TEA INDUSTRY

Presented by:-

Janardhan Srinivasan
Sushil Kamble Shilpa Gomase Prajakta Patil Sonal more

 About 170 years old.

Robert Bruce in 1823 discovered tea plants

growing wild in upper Brahmaputra Valley. In 1838 the first Indian tea from Assam was sent to United Kingdom for public sale. Thereafter, it was extended to other parts of the country between 50's and 60's of the last century.

India ---the largest tea producer and consumer in the world.

India ---produces some of the world's finest teas. The famous specialty flavors are Darjeeling tea and Assam Tea from the

north and Nigeria tea from the south.

Some of the features of Tea Industry are mentioned below: Labour intensive

Productivity and quality

Long gestation period Perishable in nature and demand is relatively inelastic to price. Organized agro industry

provides gainful direct employment to backward and socially weaker section of the society.

 Tea plantations in India -mainly located in rural hills and backward

areas of North-eastern and Southern States

India has dual manufacturing base-produces both CTC and Orthodox

teas in addition to green tea. Year Till 70s Since 80s-till 1991 1992-93 Since 1993 Since 2001 Events UK was the major buyer of Indian tea USSR became the largest buyer of Indian tea accounting for more than 50% of the exports. Indian tea exports suffered a setback Indian Tea exports to Russia/CIS countries recovered from the setback Depressed scenario again started

Year

Events

As on 31.12.2006

1655 registered Tea Manufacturers, 2008 registered Tea Exporters, 5148 number of registered tea buyers, 9 tea Auction centres.

 Green Tea

White Tea
Black Tea Oolong Tea

Pu-erh Tea
Scented Tea

Market Growth Rate (in %)

3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 1990-91 1996-97 1996-97 2001-02 2001-02 2006-07 2004-05 2009-10 2009-10 2014-15 Market Growth Rate (in %)

% share in world production

1 2 4 4 1 1 8 31
China India Sri Lanka Kenya Turkey

4
9

Indonesia Vietnam Bangladesh Malawi

9 26

Uganda Tanzania Others

Per capita consumption in India

Per Capita Consumption(Grammes Per Head)

Indias share in world exports

% share in world exports

720 700

2
680 660 640 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-2010
Per Capita Consumptio n(Grammes Per Head)

0.003 3.997 21 23

Kenya Sri Lanka

China
India Vietnam Indonesia

6
7 12 18 18

Argentina Malawi Uganda Tanzania

Bangladesh
Zimbabwe Others

% of production

21 North India production South India production

79

Demographywise Market Segmentation(in %)

Areawise Market Segmentation(in %) 19

45 55

Rural Urban

36 25 20

North East

West
South

Market segmentation(%)

28
Domestic Export

72

Share (%)

Hindustan Lever Tata Tea 25 Others

Other companies include:Eveaready, Jayashree Tea Goodricke Group George Williamson Warren Tea Sterling Biotech AFT Industries Duncans Inds Assam co A.V. Thomas

11 64

Strengths:Old Industry-Experience, Manpower and Technical Skills, Good Research Support Opportunities:Quality and Brand Equity, Export Potential, Big Domestic Market, Financial Institution Support Threats:Open Global competition, Low Cost in some countries, Import of Tea, Uncertain Price

SWOT Analysis

Weaknesses:Min dev investment, Stagnant Production, No Effective Cost Management, Declining Exports

Conclusion

Potential EntrantsReliance

Bargaining power of suppliers

Suppliers

Threat of new entrants Industry Competitors Rivalry among existing firms

Bargaining power of buyers

Buyers

Threat of substitute products or services

SubstitutesCoffee

Taking into consideration the threat of new entrants, threat of substitutes, bargaining power of suppliers and bargaining power of buyers, our strategy would be:-

Survive

Sell

Serve