Indian tea industry

This report is a brief account on various aspects,issues,problems and their solutions for major tea producer of surastra( RAJANI GROUP OF COMPANIES). It also give a precise views on characteristics,problems of Indian Tea Industry. Report Tea is one of the most popular and lowest cost beverages in the world and consumed by a large number of people. Owing to its increasing demand,tea is considered to be one of the major components of world beverage market. The Indian tea industry is nearly 200 years old. Robert Bruce, a British national discovered tea plants growing in the upper Brahmaputra valley in Assam and adjoining areas.

In 1838, Indian tea that was grown in Assam was sent to the UK for the first time, for public sale. Tea in India is grown primarily in Assam, West Bengal, Tamil Nadu and Kerala. Apart from this, it is also grown in small quantities in Karnataka, HP, Tripura, Uttaranchal, Arunachal Pradesh, Manipur, Sikkim and Meghalaya. India has a dual tea base, unlike most other tea exporting countries. Both CTC and Orthodox tea is produced in India. UK and Ireland are the traditional markets for tea but their imports have been declining. Even then the UK blenders continue to be the global market makers.

UK is where the blending industry first started decades ago. Tea contributes greatly to the country’s GDP growth as well as foreign exchange earnings. Accounting for over 30 per cent of the global production, India is a world leader in all aspects of tea production, consumption as well as exports. The number of tea producing countries in the world has been increasing since 1950 and at present there are more than 80 such countries. Among the principal tea producing countries in the world, India occupies the first place in terms of area.

India’s area under tea presents appreciable increase during the period from 1961 to 2002 and the world’s tea area exhibited a significant rise. Tea plantation industry not only occupies a very important role in the national economy as an earner of foreign exchange but it also provides gainful employment to a large number of people. This industry, which is largely labour intensive provides employment to a large number of female workers. The industry accounted for 20 per cent and 10 per cent of the total labour force employed in the private sector in 1961 and in 2002 respectively.

Rajani group of industries is one of the major player in tea industry of gujrat. It gives employment to 350 peoples combinly in its two units. In 1975 Late Shree Gordhandas Vitthaldas Rajani And His Son Started With Tea Business (Rajani Group) In Jamjodhpur Village Of Jamnagar District With 250grams Of Tea Packets. In 1989 Rajani Group Shifted It’s Blending and Packaging Units to Junagadh and It Was Named As “Bhagyoday Tea Center”. In 1999 Rajani Group Introduced Wonderful Consumer Scheme In Which Coupons Were Given For Tea Purchase of 250grams & Above.

In the year 2002 Rajani Group Played Host To “Rajat Jayanti Mohatsav” Celebration Of Gujarat Tea Traders Association (G. T. T. A) And Gave A Warm Welcome To All Members Of G. T. T. A By Presenting Momento To Them. Rajani Group Is An Active Member Of G. T. T. A Since The Formation Of G. T. T. A & Is Also A Member Of Tea Board Of India. It also Launched Its “Premium’ Brand Tea in that year. Rajani Group Launched Its “Extra Premium” Brand Tea in year 2007. Rajani Group Was Certified An Iso 9001 Group in 2009. It lunched it’s supreme tea I year 2011. In 2012

Rajani Group Introduced “Sub Chokkas Inam Aapke Shaher Main Hi”, In Which 126 Nano Cars And More Than 1,25,000 Coupans With Gauranted Gifts Were Given Out. In The Period 16/10/2011 To 1/4/2012, The Draws Were Completed At Districts Level, Including Ahmedabad & Surat, In Front Of The Dealers And Their Retailers With Absolute Transparency which boosted its average market growth by 80%. Furute plans 1. Rajani Group Products Such As Tea, Spices, Agarbatti, Matches And The Next Upcoming Products Should Be Available At All The Retail Outlets Of 18500 Villages In Gujarat. 2.

Rajani Group Plans To Convert To Public Limited From Privatelimited And Grow Further. 3. Putting In Practice The Slogan Of Rajani Group, “Partners In Business Is Partner In Profits”, Rajanai Group Plans To Merge The Other FMCG Line Companies And Their Products With Rajani Group Brand Name Thus Giving Them A Chance To Grow Faster. TEA INDUSTRY OF INDIA Tata Tea is one of the top tea brands in India. However, there are other companies based out of the country that are performing well in the Indian market. The aggregate turnover of the tea industry in India has been estimated at INR 10 thousand crores.

After independence the land used for growing tea has increased by 40 percent but tea cultivation has gone up by more than 250 percent. Export of tea has increased by a significant margin in the last couple of years. The aggregate net foreign exchange earned by exporting tea has been estimated at INR 1847 crores. The Indian tea industry is a labor intensive one. Presently there are at least 1. 1 million workers employed in various tea companies around the country. It also creates income opportunities for almost another 10 million people. The workforce is equally distributed when it comes to gender.

Following are the leading tea brands in India: 1. Tata Tea: Tata Tea is a product of Tata Global Beverages Limited, which was set up during 1962 as a joint venture of James Finlay and Company, and Tata Sons. 2. Society Tea : Society Tea is a Hasmukhrai & Co product. The company was incorporated during 1933. 3. Duncan’s Double Diamond Tea: Duncan’s Double Diamond Tea is a product of the Duncan Goenka Group that started as Playfair Duncan during 1859. At present the group has 20 functional companies and 40 thousand workers in all. It presently earns approximately INR 20 billion, which makes it one of the leading industrial groups in India.

4. Brooke Bond Red Label Tea is a Hindustan Unilever (HUL): Brooke Bond Red Label Tea is a Hindustan Unilever Product. HUL is one of the biggest names among the Indian companies that deal in fast moving consumer goods. The company has been operating for more than 75 years. 5. Wagh Bakri Tea: Wagh Bakri Tea Group is a product of the Wagh Bakri Tea House that was incorporated during 1892 in Ahmedabad by Sir Narandas Desai. 6. Lipton Tea: Lipton Tea is a Lipton product. The company was named Thomas J Lipton Co at its inception during 1893. Its factory and head offices are at Hoboken in New Jersey.

Now the company’s products are available in at least 150 countries across the world. MARKET SHARE OF TEA COMPANIES IN INDIAN MARKET (FIG1. 1) It is clear by fig 1. 1 shown above that local players have a big role in tea industry. Apart from this it is also apparent that Tata and Hindustan unilever combinly constitute 55% of market. So it is apparent that Rajani tea has a long road to cover the rest 30% market. It is also clear that Indian tea market is fragmented and consumers have more preference for Indian sellers over its foreign counterparts.