[go: up one dir, main page]
Scribd
Upload
611 views14 pages

Indian Tea Market Overview and Trends

Indian tea industry is the largest producer and consumer of tea globally. It produces orthodox and CTC teas. Tea is classified and graded based on processing, leaf size, and quality. The key players in India are Hindustan Lever Ltd, Tata Tea, and regional plantation companies. While exports have declined, domestic sales are driven by discounts and promotions. The future of tea industry relies on value-additions through innovative packaging and marketing strategies to promote tea as a beverage experience beyond regular drinking.

Uploaded by

ajaylamaniyapl
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
611 views14 pages

Indian Tea Market Overview and Trends

Indian tea industry is the largest producer and consumer of tea globally. It produces orthodox and CTC teas. Tea is classified and graded based on processing, leaf size, and quality. The key players in India are Hindustan Lever Ltd, Tata Tea, and regional plantation companies. While exports have declined, domestic sales are driven by discounts and promotions. The future of tea industry relies on value-additions through innovative packaging and marketing strategies to promote tea as a beverage experience beyond regular drinking.

Uploaded by

ajaylamaniyapl
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
  • Introduction: An introductory page outlining the focus of the market analysis on Indian tea.
  • Tea Industry: Discusses the general philosophy and nature of the tea industry.
  • Classifications and Grades of Tea: Outlines the different classifications and grading criteria for tea, including black and green tea varieties.
  • Indian Scenario: Examines the Indian tea market and industry significance, including production and export statistics.
  • Plantations: Details major tea producing regions in India, focusing on notable locations in the northeast and south.
  • Future Projections: Discusses future prospects and industry predictions, including policy changes and investment plans.
  • Key Drivers: Explores the key factors driving the tea market, such as product innovations and marketing strategies.
  • Pepsi and Lipton JV: Describes the strategic joint venture between Pepsi and Lipton in the tea market.
  • Porter’s Five-Force Analysis: Analyzes the competitive environment of the tea industry using Porter’s Five Forces framework.
  • Major Indian Tea Companies: Lists the major companies involved in the Indian tea market and their notable brands.
  • Industry Outlook: Provides insights into the future growth potential and challenges facing the tea industry in India.

Indian Tea :

Product Market
Analysis

1
Tea Industry
TEA is best had, not
written about

2
Classifications and Grades
of Tea

 Tea differentiated on:


• Processing
• Leaf size
• Grade
 Classification:
• Black and Green tea
• Black tea further classified into CTC
(cut, tear and curl) and Orthodox tea.
3
Indian Scenario
 India has long held the title of being the largest tea
producer and consumer in the world.
 It is the only country, which produces both CTC and
orthodox teas in sizeable quantities.
 It has a share of 15% of the world’s tea exports.
 The tea market has declined by 9% in 2002.
 Discounts and freebies push the volumes.
 Hindustan Lever Ltd with a market share of 45% is
the leading player in the packet tea business.
 Regional players enjoy the advantage of price
differences, because the procurement cost is low when
tea prices are depressed. 4
Indian Scenario
 Darjeeling's exclusive taste and quality, as well as the
fact that it cannot be replicated anywhere else in the
world, makes it one of the most sought after teas in the
world.
 The Assam region produces more tea than any other
region in India. Assam teas are known for their strong,
full, rich, full-bodied, pungent and sometimes malty
bright liquor flavour.
 Branded packaged teas account for 33-35% by volume.
Hindustan Lever (HLL) leads with around 43-45%
market share of the packaged tea market, while Tata Tea
is No. 2 with around 17-18% market share.
 Collapse of Soviet market reduced exports.
5
Plantations

 Northeast
• Upper Assam – largest production
• Northern West Bengal (Darjeeling)

 South
• Nilgiri

6
What is the Future?

 The Government has decided to fully open


the tea industry to foreign investment.
 The FDI limit has been raised from 26% to
100%.
 This is hardly any incentive for foreigners
to pump money into an ailing industry
beset with high costs and low realizations.

7
Key Drivers
 Value-additions through changes in the product
forms:
• packaging innovations;
• delivery systems, promotional policies and marketing tie-
ups
 Tea bags, the most common form of value-addition,
dominates the world market
 With tea marketing becoming increasingly diffused
as compared to other beverages like wine or soft
drinks
 There have been corporate alliances in the form of
co-branding, joint ventures (JVs) and partnerships to
draw synergistic benefits 8
Key Drivers (Contd.)
 Value – additions across the spectrum
 Product modifications
• Hot > Cold
• Conservative > Flavoured
• Cuppage > Convenience
 Tea bags
 Instant tea
 Iced tea
 Speciality tea
 Gourmet tea
9
Pepsi and Lipton JV
 Pepsi manufactures and distributes Lipton’s iced tea in glass
through its C&G (convenience-stores and gas stations)
distribution channel
 Revenue Drivers – Packaging, branding, marketing, value-
added products, etc.
 Cost Drivers – Fixed costs in plantations, processing and
distribution expenses, advertising, etc.
 Growth Drivers – Marketing of tea as beyond the usual cup
– to whole new beverage experience with herbal and exotic
teas, ice teas, etc.
 Profit Pools – Tea accessories, high quality tea, etc.
 Value Addition – Occurs mainly in the processing and
packaging of raw tea to a packaged good – i.e. conversion of
a commodity into a product.
10
Porter’s Five-Force Analysis
 Threat of suppliers:
• Tea plantations
• Machinery
• Transporters
• Labour
 Threat of buyers:
• Initial buyers
• Final buyers
• Nature of product
11
Porter’s Five-Force Analysis
(Contd.)
 Threat of substitutes:
• Beverages
• Others
• The biggest threat to the packaged tea industry
is the loose tea industry.
 Entry and exit barriers:
• Barriers for plantations
• Barriers for tea factories
• Barriers for distributors and packagers
• Barriers for consumers 12
Major Indian Tea Companies
 Hindustan Lever Limited Brands:
• Brooke Bond Taj Mahal Tea
• Brooke Bond Red Label
• Brooke Bond 3 Roses
• Brooke Bond Taaza
• Lipton Yellow Label
• Tata Tetley
 Eveready Industries (Mcleod Russell)
 Harrisons Malayalam
 Assam Company (Assam Gold)
 Goodricke Group Limited 13
Outlook of Tea Industry for the
Future
 New areas for tea cultivation are being sought
 New markets are being sought in Iraq, Pakistan and
Afghanistan following the end of war conditions and
embargoes
 The industry is likely to witness a major
consolidation with leading players looking to
acquire smaller and marginal players
 Most analysts predict a decline in overall tea sales,
the more optimistic ones peg a growth at around
1-2% this year
 Major concerns for the industry remain rising costs
of production and value-addition 14

You might also like