Logistics in Exporting Tea from India to UK

Group 5 – Section B

Agenda
• • • • • Introduction to Tea Industry Types of Tea exported Tea producing areas Production Process Exporting Process

Indian Tea Industry
• Indigenous part of India • Ancient origins – cultivated and consumed for thousands of years • Commercial production started when East India Company arrived in India • Competition in tea export – China, Sri Lanka, Kenya

Statistics of last five years – Quantity Exported

Statistics of last five years – Value of Export

Types of Tea produced
Crush, Tear, Curl (CTC) • Widely used by most factories • Quick Brewer • Yield more cups of Tea / kg • Virtually entire demand Orthodox • Traditional mode • Diffuses slowly • Difficult to package • Yields less cups of tea/kg

Tea Producing areas in India

Major varieties of tea exports
• Darjeeling Tea • Assam Tea • Nilgiri Tea • Kangra Tea

Export of Tea to UK

Logistics
Tea leaves plucked from estates Containerizat ion

Tea Packaged in produced cartons in factories Air freight

Finally served to customers

Shipped to retailers via distributors

Ship load

Tea packing for export
Tea packaging is done is several ways depending upon requirements • Wooden boxes • Plywood boxes with aluminum lining • Paper packaging • Cartons

Air Route
The Tea consignment to UK if it goes by air it can take the following routes: • Mumbai to London • Kolkata to London • Delhi to London London Heathrow Airport is the biggest Airport in UK and have daily flights from these Indian cities.

Air Route

Statistics: Air Route
• Air distance : 7,200 kilometers • UK is 4.5 hours behind India • Flying time of about 9 hours. Average air speed for a commercial airliner of 805 km/hr • Total delivery time is appox. 4-5 days

Air Freight Charges
• Depends on how early the booking is made • On urgent basis the cost is appox : 45,00,000 INR • Appox $91000 • If booked 3 months earlier $45000

Sea Route
If it goes by SEA it can take the following route: Loaded at Nhava Sheva International Port – Mumbai Amingaon dry port – Assam Haldia Port - Kolkata and transported to Grimsby and Immingham Port – UK London Port – UK

London Port, UK

Suez Canal

Amingaon, Nhava Sheva, Assam Mumbai

Statistics: Sea route
• Nautical miles : 3890 nautical miles • Time taken to reach UK : 15-20 days appox • Port clearance : 1 day • A total of appox 25 days for exporting Tea to UK • The rates are $500 for a 20 feet container and $900 for a 40 feet container • The rates were about half last year

Drivers of Supply Chain
• Inventory : Critical Part as a lot
• • • •
depends on demand and weather conditions as well Transportation: Quality of transportation may affect the quality delivered to customer Facilities: Manufacturing and distribution centers Location: Depends on the soil conditions and favorable weather conditions Information: Technology used to track the shipment

Challenges
• Dependent on weather • Care while transportation is critical • Packaging so that aroma and freshness is intact • Prices fluctuations upon production • Price fluctuations due to oil market fluctuations

Thank You
Henry Susanto Kunal Jain Priyanka Birla Siddhartha Nagar Vikas Bahar

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