expensive)
0503038;
8;0 enhances
003
03,3.,3.0808 productivity,
574
574/:.
/:.9;
9;9 but
9 -:
-:99 with
9
9 compromise
.42
.425742574280 on
80 43
quality,
6:,9
6:, 9 as .4
,8 coarse
.4,78
,780 leaves
0 0,;
0,;08 also4 09
08 ,8
,84 get9 plucked.
0 5:
5:.0/
.0/ When
03 tea, 8
03 90,
90 is 3
8 in 8479
short
8 supply,
479 8:55
8: 55 some0
842
8420
producers
574
574/:
/:.07
.078 increase
8 3
3.70
.70,8 0 productivity
,80 57
574/
4/:. :.9;
9;9 by
9 - allowing
- ,
,4
43 plucking
3 5:.
5 :. 3 of .4
3 41
41 coarse
.4,78
,780 leaves
0 0,;
0 ,;08 08 with
9
9
fresh ones. When premium for quality rises, producers improve the quality by
17084308035702:21476:,97808574/:.0782574;0906:,9-
compromising
.4257428
.425 on productivity.
7428343574/:.
343574/:.9;9 The productivity
9;9%0
%0574 574/:.9; also depends
/:.9;9,84/0503
9,84/0503/843 on 90,
/84390 the ,04190,
age of tea
04190,
bushes,
-:8
-:8008 genetic
8 0309
0309. material,
. 2 ,9
,907
07,, irrigation,
7
77
7
,9
,9443 fertilizer,
3 10
1079
79
07
07 cultivation
.:9
.: 9;
;,9
,94
43 techniques,
3 90.
90 .3
36:
6:08 08 etc..
09.
09
Replantation (typically
#05,39,94395., 2%41.7455,94705,.
of crop pa) to replace04/-:8088/43094
41.7455,94705,.04/-:8 old bushes is done to 2574;0
improve
088/430942574;0
productivity.
574/:.9;9
2) ,
Labor
,-4-47 intensity:
7 39
39038 9 %
0389 This
8 industry
8 3/:897 97 is ;
8
8 very
07 labor
-477 intensive.
,-4 39038;
38;00 Labor
,-47 cost89 8
47 .4
.48 is
8
generally fixed and therefore lower production would result in higher unit cost
0307,10/,3/90701470407574/:.9434:/708:9307:39.489
4of1 production.
574/:.943 The
% 0 proportion
5745 47943 of1
4 variable
; ,7,-0 0elements
020398
in ,-47
3,-
3 labor cost 9 /0
47.48
.489 depends
/0503/
503/8 on ,-47
8 43 labor
43,- legislation
47 0
08
8,9
,943 and 09
43,3/
,3/ extent
09039 of .,8:
039 41
41 casual,,3/
.,8:, and 902
,3/ temporary
902547547,7
,7
workers employed. If the production suffers on account of bad weather or pests,
4707802540/190574/:.9438:1107843,..4:3941-,/0,9074750898
9the
0 per
507 unit
:39 .cost
489 of1
4 production
574/:.943 goes
408 up
:5_ 8significantly
31.,39
3) Long gestation: %0,-:8082,9:70147.42207.,0549,9433
43089,943 Tea bushes mature for commercial exploitation in 5-7 years
0,78
and/ remain
,3
,3/ 702 ,3 productive
702,3 57
574/
4/:.
:.9;
9;0 for7 ,3
0 14
147 an ,;
average
,;07
07, 0 50 9to4
,0 60 years.
0
0,78
,78 Major
,
,4 7 part
47 5,79 of .,5
5,79 41
41 capital
.,59
9,
,
expenditure is to be incurred in first five years, which then yields return over the
0503/9:70894-03.:770/317891;00,78.9030/8709:734;0790
next 100 years.
3090,78
21
4) 4224/
Commodity
422 4/9 nature:
9 3,9
3,9:7:70 Tea, prices
0 %0
%0, 57
7.0 fluctuate
.088 1
1:.
:.9:9:,9
,90
0 widely
/0
/0 with9 /0
9 demand
/02 2,3/ supply
,3/ 8:55
8: 55
imbalances. The commodity is perishable and demand is relatively inelastic to
2-,,3.08%0.4224/985078,-0,3//02,3/870,9;030,89.94
price. While demand has a secular growth rate, supply can vary depending on
57.00/02,3/,8,80.:,77497,908:55.,3;,7/0503/343
.climatic
2,,9. .conditions
2 43/9438 3 in 9the
3 0 2 major
,47 9tea
0, growing
743 .countries.
4:39708 & Unlike
30
0 4 other
907
commodities, tea price cycles have no linkage with the general economic cycles,
.4224/90890,57.0..08,;0343,09900307,0.4342...08
but with agro-climatic conditions.
-:99,74.2,9..43/9438
5) Inconvenient
3.4
.43;3;03
030 039 but9
39 -:
-:9 healthy
0,
0,99 drink:
/ 73
73 Tea, 8
%0
%0, is ,
8 a ; very
07 inconvenient
07 3.4
3 .43;3;030303
039 drink
9 /73
/7 3 to
94
brew.
-70
-70 The
%0 tendency
0 90
903/
3/03 03. to 14
. 94
94 form
1472 a .7
72 , creamy
.70,
0,2 layer
2 ,
,07 of .,
07 41
41 caffeine
.,11110
030 -tannin
30 9,3
9,3333
3 ,/adds
,//8 to 90
/8 94
94 the0
9
inconvenience.
3.4
3 .43;3;03
030
03.3.0
0 %Tea
0, besides
0, -0
-088/
/08 having
08 ,
,; 3 properties
;3 57
5745
4507 079
908 of 1,
08 41
41 fatigue
1,9
9:
:0 amelioration
0 ,2
,20 04
47,
7,9
943 has
43 ,8
,8
chemicals,
.
.02 02..,
,8 which
8
.. help5 3
0
05 in 2
3 maintaining
,
,39
39,
,333
3 cholesterol
.4
. 408
0890
907474 levels
0;0
0;08 and/ 3
8 ,3/
,3 in preventing
3 570;
570;03 039
93
3
cancer. However, research work on the subject is not conclusive.
.,3.0740;077080,7.4743908:-0.98349.43.:8;0
6) 7
Organized
7,3
,30/ industry:
0/ 3/
3/:89 7 %
:897 Tea
0, industry
3/:89
:897 is ,3
7 8
8 an 47
,3 organized
47 ,3
,3
0/ agro
0/ ,
,7474 industry.
3/:89
:897
7 %This
8
8
implies that labor laws exist and since the dominant mode of tea trade is through
25089,9,-47,8089,3/83.090/423,3924/04190,97,/08974:
auctions, a large number of small producers get fair prices.
,:.9438,,703:2-074182,574/:.078091,757.08
7) 42
Domestic
42089. Competition:
089. 425
42509943 The0 2
09943 %
%0 major
,4
,47 share
7 8
8,7
,70 of 90,
0 41 tea, 2
90 market
,7
,709 is /4
09 8
8 dominated
/42
23,
3,90
90/ by
/ -
unorganized players. There are about 1000 of tea brands in India, of which
:347,30/5,078%070,70,-4:94190,-7,3/833/,41. 90%
of the brands are represented by regional players while the balance of the 10%
4190-7,3/8,707057080390/-7043,5,078090-,,3.04190
is dominated by Tata Tea, Hul, Wag Bakri Chai, Godrej, Sapat International and
8/423,90/-%,9,%0,:,,7,4/70$,5,939073,943,,3/
others.
49078
49 078 With9
9
9 the0 7
90 growing
74
43 shift
38
819 from 448
19 1742
1742 loose0 94-7,3/
4480 to branded
94-7,3/0/90,tea, 7043,
regional
0/90,70 43, players
5,
5,07
078 are
8,70
,70
now expanding their reach and also getting premium with their offerings.
3405,3/390770,.,3/,8409935702:299074110738
Special Features of India Tea Industry:
$50.,0,9:708413/,%0,3/:897
[]
Production
!74/:.943 /dependent
0503/039 4of1 ,agro-climatic
74.2,9. .conditions
43/9438
[]
Same
$,20 plant
$,20 5,39 and 8,2
5,39 ,3/
,3/ same0,7457,
agro-practices
8,20,74 57,.9
.9.08 give0;,
.08 ;
;0 variations
;,7,
7,943 in quality93/1107039
943836:, in different
836:,93/11 07039
regions
70438
[]
Product
!74/:.9 Life
10 is8 1for
47 limited
290/ period
5074/
[]
Labor
,
,-47 intensive
-473
39038
9038;
;0
0
[|
High
Cost
48
489 due094
9/:
/:0 to
94high
input
3
35:
5:9 cost89
9.4
.489
[]
No priority
45
457479 for $.0391.48
7479147 Scientific
147$.039 Cost 9,3,02
1.489,Management
3,02039
039
[|] :
Huge0574547943
proportion
:05745 old 90,4!74
479434/ tea & Low
4/90, Productivity
4!74/:.9;
/:.9;9
9
22
SWOT ANALYSIS OF TEA INDUSTRY OF INDIA:
$%$$%&$%#
Strength:
$97039
(| Demand
02
02,3
,3/ for7 9tea
/ 14
147 0, has
0, ,8 been
,8 -003
03 growing
74
74 3 at 8some
3 ,9
,9 42 2% per
4200 507 annum
07 ,33:
,33:2 and/ 84:
2 ,3/
,3 should
8 4:/
/
accelerate further
,..007,901:7907
[] %0.
Technical
%0.3
3.
., &
, Manpower
,354
,354007 Skill:
7 $
$
Due0 94
:
:0 to ,
94 a :
huge
:0 population
54
545:
5:,
,9 43 base
943 -,80 in India
,80 3
3 3/
3/,
,
Technical &
%0.3.,
Manpower Skill is available in abundant.
,35407$8,;,,-03,-:3/,39
[] 44/#080,7.$:554
Good Research Support79-90,74078,8053/:897741:7907
by tea growers has will help industry grow 1:7907
44/#080,7.$:55479-90,74078,8053/:89774 further.
Weaknesses:
0,308808
|| ,
Labor intensive
,-4739038
-4739038;03/:8industry: The second generation
;03/:897%080.43/030
97%080.43/0307,9 labors ,70
7,943,-478 are 70:.
43,-478,70 reluctant to join
70:.9,399443
9,399443
this industry
983/:897
hence it could pose a problem of skilled labour in the near future.
03.09.4:/5480,574-024180/,-4:739030,71:9:70
[| No
4 Effective
4 110
1 10.9
.9; Cost89 ,
;0 4
489 Management
,3,
3,02
02039 system
039 8
889
8902 adopted
02 ,/
,/45
4590 / by
90/ - companies
- .42
.425,
5,3
308 and/ 4907
08 ,3
,3/ other
4907
regulatory
70:,947
bodies.
-4/08
[] $:5517422470011.0395,078003
Supply from more efficient players like Kenya,,3,$7,3,
China, Sri lanka
$:5517422470011.0395,078003,3,$7,3,
[] 0.
Declining
0.33 Export79413/,
3354 of India
547941 over the
3/,4;079 years.
4;07900,
00,78
78
Opportunities:
55479:3908
[|
Export Potential
5479 ! 49039, if1 India
3/, .can
,3 increase
3.70,80 its98 5
production
74/ :.943 .capacity
,5,.9
[| %
To4 make
2 ,0 9tea
0, more
2 470 ,acceptable
..059,-0 ,and
3/ 1fashionable
,843,-0 like
0 .coffee
41100
[] %4
To .42
come
.4 up with
20 :5
:5
9 new
9 30 flavors/formulation
0 1
1,;
,;47
478
814
1472
72:
:,9
,94
43 of 90
3 41
41 the0 90,
9 tea,, 90,
90 tea, 4
90 houses
4:8
:808 etc. 94
08 09.
09 to
94
popularize
545:
54 5:,7
,70 the .43
090
90 concept
.43.05
.0594of190,3
9419tea in 3/
India.
0,33 /,
,
[| ,
Large
70 untapped
,70 :3
:39,55 rural 2
9,550/7:7,
0/7:7, market
,70
,709 for -7,
9147
147 branded
-7,3/0
3/0/ tea .4
/90,
90, companies
.425
25,30 lile :
,3080 Hul ,3/
80: and %,
,3/ Tata9,
%,9,
Tea
%0,
23
Threats:
%70,98
[] 4
Global competition
4-,.42
-,.425099
509943
43
[| 448938420.4:39708
Low Cost in some countries 03,$7,3,,3/03,
like China, Sri Lanka and Kenya.
448938420.4:3970803,$7,3,,3/03,
[] Import
25 of Tea
2547941% from 4907.4:39
47941%0,1742 other .4:39708
0,17424907 countries.
708
[| 48908.,,94343,..4:39413
Cost escalation on account of increase in the cost of production
48908.,,94343,..4:39413.70,80390.48941574/:.943
.70,80390.48941574/:.943
PRESENT MARKET SCENARIO OF INDIAN TEA INDUSTRY:
!#$%#%$#%&$%#
The0 90
%
%0 tea, 3/:
90, industry
3/:89
897 occupies
7 4..:
4..:5
508 a place
08 , 5,
5,.0 of .4
.0 41
41 considerable
.438
38/
/07
07,-
,-0 importance
0 2
254
5479,
79,3.
3.0 in the
0 3
3 90 Indian
90 3/
3/,3
,3
economy, producing a fourth of the world’s annual tea output among them some
0.4342574/:.3,14:79419047/8,33:,90,4:95:9,2439028420
gardens producing high quality teas - and employing around 1.26
,7/038574/:.36:,990,8,3/02543,74:3/ million people
24350450
at 90,
,9 tea plantations
90, 5,39
5,39,9,9438 and/
438 ,3
,3/ 10 2
million
24 3 persons
43 50784
5078438 derive
38 /07
/07;
;0 their
0 907
9 livelihood
07 ;
;0
044
44/ from2 90,
/ 174
1742 tea. 3
90, In
Northeast
479
4790 ,89 India
0,89 3/
3/, alone,
, ,
,430
430 the0 90,
9
90 tea 3
90, industry
3/:
/:89
897 employs
7 02
025
548 around
48 ,7
,74:
4:3/3/ 900,000persons
5
50784
078438 on
38 43
permanent rolls.
5072,3039748
With domestic demand at an estimated825
9/42089./02,3/,9,30892,90/ million kg (MKg) as of
243,841 2009, India
3/,
is one of the largest consumers of tea globally. However, as domestic demand
84304190,7089.438:20784190,4-,40;07,8/42089./02,3/
accounts
,..4
,..4:39
:398 for 4;0
8 147
147 over86%
4;07 of 9
7 41
41 the0 .4
90 country’s
.4:3
:397
97
8 tea, 4:
8 90
90, output
4:95
95: and/ 8since
:9 ,3/
,3 3.0 tea, 2
3.0 90,
90 imports
254
5479 are0
7988 ,7
,70
permitted only for re-export, India’s share of the global tea trade is on the lower
5072990/4314770054793/,88,7041904-,90,97,/084390407
side.
8/0
8/0 Nevertheless,
0;07
0;079
90
008
088 exports
8 054
05479 have
7988 ,
,; a .7
;0 , critical
.79
9. , role
., 740 to play
740 94
94 5, in 2
5, 3
3 maintaining
,39
,39,
,3
33 the0
3 90
9
demand-supply
/02
/02,3/
,3/8:
8:55 balance
55 -,
-,,3.
,3.0 in 90
0 3
3 the /42
90 domestic
/42089
089. market.
. 2,7
2,70
09 Although
9
94: tea
94: 90, is produced
90, 8 574/:
574/:.0/ in
.0/ 3
14States
$9,9
$9,908 in 3
08 3
3 India,
3/
/, five0 41
, 1;
1;0 of 9
41 them?Assam
902
02
88
88,2 and 0
,2 ,3/
,3/ West89 0
089 Bengal
03
3, in North
, 3
3 4
479
79 India,
3/
3/, and
, ,3/
,3/
Tamil
%,2
%, Nadu,
2 ,
,/: Kerala
/: 0
07,
7,, and/ ,
, ,3
,3/ Karnataka
,73
73,9
,9,
,, in $4
, 3
3 South
$4:9
:9 India
3/
3/, account
, ,.
,..4
.4:39 for 4;
:39 147
147 over
4;07 98% 41
07 of
41
India’s tea production. Within that, North India alone accounts for around75%
3/,890,574/:.943939,94793/,,430,..4:398147,74:3/
of 3/,
41 India’s
3/,8 total, 90,
8 949
949, tea production,
90, 574
574/:.
/:.94
943 of which85-90%
3 41
. is .438
. 8
8 consumed
.438:20
:20/ in 90
/ 3 the /42
390 domestic
/42089.
089.
market. The balance, much of it of high quality, is exported. Tea is among the
2,709%0-,,3.02:.419416:,98054790/%0,8,24390
most labor-intensive of all plantation crops. On an average, around
2489,-4739038;041,5,39,943.74583,3,;07,0,74:3/65%4190
of the
cost of production is incurred on labor.
.48941574/:.94383.:770/43,-47
24
The recent buoyancy in tea prices, which started from
%070.039-:4,3.390,57.08.89,790/1742 2006, has come as a relief
,8.420,8,7001
for bulk
147
147 -: tea players,
-:90,5,0 who have had to .450
90,5,0784,;0,/94 cope
784,;0,/94.450 with9/057088
depressed
9/057 prices8147,2
0880/57.0
0/57.08 for almost a
147,2489,
489,
decade since 1999.
/0.,/083.0 Tea prices,8,190770,.3,50,
%0,57.0 after reaching
%0,57.08,190770,. a peak 3
in 1998,
3,50,3 went into a steady
039394,890,/
decline
/0.
0.30 thereafter,
30 907
9070,
0,19
1907 with
07 9
9 ,;average
,;07
07,
,0 domestic.
0 / 42
4208 089 prices
9.. 57.0
7 dwindling
.088 /
/3
3/ 3 from
/3 1742
742 ,7around
,74:
4:3/
3/
Rs.76.43
#8 per kg in 1998
5073 9to4 ,
94 a 4
low 41
4 of ,7
41 around
,74:
4:3/
3/ #8Rs.
#8 58.05
per
507 kg 3
07 in
3 2005(Refer
#0107
Chart
,79 for 97
,79 147
147 trend
9703/ in 90,
03/3
3 tea prices
90,57
57.08 over07 90
.08 4;
4;07 the 5074/
90 period
5074/1998-2008). Although
9
94:
4: global
4-,
4-, tea
90,
prices
57.081999 onwards, driven primarily by oversupply, the decline in average
43,7/8/7;03572,7-4;078:5590/0.303,;07,0
prices
57.0
57 8 was
.08 ,8 sharper
,8 8
8,75
,7507 and/ 41
07 ,3
,3/ of ,
a 4
longer
43
307 duration
07 /:
/:7,9
7,943 for 3/
43 147
147 Indian
3/,3 teas ;8
,3 90,8
90,8 vis-a-vis
;8;
;8 the0 90,8
8 90
9 teas
90,8
from Kenya and Sri Lanka, India’s two main rivals in the exports market. This
174203,,3/$7,3,3/,8942,37;,83900547982,709%8
was on account of a number of factors: lack of marketing initiative by the Indian
,843,..4:3941,3:2-07411,.9478,.412,709339,9;0-903/,3
players
5,0
5 78 to
,078 94 look 147
9444
44 for 05
147 export
05479 markets
479 2,
2,70
7098 beyond
98-0
-043/ the0CIS1
43/ 90
9 $ countries;
$.4
.4:39
:39708
708 proliferation
574
5741
107,9
07,943 of
43 41
small growers and bought-out leaf factories (which led to a decline quality of
82,74078,3/-4:94:90,11,.94708.0/94,/0.306:,941
tea produced), and failure to check spurious varieties of tea from being traded as
90,574/:.0/,3/1,:7094.0.85:74:8;,709084190,1742-0397,/0/,8
premium
570
5702
2:2 tea .
:2 90, (which
90, affected
. ,110
,110.90/ the 2,
.90/ 90
90 image0 41
2,0 of 3/
Indian
3/,3 teas 3
,3 90,8
90,8 in 90
3 the0 054
9 export79 2,7
05479 market);
2,70
09
9
higher cost of
07.48941
production
574/:
57 4/:.9
.94341 of 90,
434190, tea 3
in 3/,,8.425,
33India (as compared
/,,8.425,70/ with9 9,9
70/
9 that,93
9 in $7
3 Sri ,3
$7 Lanka
,3, and 0
, ,3/
,3/ Kenya)
03, on
3, 43
account
,.
,..4
.4:3:39 of 9
9 41
41 the0
90 higher
0
077 8social
4.
4.,, costs
.48
.4 898 here;
98 0
070
70 and/ 08
,3/
,3 existence
0 890
903.
3.0 of .07
0 41
41 certain
.079, 9,3 non-tariff
3 34
34339,
9,7
711
11
barriers
-,77
-, 77078 like0 708
078
0 residual-pesticide
708//:,
:,5085089.9./0 (intea)
/0 3
390, specifications
90, 850.
850.1
1.,9
.,9438 imposed
438 2
2548
5480/0/ by
- ,a 3:2
number
3:2-07 of
-07 41
importing
254
2 5479
793
3 .4countries.
.4:39:397708
08 All 9
these
908080 factors
0 1,
1,.94
.9478 led/ 94
78 0
0/ to 90
94 the0 488
9 lossof
4 8841 key
41 0 export
0 0
054 5479 markets,
79 2 ,7
,709098
8
which
.
in tum
. 3
3 9:7
9:733 3increased
3.70
.70,8 ,80/
0/ 8:supplies
8:55550
08 in 9
8 3
3 the0 /42
90 domestic
/4208 089. market,
9. 2 ,7
,709
09 thereby
9070
9 070-- bringinga
-73
-733,
3,
downward
/43,7/57088
/43 pressure
,7/57088:704357.08 on prices. %8,5,7990,57.08,84.,2094-0,110.90/-
This apart, tea prices ,84.,2094-0,110.90/-
:704357.08%8,5,7990,57.08 also came to be affected by
the0 6:
90
9 qualityfactor,
6:,
,991,
1,.9 .947
47 which
. came
. .,
.,20 into
20 3 94 play
394 5
5, during
, /:
/:7 73 the0 0,7
3 90
9 early
part
0,7 5,
5,79 of 90
79 41
41 the0 .:
9 current
.:77
7703
0399
decade when the delay of re-plantation activities in the latter half of the 1990s
/0.,/00390/0,41705,39,943,.9;908390,9907,14190 8
began
-0
-0,3 to 90
,3 94
94 tell 43
90 on 6:
43 quality
6:,
,9 and/ 03.
9 ,3
,3/ hence
0 3.0 on prices.
0 43
43 57
57.0
.08 Most89 players
8 4
489 5,
5,078 had/ /0
078 ,
,/ deferred
/01010770
770/ re-
/ 70
70
plantation during the latter half of the 1990s
5,39,943/:7390,9907,14190 to cash in on the buoyancy in tea
894.,834390-:4,3.390,
prices during 1997-98,
57.08/:73 but when the sharp price decline happened subsequently,
-:903908,7557.0/0.30,55030/8:-806:039
their
90
9 07 financial
7 13
13,3,3. , position
., 548
5489 943
43 4got 9 84
49 so 0
84 weakened
0, ,03030/ that,9 90
0/ 9,9
9 they
9 0 were
0
070
70 :3unable
:3,-
,-0 to 2,
0 94
94 make0 90
2,0 the0
9
required
706:
706 :70/ investments
70/ 3;
3;0892
0892039 0398 in 9
8 3
3 their
907 tea 08
07 90,
90, estates.
089,90
9,908 Increasing
8 3.70
3 .70,83,83 domestic
/42
/42089089. consumption,
. .438
.438:25 :25943943
and exports to an extent, behind current buoyancy in
,3/05479894,309039-03/.:77039-:4,3.3
Prices
!7.08
25
INDIA Vs OTHER TOP TEA PRODUCING COUNTRIES:
'8%#%!%!#&&%#$
Major tea exporting countries of the world are Kenya, Sri Lanka, China, India
,4790,054793.4:39708419047/,7003,$7,3,3,3/,
and Indonesia. However, prior to evaluation of export performance of major tea
,3/3/4308,40;075747940;,:,94341054795071472,3.0412,4790,
exporting countries of the world, it is necessary to analyze the production and
054793.4:39708419047/9830.088,794,3,090574/:.943,3/
domestic demand of tea in these countries. On the production front India is the
/42089./02,3/4190,39080.4:39708390574/:.943174393/,890
second major producer of the tea in the world .Other countries include China,
80.43/2,47574/:.07419090,39047/907.4:397083.:/03,
Sri Lanka, Kenya and Indonesia. During 1951-60,
$7,3,03,,3/3/4308,:73 India around
3/,,74:3/ 40507.03941
percent of
world 574/
47/
47/ production,
574/:.943
:.943 declined
/0.
/0.30/ to
30/94
94 26 507.0393
per cent in 2008.The declining trend can be
%0/0.339703/.,3-0
observed
4-
4-8
807
07;0
;0/ in .,
/ 3
3 case
.,80 of $7
80 41
41 Sn
$7 Lanka
,3
,3, as 0
, ,8
,8 well.
0 Only
3 China
3
3
3, and/ 0
, ,3/
,3 Kenya
03
3, are0 ,-0
, ,7
,70 able0 94
,- to
94
increase their share in world production considerably. The share of China and
3.70,809078,70347/574/:.943.438/07,-%08,70413,,3/
Kenya
03, /during
03 :7 3 1951-60
73 was13.59
,8 per507 .cent
039 ,and 2.67
3/ per
50
507 cent 9 respectively,
7 .03
.039 708
70850
50.9
.9;
;0
0
increased to
3.70,80/94 31507.039,3/
per cent and
9 507.0393
per cent in 2008.Inrecent years China emerged as
370.0390,783,02070/,8
major
2 ,4
,47 tea producer
7 90,
90, 574/
574/:.
:.07 in 9
07 3
3 the0 4
90 world.
47
7/ Fig-1 8
/
shows,
84
48 during
8 /:7
/:73
3 2004
and2005,
,3
,3/ China
/ 3
3,
,
became
-0
-0.,2
.,20 number
03:2
3:2-07 one 90,
-07 430
430 tea producer
90, 574
574/: in 9
/:.073
.073 the0 47
90 world/ pushing
47/ 5:8
5:8
3 India
33
3/
/, into43:2
,39
394 number
3:2-07 two
-07 94
position.
548943
548 India,,//4:-90/3,8020703.0,8,945
943 3/ had doubted China’s
3/,,//4:-90/3 emergence as a top 7,3574/:
raking
,8020703.0,8,9457, producer,
3574/:.07 citing
.07.93
.93
limitations
2
29,
9,94
9438 infield
38 31
310
0/ level0 89,
/ 0;
0;0 statistics
89,98
989.
9.8 and/ under
8 ,3
,3/ :3/
:3/07 reporting
07 705
705479
4793 of 90
3 41 the 90,
4190 tea production
90, 574
574/:
/:.9
.943 in
43 3
India. Tea board of India was then engaged in revising the production.
3/,%0,-4,7/413/,,890303,0/370;8390574/:.943
Since 1985,
$3.0 even though China’s area under tea cultivation is lower than earlier
0;0394:3,8,70,:3/0790,.:9;,94384079,30,707
period due to improvement in yield, production increased by
5074//:0942574;0203930/574/:.9433.70,80/- 3.28 per cent per
507.039507
annum during 1984-94,
,33:2/:73 by
- 4.13 per cent per annum during 1995-05.In
507.039507,33:2/:73 India
33/,
production
574/:.9
574/:.943 increased
43 3.70,80/ by
3.70,80/ - 1.83
-
percent per annum and 1.07 per cent per annum
507.039507,33:2,3/507.039507,33:2
respectively during the same period. In Kenya, production increased by 5.53
70850.9;0/:73908,205074/303,574/:.9433.70,80/- per
507
cent 9 per
.03
.039 507 annum
507 ,3
,33:2 and/
3:2 ,3
,3/ 3.12
per
50
507 cent
7 .0 39 per
.039 507 annum
07 ,33:
,3 2 respectively
3:2 70
7085
850.
0.9
9;
;0 during
0 /:
/:7
73 the0 8,20
3 90
9 same
8,20
period.
5074/
26
Production
!74
!74/:.
/:.94
943 in $7
33 Sri ,
3$7 Lanka
,3, and 3/
3, ,3/
,3/ Indonesia
3/430
4308, also4 3.
8, ,8
,84 increased
3.70,
70,80/ during
80/ /:7 this period
/:7398
39850
5074
74/ with
/ 9
9
improvement in supply conditions in Kenya, China and Indonesia, India’s share
2574;0203938:55.43/9438303,3,,3/3/4308,3/,88,70
42 SHES
D ERD OH1 a
089.
. .43
.438:2
8:259
5943
43 88 ., EP BF AR ERTL BD ORBSH OH
347/574/:.943/0.30/0;0394:98949,574/:.9433.70,80/
42089 .,.:
.:,90/
,90/ - /0/:
/0/:.9
.93
3 05
05479
479 174
1742 BPSSetion. In
2 574
574/:
/:.94
.943
3 3
case of India, there
.,80413/,9070
is .439
8
8 continuous
.4 393
3:4
:4:8 increase
:8 3
3.7
.70,
0,80 in 8share
80 3
3 ,
,70 of /4
70 41
41 domestic
/42208
089
9. consumption
. .438
.438:2
:255943 in 574/
943 3
3 production,
574/:.
:.9
943
43 it
9
9
increased from
3.70,80/1742 32.06
per cent during 1951-60
507.039/:73 94 to 66.92 per cent in 1981-90,
507.0393 further increased to78.26
1:79073.70,80/94
per cent in
507.0393
2001-04.
We can observe that, whatever additional production is taking place, it
0.,34-807;09,9,90;07,//943,574/:.94389,35,.09
is almost
8,2489
entirely
03
039
970
70 consumed
.4
.438
38:2
:20/ internally
0/ 39
3907
073,
3,
leaving
0,
0,;
;3 export
3 054
0 79 8surplus
5479 :75: to 702
:75:88 94
94 remain
702,
,3 stagnant
3 89,
89,3,
3,39 and/
39 ,3
,3/
sometimes
842
842092
09208 export
08 0
05479 even3 84
5479 0;0
0;03 shows
848 declining
8 /0.
/0.3 3 trend.
33 9703
9703/ In .43
/ 3
3 contrast,
.4397,8
97,89 Kenya’s
9 0
03
3,8 domestic
,8 /42
/42089
089.
.
consumption share in production is very low and declined over a period of time
.438:259438,703574/:.9438;074,3//0.30/4;07,5074/41920
shows that except for a few years, the increase inproduction of tea in Kenya is
8489,90.059147,100,78903.70,803574/:.9434190,303,8
almost
,
,24
2489 entirely
89 03
039970 used
70 :80/ for7 0
0/ 14
147 export.
054
5479 In3 $
79 Sri7 Lanka,
7 ,3
,3, domestic
, /42
4208
0899. consumption
. .438
.438:2
:255943 in
943 3
3
production
574/:.943 is8 very
;07 low
4 ,and
3 / is8 declining.
/0.33 In3 2001-04,
around
,74:3/ 94 per
507 cent 941
507 .03 of 90,
.03941 tea production
90, 574
574/:
/:.94 in $7,3,8:80/
.9433 Sri Lanka
33$7, is used 147
3,8:80/ for 05
147 export.
05479
479 In recent39
370.0
370.039
years, tea export and production are almost same in Sri Lanka .In china, share of
0,7890,05479,3/574/:.943,70,24898,203$7,3,3.3,8,7041
export in production of tea increased over a period of time. From Fig .1 one can
054793574/:.9434190,3.70,80/4;07,5074/41920742430.,3
observe
4-8
4-807;
07;0 that,9 3
0 9
9,9 in
China,
3 , production,
3, 574
574/:.
/:.943
943 export
0
05479 and .4
5479 ,3/
,3/ consumption
.438:
38:259
25943 shown
43 843
8 increasing
43 3.7
3.70,8
0,83
3
trend.
9703
9703/ In 3/4
/ 3
3 Indonesia,
3/4308
308, 8share
, ,7
,70 of .438
0 41
41 consumption
.438:2
:259
5943 in production
43 3
3 574/
574/:.
:.9
943 increased,
43 3.70
3.70,8
,80/ but
0/ -:
-:9 it 8
9 9
9 1s
lower than India.
4079,33/,
27
Reasons for decline in exports:
#0,8438147/0.303054798
1),41$4;09&3432,397,/35,79307413/,%0,054798,;0.420
Fall of Soviet Union, main trading partner of India. Tea exports have come
down by70 percent
/43- from
507.0391742 44 33
Mn/Kg in 2000 to 12.5
94 Mn/Kg in
33 2003.
2)
Exports
547
54798 to 97,
98 94
94 trading
97,/3
/3 ally 7
,
, Iraq,
7,6 Iran
,6 7
7,3 and 1
,3 ,3/
,3/ Afghanistan
1,,38
389,3 was ,110
9,3 ,8
,8 affected
,110.90
.90/ during
/ /:
/:73 the
73 90
same0 period
8,20
8,2 507
50744/ due0 94
/ /:
/:0 to 90
tension
9038
3843 and/
43 ,3
,3/ war,7 3
in 2
3 middle-east.
2////0
00,8
0,89 Exports
9
547
54798 came
98 .,
.,20 down
20 /4
/433 by
-
roughly70 percent between
74:507.039-09003 2000
,3/and
2003.
3) "
Quality
":,
:,
9 has8 ,
9 ,8
, always
,,,88 been
-0
-003 the0 biggest
03 9
90 -
08
089 consideration
9 .4
.438
38/
/0707,9
,94
43 in 90,
3 3
3 tea, 054
90 exports.
0 5479
798 Other
8 9
90
077
emerging countries 0$7,3,,3/03,,708.473/:09424/073
02073.4:39708 like Sri Lanka and Kenya are scoring high due to modern
methods
2094/841
209 of production
4/841574/: and branding. 070,83/,8
574/:.943,3/-7,3/3
.943,3/-7,3/3 Whereas,
07 India is 43.4393:4:8855,0
on continuous
0,83/,843.4393:4 slippage
:8855,0
in terms of quality and branding thereby giving share of exports.
390728416:,9,3/-7,3/39070-;38,7041054798
4) 43.0734;076:,9,8708:90/3054798412,738;,:0,//0/90,
Concern over quality has resulted in exports of high margins value added tea
(Tea Bags and 7,3/0/%0,.420/431742
%0,,8,3/ Branded Tea) come down from 45 507.03941949,90,0547983
percent of total tea exports in
1999
9to4
33 percent
507
07.0
.03 in
39 3
3 2003
;(value
;,
,:0 terms).
:0 907
90728
28 In ;4
3
3 volume
;4:
:20 terms,
20 9072
90 came
7288 .,
.,20 down
20 /4
/43
3
from86.8
1742 Mn/Kg in 1999
33 to
94 39.833
Mn/Kg in 2003.
Global tea industry has witnessed a paradigm shift with emergence of stronger
4-,90,3/:897,8930880/,5,7,/28199020703.0418974307
countries
.4:
.4:39
39708 like0 $7
708
0 Sri ,
$7 Lanka
,3, and/ 03
3, ,3
,3/ Kenya.
03, These
, %
%080 countries
080 .4:
.4:397
39708 captured
08 .,5
.,59:
9:70/ large0 8,708
70/ ,7
,70 shares
8 in
,708 3
global,90,054798,990.489414/075,07803/,
4- tea exports at the cost of older players7803/,3
4-,90,054798,990.489414/075,0 like India. 31,.99080
In 1,.99080.4:39708
fact, these .4:39708
countries
are0 0,
,7
,70 eating
0,9
93 away
3 ,
,, the0 premium
, 9
90 5702
702:
:2 grade
2 7,
7,/0 tea, 05
/0 90
90, export
0 5479 market
479 2 ,7
,709 and/ ;
09 ,3/
,3 value
,: added
,:0 ,//
,//0/ tea,
0/ 90,
90
export market on platform of superior quality and aggressive branding. Impact
054792,709435,91472418:507476:,9,3/,7088;0-7,3/325,.9
on 3/,
43 India
3 is 0;
/, 8
8 evident
0;/0
/039 from $7
39 1742
1742 Sri
$7 Lanka’s
,3,
,3,8 tea 05
8 90,
90, exports
0547
4798 which
98
. increased
. 3.70,
3.70,80
80/ from2
/ 174
1742 262.9
Mn/Kg
3 in3 1999
9to4
298.8Mn
3 /
Kg in3
2008
whereas
0
070
70,8 India’s
,8 3/
3/,8 reduced
,8 70/
70/:.
:.0/ from
0/ 1742
1742
191.7 Mn/Kg to 196
394 Mn/Kg during the same period. Sri Lanka and Kenya are
3/:73908,205074/$7,3,,3/03,,70
able to increase their productivity at constant pace which helped it divert higher
,-0943.70,80907574/:.9;9,9.4389,395,.0.050/9/;07907
produce
574/:.0 in3 9the
0 0export
0 markets.
5479 2 ,7
709 Higher
0988 07 0exports
5
54 were
4798 achieved
070 ,.
,.
0; by 9these
0;00/ -
- 0
080
80
economies
0.4342 as a 708:94150788903
0.434208,8, result 41507889039011479894,7/
08,8,708:9 of persistent 9011479894,7/86:,9
efforts towards 86:,9-09907203
quality -099072039,3/-7,3/
betterment 9,3/-7,3/
and brand
building.
-:/3
-:/3 This 007.80,.9:,050/0.4342
%8 exercise actually 050/0.43420894,7/8/7;
%8007.80,.9:, helped economies0894,7/8/7;32,73
towards driving high margin
32,73
value-added tea exports.
;,:0,//0/90,054798
28
It is witnessed, Indian tea is increasingly been displaced by tea of other
98930880/3/,390,83.70,83-003/85,.0/-90,414907
Asian
8,3 and/
,3 ,3
,3/ African
17
17.,3 countries.
,3 .4
.4::39
397708 Trend
08 %7
%70 indicates
03/ 3
3/ ,908 9that
/.,90 , although
,99 ,9
,94: land
4: ,3/ under
:3/
3/07
07
cultivation in India has increased at CAGR of] percent in last
.:9;,94333/,,83.70,80/,9#41507.0393,89 3 0,780/,8
years, yield has
actually come down from 1679
,.9:,.420/431742 Kg/Hectare in
0.9,703 206 to 1614Kg/Hectare
94 0.9,703 in 2009.
Sn
$7
$7 Lanka
,3 , witnessed
,3, 930
93088
880/ a .425
0/ , complete
.4250090 reversal
90 70
70;
;07
078,
8, to India
94
94 3/, with
3/, 9 yield
9 0/ increasing
0/ 3.7
3.70,
0,8 3 by
83 -
-
40Kg/Hectare
0
0.9,
.9,70
70 between
-09
-09003 2006
003 ,and 2009
3/ with
no4 increase
9 3 3.70,80 in3 land
,3/ under
:3/07
cultivation.
.:9
.: 9;
;,9
,94
43 Even
3 ;
;03 in
03 3
3 Kenya
, yield
03, 0/ increased
0 3.7
.70, more
0,880/ 2 470 than
470 9,
9 10 5
,3
percent
07
07.0
.039 or
39 47
47 242
Kg/Hectare in the same time period. Although, Indiais regarded as uGoliath of
0.9,703908,209205074/94:3/,870,7/0/,8a4,941
tea, 3/:
90
90, industry
3/:897
897 its position
98
98 548
5489
94
43 is 8
3 8 slipping
85
55
53 to 82
3 94
94 smaller
82,
,07 countries
07 .4:3
.4 :397
9708 like
08 0
Sr
0 $7
$7 Lanka
,3
,3, and/
, ,3
,3/
Kenya on quality and productivity parameters.
03,436:,9,3/574/:.9;95,7,209078
Middle-east countries like Iran, Iraq, Afghanistan and UAE were India’s main
//00,89.4:3970807,37,61,389,3,3/&0703/,82,3
trading
97,/
97,/3
3 ally ,3
,
, and/ .4
,3/ contributed
.439
397
7-:
-:90
90/ 35 percent
/ 507.
507.03
039 (volume-based)
9 ;4
;4:2
:20-
0-,8
,80/
0/ of total
41
41 949,
949, Indian
3/
3/,3 tea,
,3 90,
90
exports. But,
054798:9 9/11 terrorist attacks
90774789,99,
907747 and war in Afghanistan
89,99,.8,3/,731, and/7,60/948,75
.8,3/,731,389,3,3 Iraq led to sharp
389,3,3/7,60/948,75
decline in tea exports to these nations.
/0.30390,0547989490803,9438
29
RECOMMENDATIONS FOR IMPROVEMENT
#%$#!#'%
The01,.
%
%0 fact9
1,.9 which
. emerges
. 0207
020708 from 90
08 1742
1742 the present
90 570
570803
8039 crisis88
9.78
.788 is 9,
8 that93/
9,9 Indian
3/,3 tea has not been
,3 90,,8349
90,,8349 -00
-003
3
globallycompetitive.
4
4-,
-,
.42
.4250
5099
99;0
;0 It ,8
has .43
9,8
9 concentrated
.43.03
.0397,
97,90/ more7043
90/ 24
2470 on -:
43 building
-:/
/3 up 98
3 :5 its ,7
98 large0 089
,70 estates
089,908
,908
what it should do isit should given less attention to processing and improving
,9984://48984:/;03088,990394394574.0883,3/2574;3
the0 6:
90
9 quality
6:,
,9
9 by proper
-
- 57
5745
4507 blendingand
07 -
-03
03/
/3
3,3
,3/ marketing+for
/ 2 ,7
,709
093
3]1
]147 higher
47
07 price
07 57.
57.0 realization
0 70
70,
,,
,9
943 of
43 41
their products.
907574/:.98
Unlike its key competitors, India does not have any powerful brand to support
&30980.4250994783/,/408349,;0,354071:-7,3/948:55479
itspromotion
98
98574
574249
2494
43 drive0 3
3 /7;
/7;0 in 90
the 39
90 international
39073
073,94
,943, market.To
3, 2,7
2,709%
09%4 win3 back
4
3 -,. the .43
-,. 90
90 confidence
.431/
1/03.0 of
03.0 41
lost foreignmarkets,
4891470
489147032,7 Indian
32,70983/ tea producers
0983/,390,
,390,574/ have to identify90300/
574/:.078,;094/0391 the 300/
:.078,;094/039190 need 9470;9,
to revitalize
9470;9,0
0
the image 41
902,0 of 3/
902,041 Indiantea in that international
3/,390,39,939073,9 market.A
,390,39,939073,943,2,70 vigorous .,25,3.
43,2,709;474:8 campaign which
9;474:8.,25,3.
include
3.
3.:/
:/0 Indian
0 3/
3/,3 tea 4
,3 90,
90, logos
4 andmaking
48 ,3
,3/2
/2,
,3 Indian
3 3
3/, 3 brands
/,3 -7,3
-7,3/8 acceptable
/8 ,.
,..05
.059,
9,-
-0 in 948
0 3
3 those
9480 most
0 2 489
489
major markets.
2,472,7098
Further,
:
:79
7907 an 38
07,3
,3 inspection
3850.
50.94
943 agency
3,0
,03. should
3. 84 :/ be
84:/ -0 appointed
-0 ,554
,5543
390/ to 005,
90/ 94
94 keep
0 a 6:,
05, quality
6:,9
9 check
.0
.0. on
.43
43
the tea that is exported,
9090,9,98054 and/902,4797:8984:
9090,9,98054790/,3 the major 97:8984:/-02,/
790/,3/902,47 thrust should/-02,/0942574;06:
be made0942574;06:,9
to improve quality
,9
for the long term sustainability of tea industry of India.
147904390728:89,3,-94190,3/:897413/,
There
% 07
070 is ,an3 urgent
0 8
8 :7
:7 39 need
039 300
00/ for7 70
/ 14
147 reducing
70/:
/:..3
3 the0 unit
9
90 cost89 4
:39 .4
.48 of1 production
574
574/:
/:.9
.943 9through
43 74:
74:
PROPHEEY
08ih
.,3308
.,33 SAI4;3
257 in SARAH
2574;3 317, DENI:70
317,897:.9 Hen 9,
897:.9:70 iG473
SB 2,7
9,473 SAA 093
Ets UCONN
2,7093 ,.9;908NS94 3/;
574/:.9;9,38.,5,.9-:/34182,740788970,2332,7093
,.9;908 MAT fetes
3/;/:,
/:,
country’s
.4:3 demand, 5745
.4:3978/02,3/
978/02,3/ propagating
5745,,9 health benefits 41
,,930,9-030198
30,9-030198 of 90,,3/5742
tea and promotion
4190,,3/ 57424943 of 47,3.
4943 41 organic
4147 ,3.
tea using the tea mark. This is exactly what the domestic tea companies should
90,:839090,2,7%880,.9,990/42089.90,.425,30884:/
do for their long term survival
/41479074390728:7;;,
30
CHAPTER 3
!%#
TOP 2 PLAYERS IN INDIAN TEA INDUSTRY:
%!!#$%&$%#
31
TATA TEA
%%%
%%%
Company Profile
425,3!7410
Tata9, %0
%,
%,9, Tea,
%0, Limited,
2
29
90/
0/ also
,
,84 known
84 3
34
43 as %
3 ,8
,8 Tata-Tetley,
,9,
,9,%0
%09
90
0 is 90
8
8 the0 4
9 world's
47
7/8 second
/8 80.4
80.43/ largest
3/ ,7
,7089
089
manufacturer
2,3:
2,3:1,.9:707 and /89
1,.9:707,3/
,3/ distributor
/897-:9 of 90,%,9,%0,890,7089;079
7-:94741 tea. Tata Tea 890,7089;079.,3907
474190,%,9,%0, is the largest vertically integrated
.,3907,90/
,90/
tea firm in the world, from its plantation activity through to its packaging and
90,17239047/1742985,39,943,.9;9974:94985,.,3,3/
marketing initiatives.
2,709339,9;08
Tata
% ,9, Tea
9, % 0, Limited,
0, 2
290
90/ together
/ 94
94
0907 with
09 9 its8 8:
9 98
9 subsidiaries,
8:-8
-8/
/,
,7
708 0engages
08 3
3,
,08 in processing,
08 3
3 574
574.0
.088
883
3
producing,
574/:
574/:.3
.3 marketing,
2 ,7
,709
093
3 and /8
,3/
,3/ distributing
/897
97-:9
-:93 tea products
3 90, 574/:.98 primarily
574/:.98 572
572,7
,7 in 3/,
3
3 India.
3 /, It ,84
9
9 also
,84
involves
3;4
3;4;
;08 in 9
08 3
3 the0 .:
90 cultivation
.:9
9;
;,9
,94
43 and/ 2
3 ,3
,3/ manufacture
,3
,3:1
:1,.
,.9:
9:70 of -,.
70 41
41 black
- tea ,3
,. 90,
90, and/ 38
,3/ instant
389,3
9,39 tea, 90,
9 90,
90, tea,
90
buying/blending,
-:
-:3
3
-
-03
03/
/3
3 and/ 8,
,3/
,3 sale0 41
8,0 of 90
41 tea, 3
90, in -:
3 bulk
-: or ;
47
47 value
,:
,:0 added
0 ,//
,//0/ form.
0/ 1472
1472 It9 4110
offers
411078 tea,
78 90,
90
primarily under the following brand names:
572,7:3/07901443-7,3/3,208
TATA TEA
%%%
Tata Tea
%,9,%0,
Tetley
%090
Kanan
,3,3
Chakra Gold
,7,4/
Premium
!702:2
Gold
4/
Agni
3
Devan
0;,3
Tata9, %0,
%,
%,9, Tea
%0, Limited
29
290/ owns 8 ,55
0/ 43
438 approximately
,5574
742
2,90 51 90,
,90 tea 089,
90, estates
089,908 in 90
908 3
3 the0 89,9
9 states
89,908 of
08 41 Assam,
88,2
88,2
West Bengal, andKerala in India. It also has operations in Australia, the Middle
08903,,3/07,,33/,9,84,84507,94383:897,,90//0
East,
89 west
,89
, 08
089 Asia,
9 8 , North
8, 47 9 Africa,Poland,
479 17
17.,!
.,!4
4,3/ Russia,
,3/ #:8
#:88,
8, and ,
,3/
,3/ Kazakhstan.
,,8
,89,3
9,3 The0 .42
%
%0 company
.425,3
5,3
was founded in 1964
,814:3/0/3 and is headquartered inKolkata, India.
,3/80,/6:,79070/34,9,3/,
Set up in 1964
$09:53 as a joint venture with UK based James Finlay and Company to
,8,439;039:709&-,80/,2083,,3/425,394
develop
/0
/0;
;0 45 value-added
045 ;,
,:0
:0,
,//
//0/ tea,, 9
0/ 90
90, the0 %
90 Tata
,9
,9, Tea, 7
, %0,
%0 Group
74:
4:5 has
5 ,8 now product
,8 34
34 574/
574/::.9 and/ -7,3
.9 ,3
,3/ brand
-7,3/
/
presence in
570803.0340.4:3970898430413/,817892:93,943,.425,308
countries. It is one ofIndia's first multinational companies.
The
%0
% operations
0 45
4507
07,9
,94
438 of %,
38 41
41 Tata9, %
%,9, Tea
0, and/ 9
0, ,3/
,3 its8 8subsidiaries
98 :-
:-8
8/
/,7
,70 focus
088 14.:
14.:8 on branded
8 43
43 -7,
7,3/
3/0/ product
0/ 574/
574/:.
:.9
9
offerings
411
41107
0738 in 90,
38 3 tea, but
390, -:
-:9 with9,
9
9 a 8
, significant
831
31.,
.,39 presence
395708
570803.0 in plantation
03.0 3
35
5,39
,39,9 activity93
,943,.9;
43,.9;9 in 3/,
India,
33/
32
and $7
,3/
,3/ Sn ,
$7 Lanka.
,3, The0 .43
3, %
%0 consolidated
.4384
84/,90/ worldwide
/,90/ 47
47/ /0 branded
//0 -7,3/
-7,3/0/ tea business
0/ 90,
90, -:8
-:830
3088 of 90
8841
41 the %,9
90 Tata,
%,9,
Tea Group contributes to around
%0,74:5.4397-:90894,74:3/ 86 507.039574191742-7,3/0/90,8,080
per cent profit from branded tea sales while
the remaining 14507.039.4231742-:90,.41100,3/3;08920393.420
90702,33 per cent coming from bulk tea, coffee and investment income.
Tata tea Brand is ranked the second 248997:890/-0;07,0-7,3/3-7,3/06:9
%,9,90,7,3/87,30/9080.43/ most trusted beverage brand in brand 06:9
%,9,90,7,3/87,30/9080.43/248997:890/-0;07,0-7,3/3-7,3/ equity
SWOT Analysis Tata Tea:
$%3,88%,9,%0,
Strengths:
$970398
Market 0,/
,709
,709 Leader:
0,/07 With a value share of
079,;,:08,7041 22.6% in November, Tata Tea is now
34;02-07%,9,%0,834
the0 2
90
9 market
,7
,70
099 leader
0
0,/ 07 in3 9the
,/07 0 #8Rs7,000-crore
#8
.
.7470 branded
7470 -7,3
-7,3/0
/0// 9teas
0, market,
0,88 2 ,7
,7009
9 having
,;
,;3
3
overtaken peer Hindustan
4;079,0350073/:89,3
Unilever (HUL) which has a value share of
&30;07&.,8,;,:08,7041 21.3% (Source: AC Nielsen).
$4:7.00803
Resources
#084:7
#084 :7.08
.08 & ,5
Capabilities:
,5,-,-
908
908 Tata9, %0
%,
%,9, Tea,
%0, Limited
2
290
90/ owns 8 ,5
/ 43
438 approximately
,557574
42
2,9 0 51 9tea
,90 0,
estates in the 89,
089,908390 states
89,908 of Assam,
908 41 8
88,2
8,2 West 90
08
089 Bengal,
03,
3, and 0
,3/
,3/ Kerala
07,7,, in India. %
, 33/,
33/, The0 .74
%0 crop5 ,9
.745 at
each of this plantation imbibes the characteristics of the region where it grows.
0,.41985,39,9432--0890.,7,.90789.8419070430709748
In that respect, 90,82:.
tea is 2:.08
39,970850.990,8
39,970850.9 much080
likewise.0,;
Having plantations
,;35,39
35,39,9438
,94383in ;,70/,74.
varied
3;,7 agro-climatic
0/,74.2,9.
2,9.
zones enables Tata Tea to cultivate distinct tea leaves.
430803,-08%,9,%0,94.:9;,90/893.990,0,;08
BrandName: %,9,90,7,3/87,30/9080.43/248997:890/-0;07,0-7,3/
7,3/,20 Tata tea Brand is ranked the second most trusted beverage brand
in brand
3-7,3/
equity.
06
06:
:9
9 The0 .425
%
%0 company's
.425,3 ,3 8 best-selling
8 -08
-08980
980
3 brand
3 -7
-7,3/ is
,3/ 8
8 Agni3
3 which
. caters
. .,9
.,9078 to 90
078 94
94 the0 2
9 mass
,88
,88
segment and
802039,3/
other brands include Tata Tea Gold, Chakra, Gemini and Kanan Devan.
4907-7,3/83.:/0%,9,%0,4/,7,023,3/,3,30;,3
Experience: %,9,%0,,8-00343041904/089.425,30833/,,3/,890
50703.0 Tata Tea has been one of the oldest companies in India and has the
advantage of skill and experience on their side.
,/;,39,0418,3/050703.0439078/0
Weakness:
0,3088
33
No 574/
4 product
574/:.9 differentiation:
:.9 /11
/1107039
07039,943 One of the major problems Tata Tea faces is the
,9433041902,47574-028%,9,%0,1,.08890
lack of 2:.574/:.9/1107039,94303.04,941.438:20788,2,47,70,
,.41 much product differentiation hence loyalty of consumers is a major area
of concern.
41.43.073
Branding: :094,.41-7,3/3,.9;90/29047,30/5,078,2/4
7,3/3 Due to lack of branding activitied my the organized palyers amdlow
SWC O Ref 95' HEGBOS Wranidstctaining consumers becomes a challenge as they
89.3.48941.438:2078709,33.438:2078-0.4208,.,030,890
89.4;0794.0,507-7,3/8
Distribution Network: %0/897-:9433094741%,9,%0,.425780843
897-:9430947 The distribution network of Tata Tea comprises on 1.25
lakh /89
, distributers
/ 897-
7-:9
:9078 this8 8
078 9
98 is 349
8 not 2:
349 much
2:.. when
0303 you
4
4: compare
: .42
.425, 5,70 to &
70 94
94 HUL
& who4 ,;
4 have0 90
,;0 the0
9
strongest dealer 30947390.4:397
89743089/0,07 network in the country
Opportunities:
55479:3908
New !74/:
0 Product.90;045203
Development:
!74/:.90;0 452039 The
9%0
% Company
0 4
4225,3
5,3 can 390
.,3
.,3 integrate
3 907,9
7,90 into
0 394
3 fruit
94 17
17:9 & 0
:9 herbal
07-,
7-,
teas. This 8020
90,8%8 segment39,834909-0039,550/-,3419090,.42
has not yet been 9,550/-,3419090,.425,3
802039,834909-003 tapped by any of the tea companies yet and
5,30809,3/
0809,3/
this could give Tata 90,90178924;078,/;,39,0190/0./0940390798
98.4:/;0%,9, tea the first mover’s advantage if they decide to enter this
segment.
802039
Rural
#:7,
#: Market:
7, ,
,709 There
709%
% 070700 is8 ,
a ,large
,7
70 untapped
0 : 39,55
,550/ rural
0/ 7:7,
7: 7, market
2 ,7
,709
09 which
. needs
. 3 00
00/8 to -0
/8 94
94 be
-0
exploited. 9
05490/ Although
94:
4: %Tata
,9,
,9,%0 Tea, ,8
%0, has 2,/
,8 made0 98
2,/0 it 8
9 s presence
570
570803
803.0 felt9 3
.0 10
109 in 90
the0 7:7,
39 rural 2,
7:7, markets
2,7098
7098
this 80.9478.,7,.9070/-,,70:347,3
sector is characterized
9880.9478.,7,.907
98 by a large un organized
0/-,,70:347,30/80.947 sector ,3/4.,5,0787:0
and local players787:0
0/80.947,3/4.,5,0 rule
the rusts of the day in these markets.
907:8984190/,390802,7098
Export79 !49039
5479
54 Potential: Tata tea is present in
,%,9,90,857080393
!49039, 40.4:39708,74:3/9047/%070
countries around the world. There
are a lot 2470455479:39089.,30549190.,33.70,80907574/:.943
,70,49 more opportunities it can exploit if they can increase their production
capacity to exploit 9080:39,550/47/2,7098,4;079047/
.,5,.9940549 these untapped world markets all over the world.
Mergers and Acquisitions: %070,7024709,390,.425,30833/,
07078,3/.6:89438 There are more than 1000 tea companies in India.
Tata tea .,33.70,80982,7098,70,3/503097,943-,.6:73908082,
%,9,90, can increase its market share and penetration by acquiring these small
companies and
.425,308,3/
also4 1472
,84
,8 forming
14723 mergers
3 207
207078 with9490
078
9 other7 big
4907 - MNC’s
-
8 like0 9//
8
0 it //
9 did 147
for %0
147 Tetley
%090 Tea,, 4
90 %0
%0, Good
44/
4/
Earth etc
,7909.
Threats:
%70,98
Low Barriers:There
4,77078 are not too many entry barriers put by policy makers this
%070,703499442,30397-,770785:9-54.2,07898
makes the
2,08 Indian
90 3
90 3/,
/,3 Tea, 2,
3 %0
%0, market
2,70709 extremely
9 097
097020
020 fragmented
17,
17,20
20390/ and unorganized.
390/ ,3/
,3/ :34
:347,3
7,30/
0/ There
%
%070
070
34
are many regionalplayers who hold small chunks of markets. By imposing Entry
,702,37043,5,07844/82,.:38412,709825483397
barriers
-,77
-, 77078 the 089
078 90 existingplayers
900 893
35,
5,078078 will
be
-0 in ,
-03 a better
3, -099
-09907 position
07 548
5489
943 to 05
43 94 exploit
054 49 the 089
9 90 existing
900 893
3
situation.
89:,943
Globalization: 3/
4-,,943 India, 8
3/, is 45
8 opening
45033
033 it 8/44
9 s /4478
98 doors78 94
to MNC 8,3/s ,3/
8 and
with99
9 that,9.42
9,9 comes08 90
.4208 the0
9
970,941
thew
ation of the economy. The small and regional players will face intense
4-,,94341900.4342%082,,3/7043,5,0781,.0390380
competitions from big MNC s.
.4250994381742-8
INTERNAL ENVIORNMENT ANALYSIS:
%#'#%$$
1)Resour ces:
#084:7.08
Oe 5190,089,908389,9084188,208903,%,2,/:070,
tea estates in states of Assam, West Bengal, Tamil Nadu, Kerela.
Oe 70,41
Area of 26,500 hectares under tea cultivation.
0.9,708:3/0790,.:9;,943
Oe !74/:.08,-4:9
Produces about 6024341-,.90,,33:,
million kg of black tea annually.
Oe $:-8/,708884.,90/.425,308;0780,8-:83088
Subsidiaries & Associated companies Overseas business
2) ,5,-
Capabilities
,5,-9908
08
Oe 897-:94388902
Distribution system.
Oe {Strong and trusted management.
$9743,3/97:890/2,3,02039
Oe [|Research and development.
#080,7.,3//0;0452039
Oe |Marketing.
,7093
BUSINESS LEVEL STRATEGIES:
&$$$'$%#%$
[| Bought90,11,.94708
4: leaf factories .44507
4:90,11,.94708 & co-operatives
.44507,9;08 to change090897:.9
,9;08 94.,3
94.,3090 the 897:.9:704170030,1
structure of green leaf
:704170030,1
production
574/:.943
(| Identified
/03
/03910/ branded/90,,898
910/-7,3/0 tea as 9897:8
-7,3/0/90,,8 its 97:89,70,
thrust 9,70,
area
[] To exit990-0;0
%40
%4099 the0-0;07,07
beverage retailing
7,0709,
09,3-:8 business
3-:83088 to focus
30889414.
9414.:843 on -7,3/0/57
branded
:843-7,3/ products
0/574/:.9
4/:.98 8
[] Tata
%
%,,9, Coffee
9, 11000 8sold
411 4
4// 4off
11 its98
11 98 8stake
9,0 in3
9, Barista,
,789 , no
789, plans
34 5,
5 of re-entering
,38 41
41 70
700390
03907
73 the0
3 90
9
business
-:83088
[] Introducing
3974
3974/:.
/:.3/7drinks
3/738 like
380% TiON,
0%, all4;073/
,4; over073/,
India,
[| pJaago
a
a,,
,,44 #Ref
0X campaign
0X .,
.,25
25,,33 14 followed
14 4
40/ by 9
0/ -
- the0
90 'Aaj, $
, Se0
Khilana
,3
,3,
, Bandh,
,3/
,3/ Pilana
!,
!,3,
3,
Shuru'campaign to
$:7:.,25,394
target the youth for voting and work against corruption
9,709904:9147;493,3/47,,389.477:5943
[] Focus
4
4.:
.:8
843on brands
43 -7
-7,3
,3/8 like0
/8
0 Chakra
, ,7, Gold,
7, 4
4/ Gemini
/ 02
023 and/ ,
3 ,3
,3/ Kanan
,3,3,3 Devan
3 0;,33
0;,33in 70
regions
704
438
38
where they are
07090,70
35
Strong.
89743
MARKETING STRATEGY:
#%$%#%
In spite of a global presence, the brands are distributed differently depending on
3859041,4-,570803.090-7,3/8,70/897-:90//1107039/0503/343
the location. As Tata tea is far better known in India and a powerful brand there,
904.,9438%,9,90,81,7-0990734333/,,3/,54071:-7,3/9070
it 8
9
9 is 5
8 pushed
:8
:80/ on3 9
0/ 4 this8 2
9 market
,7
,7
09 and/ .4:3
09 ,3
,3/ countries
.4 :397
970
08 with
8 9 a large
9 , ,70 Indian
70 3/
3 ,3 population.
/,3 545:
5:,
,9
943
43
Therefore Tetley is the company's global face and the largest markets focus on
%0701470%090890.425,384-,1,.0,3/90,70892,709814.:843
the Tetley brand. Where both brands co-exist in one market, Tetley is positioned
90%090-7,3/070-49-7,3/8.408934302,709%09085489430/
as the premium brand
,8905702:2-7,3/
PROMOTIONAL STRATEGY:
!#%$%#%
The
% new
0 30 .campaign
0 ,2
,255,3 *’
, will
migrate
2
7,
7,90 Tata
90 % ,9
,9, Tea
, % 0, from
0, 1742 being
1742 -03 a 5
03 , physically
8
8.,
.,
and/
,3/
,3
0emotionally
24943, 7revitalizing
3 9tea
0;9, 0, 0experience
0703.0 9to4 4
507 one
30 9that will
,9 .challenge
030 9the
,0 0
consumer’s intellect to *awaken' to what is around them. It will motivate people
.438:20783900.994,,0394,98,74:3/9029249;,9050450
to 3
94 internalize
3907
9073,
3,0 the 90,
0 90
90 tea 05
90, experience
05070
0703.0 and/ 09
3.0 ,3
,3/ externalize
09073
073,
,0 their
0 907
9 social
07 84.,
84 awakening.
., ,,
,,03
033
3 It 8
9
9 is
probably
574-,- 9the
0 1first
789 9time
20 9that
,9 ,any
3 brand
-7,3/ is8 9taking on3 9the
,3 4 mantle
0 2 ,390 4of1
social
84.
84 ., responsibility
, 7085
708543
438
8-
-
9 in 8:
9 3
3 such
8:. a 2,
. , manner.
2,33
3307
07 The
%0 campaign
0 .,2
.,25,
5,
3 will ,84
3
also
,84 provide
574;
74;/0 a
/0 ,
poignant
54
54 3,3 9 platform
3,39 5,
5,914
91472 for .43
72 147
147 connection
.4330.
30.94
943 with 90
3 9
9 the youth.’
90 4
4:9
:9 The0 .,2
%
%0 campaign
.,25,
5,3 in keeping
3 3
3 005
0053
3
with 9
9
9 the0 2,
90 magnitude
2,3
39
9:/
:/0 of 9
0 41
41 the0 89
90 strategy
897,
7,90
90 also4 plans
,8
,84 5,
5,38 to /0
38 94
94 deploy
/05
54 a 2
4 , mega
0
0, approach
, ,5
,5574
574,. to
,. 94
connect
.43
.4330.
30.9 with990
9 the .438
990 consumer
.438:20
:207 at ,
7,9 all possible
,9, 5488
5488-
-0 touch
:. points.
0 94:.
94 54
54398
398 Television
%0
%00;
0;843 will
843
be
-0 the0
-09
90
lynchpin
3.
3.53 of 9
53 41 the0 .,2
90 campaign.
.,25,
5,3 There
3 %
%070 will -0
070
be 430
one 2,
430 main,
2,3 commercial
3 .42
.42207207.,
., and 8
,3/
,3/ six, 84
8 short79
8479
durat
/:7,9
/:7 on .42
,943
43 commercials.
.42207207., 8Fach
.,8 ,
,. of 90
.41 the .42
4190 commercials.
.42207.207.,
,8 will 94:
8
touch
. upon
94:. :54
:543 one0 relevant
3 43
430 700
700;, ;,39
39
social
84
84.,
., issue.
8
88: 0 As
8:0 8 part
8 5,7 of 9
5,7941
941 the0.,2
90 campaign
.,25,
5,3 Tata,%0,-7,3/
3%,9 Tea brand ,8
%,9,%0,-7,3/ has ,84
,8 also 90
,84 tied/:59
up 990
90/:5 with90
the
Jaago India foundation. The foundation and Tata Tea have launched a website
,,43/,14:3/,943%014:3/,943,3/%,9,%0,,;0,:3.0/,0-890
that each month will cover a socially relevant issue. The site will provide all
9,90,.2439.4;07,84.,700;,3988:0%0890574;/0,
the0 70
90
9 required
706:
6:7
70/ information
0/ 31
31472
472,9
,943 on 9
43 43
43 the0 8
90 issue,
88:
8:0 will ,4
0
allow
,4 consumers
.4
.438
38:2
:2078 to 3907
078 94
94 interact
3907,.9 and/
,.9 ,3
,3/
provide solutions. To generate interest and create empathy the site will feature
574;/084:9438%40307,903907089,3/.70,90025,99089010,9:70
four 8479124390945
14:7 short film on the 945.41
14:78479124390 topic.41902439
of 9024399079,3900;84
the month. 9079,3900;843,3/900-890
Other than television3,3/900-890
and the website
9the
0 .campaign
,25,3 will
,also
84 use
:80 7radio,
,/4
press,
0888 8shop
5708 45 level
45 0;0 visibility
0;0 ;
;8
8-9 ,and
9 3/ 9the
0 new
0 30 outdoor
0 4:
4:9
9/447 medium
47 2 0/:2 of 2
:2 41
41 malls
, and/
,8 ,3
,3/
36
multiplexes
2 :95008 9to4 /
drive home
7;0 420 9the message
0 2 088,0 4of1 Jaago Re.0
,,4 # Many
,3 4of1 9the
0
communication
.42
.422:
2:3.
3.,94
,943 tools
3 94 being planned
9448-035,33
48-035,330/ at 902,8
0/,9 the malls ,3/
,9902,8 and 2:
,3/ multiplexes
2:95
950
008 will-0:80/
08
be used
-0:80/
for the first time in the country.
147901789920390.4:397
HINDUSTAN UNILEVER LIMITED:
&$%&'#%
Company Profile:
425,3!7410
Unilever
&3
&30
0;0
;07 owns
7 4
438 two4 41
38 9
94 of 9
the0 24
90 most89
2489 widely
/
/0 recognized
0 70.
70.4
43
30/ product
0/ 574/
574/:.
:.9 lines
9 3
308 Lipton
08 59
5943 and/
43 ,3
,3/
Brooke
7
744
440 Bond.
0 4
43/
3/ The0 2,
%
%0 major
2,4
47 competition
7 .42
.4250
5099
994
43 facing
3 1,
1,.3
.3 Lever
0;
0;07 at present
07 ,9 57080
5708039 is 17
39 8
8 from
1742 Wagh
42 ,
,
Bakri Chai Tea, who is truly a market challenger.
,7,%0,4897:,2,709.,0307
Lipton
594
5943 comprises
3.42
.4257
57808 of 0
808 41 Yellow
04 Label
4 , -0 which
,-0
. is designed
.8/08
8/0830/ for upper
30/ 147
147 :55
:5507 middle,
07 2
2//
//0 upper
0:55
:5507
07
lower and upper middle class, which is a market leader in the industry, 1t comes
407,3/:55072//0.,88.8,2,7090,/073903/:8979.4208
in all the packages including hard packs, jars, and teabags. Lipton yellow label
3,905,.,083.:/3,7/5,.8,78,3/90,-,8594304,-0
although the direct competitor of Brooke Bond Supreme comes in the family of
,94:90/70.9.4250994741744043/$:57020.42083901,241
Unilever
&3
&3 0;
0;07 so 9
07 84
84 it 8
9 is prone
8 57
5743
430 to 9
0 94
94 its8 .42
98 competing
.4250
509
93 attacks.
3 ,99,
,99,.
.8 Lipton
8 594
5943 follows
3 14
144
48 a 2
8 , massive
,88
,88;
;0
promotion scheme to hold its share. Rich bru is designed for middle and lower
574249438.020944/988,70#.-7:8/0830/1472//0,3/407
upperclasses, and Pearl dust is designed for rural areas, mostly districts of Sindh
:5507.,8808,3/!0,7/:898/0830/1477:7,,70,82489/897.9841$3/
where consumption of dust is extensive.
070.438:2594341/:89809038;0
Brooke Bond comprises of:
744043/.425780841
Brooke Bond
744043/
PUP Mel
$:57020
%,,0
3 #4808
Roses
Red Label
#0/,-0
Al Karak Tea
,7,%0,
37
SWOT Analysis for (HUL):
$%3,88147&
Strength:
$97039
Bra 3/
7,
7, ndNa
3/, me:
, 20 According
..4
..47/
7/3 to 7
3 94
94 Brand
7,3
,3/ Equity,
/ 6
6:
:9
9 HUL ,
&
& has8 90
,8 the0 ,7
9 largest
,708
089 number
9 3:2
3:2-0
-07 of
7 41
-7,3/8390489
Prada
%7:890
%7: /BHA
890/ 7,
7,3/8 YE4S
3/8 {st
89 HUL ,8
89&
& has ,
,8 a ;0789743
very
;0 strong7
789743 Brand
7,3
,3/ name03
/3,2
3,20 in 90
the0 3/,
39 Indian
3/,3 market.
3 2 ,7
,709
09
Its brands are strength for the company.
98-7,3/8,7089703914790.425,3
Strong Distribution Network: 3/:89,3&30;078/897-:943.4;0784;07
$9743897-:9430947 Hindustan Unilever's distribution covers over 1
million retails outlets across India directly and its products are available in over
243709,84:9098,.74883/,/70.9,3/98574/:.98,70,;,,-034;07
6.32434:909833/,030,7
million outlets in India, 1.e., nearly 80% of the retail outlets in India. It has
4190709,4:909833/,9,8
39 1factories
,.
,.94
94770
08 in 9
8 3
3 the0 .country.
90 4:3
:397
97 Two4 4
%
%4 out of 9three
:9 41
41 700 Indians
700 3/
3/,
,3 use0 the
38 :80
:8 company’s
90 .42
.4 25,3,3
88
products
574/:.98
574 and &574/:.98,;090,7089.438
/:.98,3/ HUL products
,3/&574/ have the largest consumer reach being available
:.98,;090,7089.438:20770,.-03,;,,
:20770,.-03,;,,-03 in
-03
over80
4;07 per cent of consumer homes across India.
507.03941.438:2074208,.74883/,
Unique sizes ,;
&36:0808 have0-0033974/:.0/147;,74:88020
been introduced/147;,74:880203983.:/
,;0-0033974/:.0 for various segments including teabags, 897
3983.:/390,-,8 stir
390,-,8897
ready.
70,/
Product
!74/:
!74 /:.9 Range:
.9 #,3
#,30 0 Wider
/07 product
/07 57
574/
4/:. 9 7range
:.9 ,3
,30 with
9 technological
9 90.
90.34344
4
.,
., superiority,
8:50
8: 507747
479
9 e.g.
0
0
Brooke Bond's 4990,.,3
744043/8 hot tea can
Weakness:
0,3088
It9 8
9 is ,
8 a 5 product
:.99 being
74/:. -0 3 introduced
03 397
974/
4/: 0/ in3 ,3
:.0/ an ,already
,3 70,/
,/ existing
0
0 93 9tea
893 0, market
0, 2 ,7
,7 with
09
9
9
established brands.
089,-80/-7,3/8
No4 .425
4 competitive
.42509099
9;
;0 advantage
0 ,/;
,/ ;,3
,39,9,0 can,3 be
0 .,
.,3 -0 brought
-0 -7
-74:
4:9 in 98
9 3
3 this8 3/
9 industry.
3/:897
:897 Only 2
3
3 massive
,88
,88;0
;0
advertising and promotional
,/;07983,3/ activities may entice consumer for trial.
57424943,,.9;9082,039.0.438:20714797,
Brand :9
7,3/
7,3/ Dilution:
:943 Having
43,
,; ;3
3 too4 2
94
944 many
,3 brand
,3 -7
-7,3/ extensions
,3/ 0
090
9038
3843
438 can /:
8 .,3
.,3 dilute
/:90 and .4
90 ,3/
,3/ confuse
.431
31:80
:80
consumer perception
.438:207 507.
507.05059
943 and/
43 ,3
,3/ give
; fresh
;0 170
1708 and 30
8 ,3/
,3/ new .425
30 competitors
.4 2509 099478 to
9478 94 seize
94 80
800 market
0 2,
2,7709
09
share.
8,70
Opportunities:
55479:3908
Alliance
,3
.0 with
,3.0
9 Pepsi 94
9 !058
!058 to ,..
access
,..088 massive
088 2,
2,88;
88;0 distribution
0 /8
/897
97-:
-:94
943 network.
3 309
30947 Presence
47 !708
!70803.03.0 of big,
0 41 -
-
well known partners drives demand further.
03435,793078/7;08/02,3/1:7907
Declining markets for other beverages such as soft drinks
0.332,70981474907-0;07,088:.,88419/738
38
Rural
#:7,
#: Market:
7, ,
,709 There
709%
% 07 0 is8 ,
070 a ,
large
,7
70 untapped
0 :39,55
,550/ rural
0/ 7:7,
7: 7, market
2 ,7
,709
09 which
. needs
. 3 00
00/8 to -0
/8 94
94 be
-0
exploited. 9
05490/ Although
94:
4: Tata
% ,9,
,9,%0Tea, ,8
%0, has 2,/
,8 made0 98
2,/0 it 8
9 s presence
570
570803
803.0 felt9 3
.0 10
109 in 90
the0 7:7,
39 rural 2,
7:7, markets
2,7098
7098
this sectors is characterized by a large un organized sector and local players rule
9880.94788.,7,.9070/-,,70:347,30/80.947,3/4.,5,0787:0
the rusts of the day in these markets. 70,907,,703088410,9-0301984190,
907:8984190/,390802,7098 Greater awareness of health benefits of tea.
Threats:
%70,98
A rigorous threat is the increasing number of branded and unbranded tea in the
7474:8970,98903.70,833:2-0741-7,3/0/,3/:3-7,3/0/90,390
market09 9
2,7
2,709 with ,25
9 ample0 price
,250 57
57.0 difference.
.0 /1
/1107
10703.
03.0 For7 9
0 4
47 that,
9,9 established
,9 089,-
089,-8
80/ companies
0/ .42
.425,3
5,308 need/ 94
08 300
300/ to
increase their advertising and promotional budget. There is a need to get a better
3.70,80907,/;07983,3/57424943,-:/09%0708,300/9409,-09907
shelf space and more retailer patronization for the company's brand.
80185,.0,3/2470709,075,9743,94314790.425,38-7,3/
Unilever presently pays80%
&30;0757080395,8 as 9,08432547
,8 taxes
,89, on imported
0843254790/ tea. %8
90/ 90, This 78
90,%8 rise032
in 25479
7803 import duty
5479/:9
/:9
on tea by government is intended to discourage it's consumption, which possess
4390,-4;073203983903/0/94/8.4:7,098.438:25943.5488088
to be a thréat as it has resulted in higher prices for the consumers.
94-0,970,9,89,8708:90/30757.0814790.438:2078
Low Barriers: %070,703499442,30397-,770785:9254.2,07898
4,77078 There are not too many entry barriers put my policy makers this
makes 903/,3%0,2,70909702017,20390/,3/:347,30/%070,70
2,08 the Indian Tea market extremely fragmented and unorganized. There are
many regional,5
2,37043
2, 37043, players
5,07 8 who
,078
4 hold 82
44/
4/ small
82, chunks
, .:
.:3
38 of 2
8 41
41 markets.
,7
,7098
098 By imposing
2548
25483 Entry
3 3
397
97
barriers
-,77
-, 77078 the0 0
078 9
90 existing
089 players
8935, 078 will
35,078
be in ,-099
-03
-03 a better
, position
-099075489
07548943 to 054
43 94
940exploit the 08
54990
990 existing
0893
93
situation. !70803.04149072,475,0788:.,84.,4,,3/08900,/3
89:,943 Presence of other major players such as Coca-Cola and Nestle leading
to tough .42509943
9494: competition
PRESENT STRATEGY:
!#$%$%#%
Ownership:
30785
The
% owner
0 4
430
307 of1 9
7 4 the0 premium
90 570
702
2:
:2 Brooke
2 74
744 Bond
400 43/ and/
3/ ,3
,3/ Lipton
5943 9tea
5943 0, brands
0, -7,3
-7,3/8 in 3/
/8 3
3 India,
3/,
,
Hindustan
3/
3/:8
:89,
9,3 Unilever
3 & 3
30;
0;07 Ltd(HUL),
07 9
9/
/&
& has8 9,
,8
, taken
9,03 a /0.
03 , decisive
/0 .8;0 8step
8; 905 towards
905 94,
94 7/8 regaining
,7/8 70
70,
,3
33
3
absolute
,-8
,-84:
4:90 market
90 2 ,7
,7
09 leadership
09 0
0,
,/07
07885 1from
5 74
742 Tata
2 % ,9, Tea
9, % 0, Ltd
0, 9/ by
9/ entering
- 03
039907
073 9the
3 0 8so-called
4.
.,
,0
0/
/
economy segment of the market as well.
0.434280203941902,709,80
Value Leadership:
',:00,/0785
39
HUL ,7
&
& already
,70,/
0,/ leads
0,/8 the
0,/8 9
90 domestic
0 /4
/420
2089
89. tea, 2
. 90
90, market
,7
,709 in 907
09 3
3 terms
90728 of ;
28 41
41 value
,:0 and/ has
,:0 ,3
,3/ ,88 been
, -0
-003
03
narrowing
3,77
3,774
43 the0
3 90
9 gap
,5 in ;
,5 3
3 volume
4:
4:2 sales,
20 8,
8,08
08 where
07
070 Tata9, %0
0 %,
%,9, Tea's
%0, economy
,88 0.
0.4342 brand
4342 -7,
-7,3/ Agni,
3/ 3
3
priced at around Rs150
57.0/,9,74:3/#8 per kg, gives it the edge.
507;089900/0
New Variants:
0',7,398
HUL
& launched
,:3.0/ its98
Brooke Bond
7440 Sehatmand
43/ $0,92,3/ 9tea
0, in3
Madhya Pradesh,
,/, ! 7,/08
Chhattisgarh
,998
,998,7 and ,7
,7 ,3/ Bihar,7 3
,3/ in ,90
late ,3:,7
January,
,90,3: ,7 using
:8
:83 non-governmental
3 343
3434;0
4;073203
732039, organizations
9,47,3
47,3,94
,9438
38
among other channels in a low-profile promotional campaign.
,2434907.,33083,45741057424943,.,25,3
The new tea, priced at Rs.170-1 805073.:
%03090,57.0/,9#8 per kg, includes
5073.:/0814folic.,./.,.:2,3/4907
acid, calcium ,3/4907
/0814.,./.,.:2 and other
vitamins as part
;9,238,85,79
of its ingredients.
4198370/0398
HUL 050
&
& expects
050.9
.98 Brooke
8 74
744
40 Bond
0 43
43/ Sehatmand
/ $0
$0,
,92
92,3
,3/ to .7
/ 94
94 create
.70,
0,90 a 3
90 , new
0 8segment
0 02
02039 in 90
039 3
3 the850
90
million tones (mt) a
2439430829,
year tea industry. Of this, packaged tea accounts for less than
0,790,3/:8971985,.,0/90,,..4:3981470889,3 350mt
29
40
RECOMMENDATIONS
# %$ % TO % TOP
! 2 ! PLAYERS
#$ % TO INCREASE
#$
MARKET SHARE:
#%$#
Increase number of service outlets 370.039920
3.70,803:2-0741807;.04:9098 : In recent times89070,;0-0033:2074
there have -0033:2074:8
370.03992089070,;0 been numerous :8
coffee 84
.41100 shops
8458 springing
58857
85733 up
33 in %
:53 Tier
%07 A .908
07 cities
.9 like0 :2
08
0 Mumbai,
:2-,
-, Delhi,
0
0
Bangalore
,
,3,
3,47
470 etc
0 09.
Tea house shpul be setup in a similar fashion and premium quality tea’s should
%0,4:8085:-0809:53,82,71,843,3/5702:26:,990,884:/
-0807;0/,990804:9098
Strategic
$97,90.
$97,9 alliance:
0. ,,3
,,3.0 Tie0 up
.0%
%0 :5 with
:5 9 their
9 9
9007 own3 7,
7 4
43 range
7,3
30 of 1;
0 41
41 five0 89,7
1;0 star
89 hotels
,7 4
490 908 to 8:55
8 94
94 supply
8: 55
premium
5702:2 6:, quality
6:,9
9 tea ,3
90,
90, and/ .41
,3/ coffee
.41100
100 ,8as ,8
,8 also4 9
,84 with4
9 lower0703/
407 end 97
03/ three
9700 star749
00 89,
89,7 hotel
490
03n ,84
3 also
,84
local eateries (Udipi joints etc). Tie-up with airlines, rajdhani, shatabdi, caterers
4.,0,90708&/5439809.%0:59,73087,/,38,9,-/.,907078
etc to promote their tea coffee also mineral water brands
09.94574249090790,.41100,842307,,907-7,3/8
Own Depots: %489,7943/0549841%,9,%0,,3/&90,849,990.,380
305498 To start own depots of Tata Tea and HUL tea so that they can sell
loose
448
4 480 tea, 9:8
0 90
90, thus
9 reducing
:8 70
70//:.
:.33 cost89 41
.489
.4 of packing
41 5,
5,..33
which
. . will ,8
also
, reduce
84 70
70/:
/:.0 the0 '
.0 90
9 Vat,9 &
,9
additional charges. Thus 2,880817424073.42074:54:/-00110.9;0
,//943,.,708%:8 masses from lower income group would be effectively
targeted.
9,7090/
Penetration: 0
!03097,943 Deeper
005 07 penetration
0507 50
5030
3097
97,9
,94343 3in 7:
3 rural
7:7, markets
7, 2 ,7 098 by
,7098 - using
- :83
:83 self1 05
801
80 help5 42
0 women
4203 03
groups for /44794/447803
74:58147 door to door selling.
Profit9 2,
!7419
!741 margins
2,73
738 for7 709,
8 14
147 retailers:
709,07
07883Increase
3.70 ,80 profit
.70,80 574
57419 margins
19 2 ,7
,738 for 709
38 147
147 retailers
709,
,078 to ,.
078 94 achieve
,.0; 0;0
0
higher07 8,08
07
sales ;4
volume
;4:2
:20 as 90
0 ,8
,89they are 90
0,70
,70 the 2,
90 main331
2,3 influencing
31:0
:03.
3.3 factors
3 1,.9
1,.9478 in 407
478 3 lower07 3.42
34 income
3 .420 0
group people.
74:550450
Promotional
!7424943,
!742 4943, activities:
,.9 ;908 4
,.9;908 More70 3:2
470 number
3:2-0 -07 of ,/
7 41 ads8
,/8 which
..
,7are0 06
,70 equally
06:,:, effective
011
0110.0.9;
9;0 as
0 ,8
middle class people
2//0.,88 from towns get influenced by ads to a large extent g) Jago
50450174294380931:03.0/-,/894,,7009039,4
Re campaign.
#0.,25,3
4]
Product.9 33
!74/:
!74/:.9 Innovation:
334;,94
4;,943 Enter
3 3
3907 new 2,
907 30
30 market
2,70
709 segment
9 80
8020
2039 with9574/:.9
39 product.933
9574/: innovation
334;
4;,94
,943 like0
3
0
tea 1,;470/.0.70,2890,3090,.03:2809.
90, flavored ice-creams, tea wine, tea chewing gums etc
Flavors: ,:3.3411,;470/90,8-,2-44.:583.3,-739943/,944
,;478 Launching of flavored teas bamboo cups in china bring it to India too.
Launching of more flavors in India. (lemon tea, black tea).
,:3.34124701,;47833/,024390,-,.90,
Related
#0,90/
#0,9 Diversification:
0/ ;
;0781.
0781.,943 Future
,943:9
:9:7
:70 strategy
0 897,
897,90
90 4 of1 0390
entering
03 907
73 children’s
3 .
. /7
/703
038 drinks
8 /73
/7 3 like
8
0
Complan, 4:73;9,47.8
425,3 Bournvita, Horlicks.
Bundling: !74;/3,-:3/05,.0,82,90,8,.091700928
:3/3 Providing a bundle pack like a small tea sachet free with 100 Gms
pack
5,.41of biscuits.
-8.:98
New Markets: 547
0,7098 Explore030,3/:39,550/2,7098
new and untapped
547030,3/:39,55 markets 3494333/,-:9,843
not only in India -:9,843
0/2,70983494333/, but also in
different .4:39708
/1107039 countries.
Branding: %0945
7,3/3 The top 2 5,0780%,9,%0,&84:/14.:8907,9903943
players i.e. Tata Tea & HUL should focus their attention
on proper
43574507
branding
-7,3/
-7,3/3 of their products
3 41907
41907 57
574/:
4/:.98 and 8
.98 ,3/
,3/ should
84:/ try 94
4:/ 97
97 to .70
94 create
.70,90 a brand
,90 ,-7,3
, -7,3/ loyalty
/ 4,
4 among 90
,9,243
9,243 the
consumers
.438:2078
of their products
41907574/:.98
42
4
,5907
RAPA ces
#010703.08
43
WEBSITES
$%$
http://www .american.edu/TED/indiatea.htm
995,207.,30/:%3/,90,92
http://beacononline.wordpress.com/2008/10/23/marketing-problem-faced-by-
995-0,.43433047/57088.422,7093574-021,.0/-
he-tea-
9090,
indusity/
3/:897
www.gmsworldnet.com/.../vision
2847/309.42;843* 2020 reinventing indian _tea_ industry
*703;0393*3/,3*90,*3/:897
http://www. financialexpress.com/news/tata-tea-hul-war-brews-in-tea-
99513,3.,057088.423089,9,90,:,7-708390,
mkt/496631/
29
www.hindustantimes.com
3/:89,39208.42
http://www. indiatea.org/teascenario/teascenario.html (Financial)
9953/,90,4790,8.03,7490,8.03,74923,3.,
www.naukrihub.com
3,:7:-.42
www.teaboard.gov.in
90,-4,7/4;3
http://www.scribd.com/doc/24393545/FMCG-Project
9958.7-/.42/4. !740.9
http://www.scribd.com/doc/26195273/Lipton-Y
9958.7-/.42/4. ellow-Label-tea-survey
594304,-090,8:7;0
www.wikipedia.com
50/,.42
teaboard.gov.in/pdf/tea_statistics/Tea_Statistics 1955.pdf
90,-4,7/4;35/190,*89,989.8%0,*$9,989.8*5/1
http://www.thehindubusinessline.com
995903/:-:8308830.42
44
Chapter-5
,5907
Conclusion
43.:843
45
From this project we come across that there is much competition in the FMCG
742985740.90.420,.74889,9907082:..42509943390
sector. All the companies are making their strategy to sustain in the market with
80.94790.425,308,702,3907897,90948:89,33902,7099
good profit. Here we see the two players of tea industry and their strategy.
44/57419070080090945,0784190,3/:897,3/907897,90
We can say that even if the company goes strong after that it has to be ware with
0.,38,9,90;03190.425,340889743,19079,99,894-0,709
the changing environment of the market, if the company want to gain profit in
90.,3303;743203941902,709190.425,3,3994,3574193
EAAANS SAE AAR LEC EAE ORTOP HD LRG PRS HER, CRRA VENE He
902,709,3/,84940944/5489433902,709,..425,3,;094
/039198897039,3/0,308817429,943,..425,3.,38:7;;0390
marker
2,709
46
You might also like
- Vishal Project Report of Marketing Mba 4 SemisterNo ratings yetVishal Project Report of Marketing Mba 4 Semister52 pages
- Tea Blending Unit: Profile No.: 211 NIC Code: 10791No ratings yetTea Blending Unit: Profile No.: 211 NIC Code: 1079112 pages
- A STUDY ON TEA INDUSTRY IN INDIA (1) FINAL 15No ratings yetA STUDY ON TEA INDUSTRY IN INDIA (1) FINAL 1540 pages
- BY: ANJALI (202) ANKITA (203) ANKUR (204) ANSHUL (205) ANURADHA (206) NIKITA (233) TimotheeNo ratings yetBY: ANJALI (202) ANKITA (203) ANKUR (204) ANSHUL (205) ANURADHA (206) NIKITA (233) Timothee29 pages
- Research Report by VIJAY KUMAR FDDI, NOIDA, INDIA100% (2)Research Report by VIJAY KUMAR FDDI, NOIDA, INDIA75 pages
- Tea Industry Analysis of Jayshree Tea IndustriesNo ratings yetTea Industry Analysis of Jayshree Tea Industries30 pages
- Analysis of The Recent Development of The Ready-Made Tea Industry in China Based On The Innovation of HEYTEANo ratings yetAnalysis of The Recent Development of The Ready-Made Tea Industry in China Based On The Innovation of HEYTEA8 pages
- 0417 Information and Communication Technology: MARK SCHEME For The March 2015 SeriesNo ratings yet0417 Information and Communication Technology: MARK SCHEME For The March 2015 Series12 pages
- "A Study On Globalization of Indian Tea Industry": R V Institute of ManagementNo ratings yet"A Study On Globalization of Indian Tea Industry": R V Institute of Management3 pages
- Analysis of The Tea Sector in India ANDNo ratings yetAnalysis of The Tea Sector in India AND12 pages
- A Project Report On Product Line Extension of NestleNo ratings yetA Project Report On Product Line Extension of Nestle38 pages
- Biting/Chewing (Masticatory) Difficulty (NC-1.2)No ratings yetBiting/Chewing (Masticatory) Difficulty (NC-1.2)3 pages
- 2004 - 2011 Titan and Armada Driver Side Air Mix Door Motor ReplacementNo ratings yet2004 - 2011 Titan and Armada Driver Side Air Mix Door Motor Replacement6 pages
- Life Sciences Grade 10 Plant Tissue Notes Covid 19 HometeachingNo ratings yetLife Sciences Grade 10 Plant Tissue Notes Covid 19 Hometeaching6 pages
- IFBB Pro League Bikini Champ Janet Layug's Leg Day Workout - Muscle & FitnessNo ratings yetIFBB Pro League Bikini Champ Janet Layug's Leg Day Workout - Muscle & Fitness1 page
- Biology Practical Experiment 12,13, 14 & 15No ratings yetBiology Practical Experiment 12,13, 14 & 158 pages
- Cambridge International AS & A Level: BiologyNo ratings yetCambridge International AS & A Level: Biology21 pages
- Method Statement For Testing & Commissioning of Smoke Extract FansNo ratings yetMethod Statement For Testing & Commissioning of Smoke Extract Fans3 pages
- 54D Pneumatic - Electronic Pressure SensorNo ratings yet54D Pneumatic - Electronic Pressure Sensor3 pages
