TABLE OF CONTENTS

CHAPTER NO. TITLE PAGE NO.

I INTRODUCTION 1

1.1 ABOUT THE INDUSTRY 1

1.2 ABOUT THE COMPANY 4

1.3 OBJECTIVES OF THE STUDY 6

II DEPARTMENTS 8

2.1 PURCHASE 7

2.2 FINANCE 9

2.3 HUMAN RESOURCE 11

2.4 PRODUCTION 12

2.5 MARKETING AND SALES 16

III FINDINGS 18

IV CONCLUSION 19

BIBLIOGRAPHY 20
 CHAPTER -I

INTRODUCTION

1.1 ABOUT THE INDUSTRY

Tea industry contributes towards the national and state economy by way of enriching the foreign
exchange reservoir state exchequer besides employment. Today the major tea growing states are Assam, West
Bengal,Tripura,Tamil Nadu,Kerela and Karnataka.It may be observed that the major portion of country’s
plantation is located in Nilgiris accounts for nearly 53 parent of the all India production.Nilgiris tea is well
known for its rich taste and colour.Being an agricultural plantation crop and a major revenue generator, tea
cultivation has become a lucrative profession in the Nil iris that has very few business opportunities and plays
a vital role in improving the socio-economic condition of the region.

Tea is the most preferable average by millions of people across the globe.Tea plantation is located in
Darjeeling and Assam,Terai and Dooars in the North Bengal.In 1689 Ovington records that tea was taken by
the banias in Surat without sugar, or mixed with a small quantity of conserved lemons, and that tea with some
spices added was used against headache, gravel and gripe. The tea leaves for such use may have come from
China.

While experimenting to introduce tea in India, British colonists noticed that tea plants with thicker leaves
also grew in Assam, and these, when planted in India, responded very well. The same plants had long been
cultivated by the Singphos tribe of Assam, and chests of tea supplied by the tribal ruler Ningroola.The
Assamese and Chinese varieties have been regarded in the past as different related species, but are now usually
classified by botanists as the same species, Camellia sinensis.

In the early 1820s, the British East India Company began large-scale production of tea in Assam, India, of a
tea variety traditionally brewed by the Singpho people. In 1826, the British East India Company took over the
region from the Ahom kings through the Yandaboo Treaty. In 1837, the first English tea garden was
established at Chabua in Upper Assam; in 1840, the Assam Tea Company began the commercial production of
tea in the region, run by indentured servitude of the local inhabitant [This tea was not for export – dis
ambiguities needed] Beginning in the 1850s, the tea industry rapidly expanded, consuming vast tracts of land
for tea plantations. By the turn of the century, Assam became the leading tea-producing region in the world.[3]

The introduction of Chinese tea plants, different from Indian tea, to India is commonly credited to Robert
Fortune, who spent about two and a half years, from 1848 to 1851, in China working of behalf of the Royal
Horticultural Society of London. Fortune employed many different means to steal tea plants and seedlings,

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which were regarded as property of the Chinese empire. He also used Nathaniel Bagshaw Ward's
portable Wardian cases to sustain the plants. Using these small greenhouses, Fortune introduced 20,000 tea
plants and seedlings to the Darjeeling region of India, on steep slopes in the foothills of the Himalayas, with
the acid soil liked by Camellia plants. He also brought a group of trained Chinese tea workers who would
facilitate the production of tea leaves. With the exception of a few plants which survived in established Indian
gardens, most of the Chinese tea plants Fortune introduced to India perished. The technology and knowledge
that was brought over from China was instrumental in the later flourishing of the Indian tea industry using
Chinese varieties, especially Darjeeling tea, which continues to use Chinese strains.

From the first, Indian-grown tea proved extremely popular in Britain, both for its greater strength, and as a
patriotic product of the empire. Tea had been a high-status drink when first introduced, but had steadily fallen
in price and increased in popularity among the working class. The Temperance movement massively promoted
tea-drinking, from the early 19thC on, as an alternative to beer – water being of dubious quality, but the
complete boiling necessary for tea rendering it safe. Many men, in particular, found China tea insipid, and the
greater strength, and lower price, of Indian teas appealed greatly. By the last quarter of the nineteenth century,
big brands such as Lyons, Lipton’s and Mazawattee dominated the market. Tea was the dominant drink for all
classes during the Victorian era, working-class families often doing without other foods in order to afford it.
This meant the potential market for Indian teas was vast. Indian tea (effectively including Ceylon tea from Sri
Lanka) soon came to be the "norm", with China tea a minority taste. Until the 1970s and the rise of instant
coffee, Indian tea had almost sole command of the hot drinks market. Its rivals were cocoa, coffee and savoury
drinks such as Bovril and Oxo. In recent decades Asian tea has lost much ground in the cheaper end of
European markets to tea from Africa, especially Kenyan tea.

Modern tea industry

India was the top producer of tea for nearly a century, but recently China has overtaken India as the top tea
producer due to increased land availability. Indian tea companies have acquired a number of iconic foreign tea
enterprises including British brands Tetley and Typhoo. Indian Tea Giant Goodricke Group parent Camellia
Plc becomes the world's largest private tea producer in 2018 producing 103 million kgs.

As of 2013 the consumption of green tea in India was growing by over 50% a year.

The major tea-producing states in India are: Assam, West Bengal, Tamil Nadu, Kerala, Tripura, Arunachal
Pradesh, Himachal
Pradesh, Karnataka, Sikkim, Nagaland, Uttarakhand, Manipur, Mizoram, Meghalaya, Bihar, Orissa.

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Nilgiri tea

Nilgiri tea is generally described as being a dark, intensely aromatic, fragrant and flavoured tea grown in the
southern portion of the Western Ghats mountains of the Indian subcontinent. It is grown in the hills of
the Nilgiris district of Tamil Nadu, though there are numerous other tea-growing districts in South India as
well, including Munnar and Central Travancore, further south in Kerala state.

Nilgiri tea plantations are represented by the Nilgiri Planters' Association, which is an organizational member
of the United Planters Association of South India (UPASI), headquartered in Coonoor. UPASI is the peak
body representing plantation owners in South India. However, plantations only account for around 30% of tea
production in Nilgiri District. The vast majority of production is undertaken by small growers, who typically
own less than one hectare each. The majority of Nilgiri tea small growers are the Badagas, a local community
of agriculturists.

Tea plantations in Nilgiri District (as in other growing districts of India) typically own and operate their own
processing factories. Small growers sell their tea as green leaf to "bought leaf factories", which are
independently owned. (Although in recent years, some plantation factories have started buying green leaf from
small growers). After processing (which converts the green leaf into 'made tea'), most is sold through regularly
scheduled auctions in Coonoor, Coimbatore and Kochi. More than 50% of Nilgiri tea is exported, and usually
finds its way into blends used for tea bags. Data is unreliable on the precise proportion of Nilgiri tea that is
actually exported. However, Neilson and Pritchard (op city) suggest that at least 70% of South Indian tea is
exported, and the Nilgiris constitutes more than half of all South Indian production.

The expensive hand-sorted, full-leaf versions of the tea like the Orange Pekoe (O.P.) are highly sought after at
international auctions making it unaffordable for most locals. In November 2006 a Nilgiri Tea achieved "Top
Honours" and fetched a world record price of $600 per kg. This was at the first ever tea auction held in Las
Vegas. A machine-sorted, lower-cost variety of high-quality tea is a semi-full leaf variety known as Broken
Orange Pekoe (BOP). However, most production occurs via the Crush, Tear, Curl or CTC process of
manufacture, which delivers a higher number of cups per measure (technically known as cuppage). The strong
flavours of Nilgiri tea make it useful for blending purposes. At the same time, Nilgiri tea has suffered from
poor reputation associated with its erstwhile reliance on sales to the former USSR, as Soviet buyers had little
regard for quality.[2] In the 1990s the collapse of this trading partner triggered a substantial economic
downslide in the Nilgiris district, which was further aggravated by various quality issues. In recent years
the Tea Board of India has charged some producers of Nilgiri tea with fraudulently adulterating their product,
and has closed some Bought Leaf Factories due to non-compliance with food safety regulations.
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1.2 ABOUT THE COMPANY

The ALWIN Tea Indusrty is a private company, which engaged with the production of tea.It was
formed on 2000 April, with registered office, in 10/302A R.G puram, Gudalur, The Nilgiris. The factory
manufactures black tea out of the harvested tea leaves from the tea garden over the above. The main sources of
green leaves are small growers and few estates. The leaves are collected from almost 600 small growers in
Wayanad and Nilgiris. The factory also purchases green leaves from third party suppliers in and around
region. The factory produces tea which is used by the blending units for the brand and for export.

Mission policy

To provide effective management services to the tea sector for efficient production, processing and marketing
of high quality tea for the benefit of small tea growers and our customers.

Vision policy

To be a leading black tea and green tea manufacturer by adopting the new technologies and quality
improvement methods to enhance the productivity and efficiency and pay more attention to our loyal
customers by providing friendly service.

Quality policy

AlWIN Tea Industry (p) Ltd is committed to effective management services in the production, processing and
marketing of high quality tea for the benefit of our farmers, our staff and other stakeholders. Our key goal and
objective is to meet and exceed our customer’s expectation in providing quality products and consumer
expectations in regard to safety, value and associated services. We shall endeavour to continually maintain and
improve efficient and effective quality management systems meeting both the regulatory and the trustee
requirements.

Our core values

 Customer focused
 High standards of Ethical Practices
 Social responsibility
 Equal Opportunity employer
 Team work

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Company profile

Company name T.C TEA AND ENTERPRISES

Established year 2006

Legal status of the firm Private limited company
Industry category Tea industry

Nature of business Tea producer

Proprietor T.C Varghese

Manager Manoj

Shifts 3

Address 12/619,Marthoma Nagar P.O ,

Gudalur.The Nilgiris.
Product Tea dust

Total employees 56
Annual turnover 6 crores

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1.3 ORGANIZATIONAL STRUCTURE

Managing

Director

Manager

↓ ↓ ↓ ↓ ↓

Production Finance Purchase Marketing Human Resource

↓ ↓ ↓ ↓ ↓

Tea Maker Accountant Agents Sales Executive HR Executive

↓ ↓ ↓

Assistant tea maker Growers Staff

Mechanic

Supervisor

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 CHAPTER - II

DEPARTMENTS

There are departments functioning in the company. They are

 Production department
 Financial department
 Marketing department
 Human resource department

2.1 PURCHASE DEPARTMENT

Purchasing Department is a vertical focused on functional activity of buying raw materials, goods
and services. It includes supplier identification and selection from where you will be buying the goods,
negotiating and contracting, supply market research, supplier measurement and improvement and purchasing
system and development.

The foremost process of the purchase department is to collect the raw materials. It plays an important role in
business.

Purchase of tea leaves

The leaves are the basic raw materials of product. The industry purchases the tea leaves from the small
growers and the agents. The leaves are collected from almost 200 small growers in Wayanad and Nilgiris.They
are collected from agents. There are 9 agents who collect tea leaves from 540 small growers. The leaves are
weighted in the weighing bridge and the tea leaves are moved to the trough through the conveyers. During
season the daily leaves are 20000 kgs and during normal period it is 3000 kgs per day.

Objectives

 Reduce risk and ensure the security of supply

 Lower costs. This is by far the primary function of the purchasing department
 Manage relationships
 Improve quality
 Pursue innovation
 Leverage technology

7
Department structure

Tea Maker

Agents

Growers

8
2.2 FINANCE DEPARTMENT

Finance is the life blood of a business. The business function of a finance department typically includes
planning, organizing, auditing, accounting for and controlling is company’s finance statements.

It takes care about accounting. Maintaining proper books of accounts and maintaining good financial position
of the industry.

The accounts are audited by Auditor J.Mathew yearly. The factory’s overdraft is 45 lacs.

Goods and service tax

The Goods and Service Tax is 5% of tea dust

Income tax

Income tax is 30% of profit.

Objectives

Finance department is considered as the backbone of any company. No doubt T.C TEA AND ENTERPRISES
has a very dynamic finance department which records all the financial transactions in a systematic manner
carry the firm towards success.

Responsibilities of accounting department

 MONEY OUT :
Making payments and keeping bills paid.
 MONEY IN:
Processing incoming payments
 PAYROLL:
Make sure everyone gets paid
 REPORTING:
Preparing financial reports
 FINANCIAL CONTROLS:
To avoid errors, fraud and theft.

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Major functions of finance department

 To ascertain the result to operation that is profit or loss

 Allotment of funds to various departments
 Regulation of payments
 To exercise control over the assets
 Maintenance of records (it maintains purchase account, sales account, trading, profit and loss account
and balance sheet).

Department Structure

Finance Executive

Accountant

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2.3 HUMAN RESOURCE DEPARTMENT

A Human Resource (HR) department is a critical component of employee well-being in any business, no
matter how small. HR responsibilities include pay roll, benefits, hiring and keeping up to date with state and
federal tax laws.

In this industry recruitment begins when there is a need for skilled and unskilled persons.

Functions of HR department

• Ensure compliance with labour laws.

• Recruitment and training.
• Position classification and grading.
• Personnel data entry & record keeping.
• Payroll & benefits.
• Managing employee relation.
• Employee performance improvement plans.
• Consultation and advisory services to management and employees.

Bonus share to workers

The bonus is 8.33% of the salary of workers

The workers have a leaves of 15 days in a year

Working time of workers

The workers working time is 8 hours in 2 shifts of morning 8am to 12pm and afternoon 1pm to 4pm.

Wages of workers

They receive a daily wage of Rs.245 per day and an additional wage of Rs.55 per hour.

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2.4 PRODUCTION DEPARTMENT

Production is the functional area responsible for turning inputs into finished output. The production
manager is responsible for making sure that raw materials are provided and made into finished goods
effectively.

Objectives

 Maximum production with high quality and quantity

 To ensure high man power productivity
 To maintain good working environment
 To ensure safety and security to the employees

Stages of production department

Withering

↓
Shredding

↓
Rotor vane
↓
CTC1
↓
CTC2
↓
CTC3
↓
Fermentation
↓
Drying
↓

Grading
↓
Cleaning and Packing

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Withering:

Withering means reducing the moisture content of the leaves and rendering into malleable as soon as green
leaf is received in the factory, it is weighted in the factory and spread in a withering troughs.

For removing the moisture from leaves air is blown into the leaves by blower fans. The leaves are kept in the
troughs minimum 12 to 16 hours for chemical and physical withering.

Shredding:

After withering the leaves are shredded include small fragmentation then the shredded leaves are mixed in a
machine called rotor van where the leaves are getting twisted the discharged tea leaves falls on the CTC
machine.

CTC-crush, tare, curl:

CTC means crush, tare and curl.There are four machines cutting the leaves. In each cutting machine there are
two rollers running in opposite direction and the rollers have horizontal and vertical grooves on them which
crush the leaves and make into powder. These rollers are made out of stainless steel.

Fermentation:

This process will be continued for 60 to 100 minutes once the tea gets fermented it will be arrested by passing
the tea to a dryer with 122 to 130 degree Celsius hot air.

Drying:

In dryer while passing the hot air the fermentation is arrested and the moisture content in the fermented dust is
removed by drying. After drying the moisture content in the dried tea will be 2 to 3 %.The dryer’s heat energy
is produced by burning fuel like firewood.

Grading:

The dried tea through a conveyer is passed into a machine called fibre extractor where the fibres content from
the tea separated by using static electricity. After removing the fibre, the tea passes through two different
sorters and graded into 9 varieties of tea. They are:

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Dust grade:

 SFD
 SRD
 RD
 PD

Leaf grade:

 PF
 BOPF
 BPS
 BOP
 BP

Cleaning and packing:

Once again this tea are cleaned and packed in containers of jute bags with polythene liners bulk sale and pack
in the pouches for retail market.

The factory teas are sent to auction and to various destinations for sales some of the qualities are being
exported to overseas.

Machineries used:

 Rotor van-1
 Shrudder-1
 CTC drum-3
 Heater-1
 Dryer-1
 Fibre Extractor-2
 Trinix-2
 Winnower-2

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Department structure

Production Department

Tea Maker

Assistant tea maker

Mechanic

Supervisor

Employees

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2.5 SALES AND MARKETING DEPARTMENT

A sales and marketing department has the responsibility deciding and what the prices should be and where the
company should be.

ALWIN Tea Industry pvt ltd has its own marketing system throughout south regions of India. They are Tamil
Nadu, Kerala and Karnataka.

Objectives

 Increase sales
 Build brand awareness
 Grow marker shares
 Launch new products or services
 Target new customers
 Enter new markets internationally or locally
 Improve stakeholder relations
 Enhance customer relationship
 Improve inter communications

There are three main auction centers.They are :

 Coimbatore
 Coonoor
 Cochin

The Coonoor tea trader association is widely used by the industry for the auction.

Functions

 Marketing of product
 Tele marketing
 Sales promotion activities
 Enquiring management
 Direct sales
 Delivery
 Post sales follow up

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Marketing process

Warehouses

Auctions/broker

Buyers

Types of sales

 Wholesale
 Retail

Wholesale

The industry sells goods mostly in wholesale, wholesale is made in bulk bags. The quantity per bag is
500 kgs. Each bag is sealed with seal and number.
The industry sells not only tea dust but also the green leaves.

Retail
Factory even distributes goods in retail well packed small pouches and packets.

Department structure

Marketing

Sales Executive

Staff

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 CHAPTER - III

OBSERVATIONS

 The cleanliness of the office and production unit was the attractive point.

 The concerned department takes care of its activities.

 Proper safety and extra benefits to the employees.

 Employees are provided with good working environment.

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 CHAPTER – IV

CONCLUSION

 The study at ALWIN Tea Industry provided the opportunity to experience the
organizational environment.

 The study finds out areas of strength, opportunities, weakness and threats of the company.

 The organization’s culture in treating their customers and employees feel good about the
Organisation.

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 BIBLIOGRAPHY

Books:

 Philip Kotler and Gray Armstrong, Principles of Marketing, Published by Dorling Kindersley (India)
Pvt. Ltd., 2005

Websites:

 www.alwinteaindustry.com
 www.the hindu.com

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