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DECLARATION

I hereby declare that the project titled Effect of brand on customer

purchasing with regards to teais the original pieceof work done by me & the

same has not been previously submitted toany university for fulfillment of any

course & that the project shall be liable to be rejected or cancelled if found

otherwise.

Place: ROHTASH ARORA

Dated:

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ACKNOWLEDGEMENT

Preservation, inspiration and motivation have always played a key role in

the success of any venture. In the present world of competition and success,

project work is like a bridge between theoretical and practical working.

Willingly I prepared this particular dissertation. First of all I would like to thank

the supreme power, the almighty god, who is obviously the one who has always

guided me to work on the right path of my life.

(ROHTASH ARORA)

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PREFACE

There is fast and rapid change in the security system industry especially

regarding the marketing practices of the various companies. The preferences of

the customers are fast changing.

Since the industry is fast expanding and its vast scope in the present, the

present study has been attempted to examine the marketing practices.

The study is an attempt to the highlight various technologies of security

systems and hence the first chapter covers the introduction to the project. Insecond chapter there is description of company profile. The third chapter dealswith the research methodology and hence various factors affecting customer,marketing practices of samples companies & their relative positioning Vs. thefactors in analysis part are covered. However finally, the report covers thefindings & recommendations for suitable marketing practices in industry.

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Index

Sr no. subject Page

No.1. About Tea 2

2. History of Tea 3

3. Heritage of Indian Tea 6

4. Tea And Our Health 8

5. An Overview Of An Indian Tea Industry 11

5a. Import And Export of Tea 14

6. Global Scenario of Tea Industry. 18

7. Type of Tea 20

7a. According to State 217b. According to Nation 23

7c. According to Color 29

8. Major Market Player in Tea Industry 37

9. Consumer Behavior 46

10. Market Research On Consumer Behavior With Respect ToTea Industry

50

11. Bibliography

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About TEA

Tea is a part and parcel of Indian social, economic and cultural life. Indians cannot think of a

day without their favorite cuppa tea. Tea is the most popular non-intoxicating beverage in the

world enjoyed by the rich and poor alike.

Tea is both an official and unofficial drink. A drink popular with the intellectuals and the

happy-go-lucky crowd. The Annual Book Fair of Kolkata, India, is dotted with tea stalls.

Indian literature and especially Bengali literature is replete with incidents of steamy

discussions over tea. In India, we have less of formal tea parties, in British style. "Adda" or

an informal get-to-gather is what we usually associate with tea. Roadside tea is immensely

popular among the masses. It is quick, convenient and has a unique taste.

The Indian Tea industry was founded in the first half of the 19 th century with the discovery of

wild tea plants in Assam. Gradually, tea was cultivated, local tea markets came up and tea

companies were formed. Tea is finally packed into wooden chests or jute bags for delivery to

warehouses before being auctioned. Tea from the gardens is also packed into consumer packs

and sent to distributors. Being one of the world's largest producers of tea, India requires a

large network of tea producers, retailers, distributors, auctioneers, exporters and packers. The

tea industry of India acts as one of the largest workforces in the country.

Tea is one of the most refreshing and popular beverages of the world. India is one the largest

Tea producer in the world. Indian tea is the finest quality in the world. Tea is being

cultivated in the high ranges of Northern and Southern India.

INTRODUCTION

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Tea is one of the most refreshing and popular beverages of the world. India is one of

the largest tea producers in the world. Indian tea is of the finest quality in the world. The

industry has also been a major foreign exchange earner besides providing billions of hot cups

of a delicious and invigorating drink to the people of India.

India consumes about 75% of the total output. Annual growth in domestic tea

consumption dropped by around 1.8% during 1998-2001, from an earlier rate of around 3%.

Tea is being cultivated in the higher regions of Northern and Southern India. North

India, Darjeeling and Assam account for 75% of tea output, leaving about 25% to South. The

industry in South had a difficult phase in the last few years. Tea prices remained below cost

of production. There was, therefore, no incentive to produce more. The export market for

Indian teas is mainly in the Russian and CIS countries with 90 million kgs of the total exports

going to these countries.

This is equivalent to 43% of Indias tea exports. India also exports tea to most of the

European countries, USA, Japan, West Asia and the Asia Pacific region. In fact there is

hardly any country where Indian tea is not found. In all aspects of tea production,

consumption and export, India has emerged to be the world leader, mainly because it

accounts for 31% of global production. It is perhaps the only industry where India has

retained its leadership over the last 150 years.

Some statistical facts about the Indian Tea Industry:

The total turnover of the tea industry is around Rs. 10,000 crores.1

Since independence tea production has grown over 250%, while land area has just

grown by 40%.

There has been a considerable increase in export too in the past few years. Total net

foreign exchange earned per annum is around Rs. 1847 crores.

The labour intensive tea industry directly employs over 1.1 million workers and

generates income for another 10 million people approximately. Women constitute 50% of

the workforce.

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The Indian branded tea market is highly vibrant and full of challenges. This article

looks at some of the interesting aspects constituting the branded tea market in India in the

packed, tea bag and flavored tea segments.

Branded tea market of India: not everybodys cup of tea India is a vast country of 1.2

billion populations spread out in 5000 plus towns and 6 lakh villages. It not only has a wide

geographical spread but also has complex demographics, which lead to varied regional taste

preferences creating challenges for any tea marketer. At least 6 months understanding and

planning of the markets from a macro perspective is required to plan the market of any

branded tea across India. Things are more difficult with most of the branded tea retail market

in India being highly unorganized and being catered through 2.5 million

grocery/kirana outlets.

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods

(CPG), are products that have a quick turnover and relatively low cost. Consumers generally

put less thought into the purchase of FMCG than they do for other products. Though the

absolute profit made on FMCG products is relatively small, they generally sell in large

numbers and so the cumulative profit on such products can be large.

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FMCG Products and Categories

Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps);

Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products;

Household care fabric wash including laundry soaps and synthetic detergents;

household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air

fresheners, insecticides and mosquito repellents, metal polish and furniture polish.

Food and health beverages, branded flour, branded sugarcane, bakery products such

as bread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices,

bottled water etc, snack food, chocolates, etc.

Frequently replaced electronic products, such as audio equipments, digital cameras,

Laptops, CTVs; other electronic items such as Refrigerator, washing machines, etc.

coming under the category of White Goods in FMCG;

Sector Outlook

FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs.

60,000 crores. FMCG sector generates 5% of total factory employment in the country and is

creating employment for three million people, especially in small towns and rural India.

Industry segmentation and players

Packet tea market is highly proliferated, matured market with more than 300 brands in the

country though dominated by HLL and Tata tea which have presence in all pack size and

price variants and jointly control a market share of 40 per cent of the packet tea industry. The

next major players Duncans, Eveready, Goodricke, GPI,

Waghbakri, Girnar, Sapat, Dhunseri, Mohini, Society, Marvel etc. have strong regional

presence. In this segment there are 40 mid-size players having 80 brands among them. The

remaining market is far more fragmented and shared between numerous small players. Tata

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Tea has Agni brand as key growth driver in the economy segment within packaged tea.

Hindustan Lever has brands such as Taj Mahal, Red Label, Taaza, A1 and 3 Roses, which are

all popular.

While packet tea segment has more than 300 brands and is characterized by severe

price competition, the teabag segment is a product category, which is not a mass product yet.

The largest tea bag manufacturer in India which packs several of the leading tea bag brands

Lipton, Taj Mahal, Tetley, Nestle, Double

For over 4 decades, Taj Mahal has been the gold standard of tea in India. It has been a

pioneer of innovations in the Indian tea market. First premium tea. First to introduce tea bags

. First and only tea brand in vacuum packs. First to usher in new formats and concepts, like

instant tea (in the form of Dessert Tea)

Taj Mahal is special because it is made from the rarest and the best tea leaves. Brooke

Bond experts go through a lot of rigour to ensure that only the best, freshest and juiciest tea

leaves from a thousand go into every Taj Mahal pack. Call us choosy but we want every cup

of Taj Mahal to give you the perfect sensorial experience thats one in a thousand.

TajMahal tea is the market leader in the 15,000,000 Kg Indian Premium leaf tea market. This

40 year old brand is constantly evolving to the changing times. The brand which is estimated

to be worth Rs 200 crore, so far had a consistent promotional strategy which placed itself in

the top league. But with the competition catching up in the form of Tata Tetley and the fear

of young consumers moving away from the brand is causing a concern to the brand owners.

The brand has already undergone 4 makeovers.

Brooke Bond & Company was founded by Arthur Brooke who was born at 6 George Street,

Ashton-under-Lyne, Lancashire, England in 1845. He opened his first tea shop in 1869 at 23

Market Street, Manchester, Lancashire. There was never a "Mr Bond"; According to current

boxes of Brooke Bond Tea, Arthur Brooke chose the name because it was his 'bond' to

customers to provide a quality tea, hence Brooke Bond. The firm expanded into wholesale tea

sales in the 1870s.

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In the 1950s and 1960s, packets of Brooke Bond tea included illustrated tea cards,

usually 50 in a series, which were collected by many children. One of the most famous

illustrators of these cards was Charles Tunnicliffe, the internationally acclaimed bird painter.

Most of the initial series were wildlife-based, including 'British Wild Animals', 'British Wild

Flowers', 'African Wild Life', 'Asian Wild Life', and 'Tropical Birds'. From the late 1960s,

they included historical subjects, such as 'British Costume', 'History of the Motor Car', and

'Famous Britons'. Complete sets and albums in good condition are now highly sought-after

collectors' items. The inclusion of these cards in packets of tea ceased in 1999. There were

well over 200 series issued and many of them have since been reprinted. A comprehensive

list of the these series can be found at the London Cigarette Card Company.

Hindustan Unilever Limited also called Hindustan Lever Limited (HLL) was

established in 1933 asLever Brothers India Limited. Hindustan Lever Limited (HLL) is

India's largest Fast MovingConsumer Goods Company, with a customer base of 2 out of

every 3 Indian in the category of Home & Personal Care Products and Foods & Beverages.

The company has combined volumes of about 4 million tonnes and sales of Rs.10, 000

crores. HLL is also one of the country's largest exporters; the Government of India has

recognized HLL as a Golden Super Star Trading House.

History of TEA

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Tea is often thought of as being a quintessentially British drink, and we have been drinking it

for over 350 years. But in fact the history of tea goes much further back.

In the world, tea is second only to water in being the beverage of choice. It has many uses,

such as to bring on sleep, restore good health, calm in times of stress, and simply add to the

enjoyment of a solitary afternoon by the fire or a good old chinwag with friends. It can be

taken hot or iced, plain or with lemon, milk or sugar, and drunk from a hefty mug.

The word tea refers to the leaves or flower buds of the shrub Camellia sinensis and is known

as pure teas; however infusions can be made from steeping any leaves, berries, flowers, root,

bark or seeds in boiling water. The Chinese first brought to light the pleasures of tea drinking

around 4,000 years ago, and called it the gift of heaven. It was first referred to in the

writings of the emperor Shen Nung in about 2737BC, and legend has it that he insisted that

his drinking water always be boiled, as he had noticed that those people who did so appeared

healthier than those who did not. One day as the water was boiling, some leaves from an

overhead branch blew into the pot; he was attracted by the fragrance, drank it and voila! The

venerable cup was born.

The cultivation of tea gradually spread to Japan and the Far East, and was brought to Europe

in the sixteenth century by Portuguese merchants in Lisbon. It was transported by Dutch

traders who formed the Dutch East India Company, who began to trade directly with the

Orient. It was taken in France in 1636 and Russia in 1638.As the popularity of tea drinking

grew in England in the mid 1600s, that of beer and wine declined, minimizing tax revenue; to

balance out this loss Charles II introduced the first English tea taxes in 1660. Thus the black

market in tea took hold and flourished.

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By 1750, the tea craze grew into tea gardens; beautifully landscaped areas where the most

fashionable people of the time would gather to discuss the topics of the day and to pose in all

of their finery. In the mid 1800s, Anna Duchess of Bedford made popular the idea of

afternoon tea in the home, when she became hungry between lunch and the evening meal

which wasnt due to be served until at least 9 pm. She asked that a few sandwiches, cake and

a pot of tea be brought to her to stave off her hunger and the habit was born when she asked

friends to join her on subsequent occasions.

After the advent of the East India Trading Company when England began doing business

directly with the East, the first commercial tea plantations in India were started. In the 1930s

another fad hit tea dances. These were held in hotels and local halls, and attracted hundreds

of people during weekend afternoons, where they would gather to eat, drink and dance to the

sounds of the big bands. During World War II, the government made sure that all factory

workers were provided with tea in spite of the rations, in order to maintain morale a ritual

that was unmovable by the hand of God or man!

Tea drinking was slow to catch on in the Americas, after William Penn brought it to the

Quaker colony in 1682. Then as cities such as New York grew, tea gardens as fashionable as

those in England became popular; in the ten years before the Revolution, 7,800,000 gallons

of tea were drunk by 1.5 million people. Alas though, the issue of taxes reared its ugly head,

resulting in the famous Boston Tea Party, causing the rapid decline in tea as a beverage of

choice.

Herbal teas other than Camellia sinensis have been brewed for thousands of years; more often

they were drunk not just for pleasure but for healing purposes. Plato referred to them in

410BC, Aristotle in 480BC and his student Theophrastus wrote On the History of Plants,

advising of the uses of herbs. The Roman Pliny the Elder in 77AD in his work Natural

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History, referred in detail to the process of growing herbs for both culinary and medicinal

uses. In England herb teas were widely used, and many of those who came to America

brought seeds with them; chamomile, balm, elderflower and mints were the most widely

grown. After the Boston fiasco, many folk banned the use of imported tea, and so it was only

natural that domestically grown herbs took precedence; these were patriotically know as

liberty teas. Nowadays, the increasing interest in alternative medicines and organic foods

has helped revive the art of drinking tea, especially herbal which does not contain caffeine.

The English quickly developed an almost unquenchable thirst for the drink and began

searching for a way to get tea without having to buy it solely from China. In 1835 the English

East India Company, upon discovery of an indigenous variety of Camellia Sinensis in Assam,

India, established their first experimental tea plantation there. It was largely unsuccessful at

the beginning. In 1856 varieties of tea from the Yunnan and Keemun provinces of China

were introduced in Darjeeling, India, and soon thrived. Some of the most prized and

expensive Indian black teas come from this high mountain region. One year later tea was

cultivated in Ceylon (Sri Lanka).Luckily, for tea growers and consumers, a fungus wiped out

the coffee crop in Ceylon in 1869, then its' main export. This opened the door to increased tea

production and exportation.

By the early 1900's tea was being cultivated in Java, Sumatra, Indonesia, Kenya and other

parts of Africa. Presently, the United States has been added to the list of tea producers as

there is one plantation in North Carolina.

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Heritage of Indian Tea

Tea has found a permanent place in the lives and hearts of diverse peoples the world over,

and spread cheer and camaraderie for over 4500 years. Poets and philosophers have lavished

praise on it, and perhaps no other beverage has been the object of such ritual and ceremony

across the planet. Today, over 3 bn cups of tea are consumed every day across the globe,

making it the most popular and cheapest drink in the world after water. Its fragrance, flavor

and gentle aroma generate a sense of pleasure, well-being, and fellowship across the world,

around the clock.

India is the largest producer and consumer of tea in the world. Since the mid-

nineteenth century, tea has been one of the largest foreign exchange earners and a

major source of state and central taxes. Eco-friendly, it is also a caring industry that

generates income and livelihood for nearly 20 m. people in the country. Far from the

madding crowd, located in remote and backward areas, tea-growing regions have

silently, almost bashfully, evolved a remarkably humane corporate ethos.

The Heritage of Indian Tea provides a perspective of the history of the tea industry in India,

the role tea plays in our lives and that of our country, and wide-ranging developmental

initiatives that have for decades been undertaken by the Indian tea industry.

This is a story that needs to be told because few are acquainted with the fascinating process

through which the tea that enters their markets and homes passes, and how it beneficially

impacts the lives of millions of hitherto marginalized individuals. Most outside the distant

confines of the Indian tea industry will be astonished at the sheer range, scale, and scope of

the innovative welfare schemes launched by an industry that chooses to care.

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A well-researched and carefully documented book, it analyses the problems that are

threatening to bring the Indian tea industry to its knees and hampering its ability to invest,

modernize, grow, and remain competitive in world markets. It raises important questions that

deserve serious attention and, above all, decisive action. The author presents a balanced,

scholarly, and comprehensive picture of the industry as a whole bringing many hitherto

unexplored facets to light that will interest tea professionals and tea enthusiasts alike.

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Tea and Our Health

We have heard that tea is good for our health. Hard to believe that something as simple as tea

can actually keep man in good health. Research suggests that tea drinkers have lower rates of

heart disease and cancer. It may promote healthy bones in mature women. And, tea can give

the man the lift that he wants from caffeine without the negative side-effects.

According to the scientists of Human Nutrition Department of a government research centre

at Adelaide in Australia, tea effectively shields skin from cancer-causing ultraviolet rays.

High exposure to sun's ultraviolet rays generates free radical oxygen atoms that mutate the

genetic code of skin cells and makes them cancerous. The antioxidants present in tea deter

this process. These anti-oxidants also help in fighting ageing.

According to studies conducted by UPASI in India, tea helps in controlling diabetes and

hyper cholesterol in humans. On a short-term basis the consumption of tea improves

alertness. Hindustan Lever has set up a tea health information research centre at Bangalore to

gather scientific data from all over the world about the role of tea in improving health and

identification of components in tea which are good for human health.

Following are the diseases that can be prevent from drinking the cup of tea:

1. Heart Disease

2. Cancer

3. Healthy Bones

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Explanation:-

1. Heart Disease:-

Heart disease is our number one killer disease. Many people die because of heart disease each

year. The heart muscle needs a constant supply of oxygen and nutrients from blood carried

through coronary arteries. Clogged arteries inhibit the hearts supply of oxygen and nutrients.

Arteries become clogged through the buildup of plaque (a mix of cholesterol, fat, blood clots,

etc.) and can be blocked completely if a piece of plaque breaks off and gets stuck in the

artery. Then, downstream heart tissue will be starved of oxygen and nutrients.

Various studies suggest that tea plays a role in reducing cholesterol levels. In one study,

researchers found that women age 55 or older who drank as little as a cup or two of black tea

a day, were 54 percent less likely to have severe atherosclerosis, which can lead to heart

attack or stroke, than those that did not. The more tea they drank, the less their risk. This

outcome could be because the antioxidants in tea prevent bad (LDL, low-density

lipoprotein) cholesterol from promoting the plaque build-up that clogs arteries

It is found that cholesterol levels of subjects were inversely related to the consumption of

green tea. Tea helped to decrease the amount of cholesterol in the artery walls. It even helped

break down clots that had already formed

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2. Cancer :-

A study of more than 35,000 post menopausal women that showed those who drank at least

two cups of black tea a day were 40 percent less likely to develop urinary cancer and 68

percent less likely to develop cancer in the digestive tract than women who did not drink tea.

Other research shows that tea may be helpful in the fight against cancers of the stomach,

bladder, and esophagus. A study in China even concluded that smokers who drink tea have a

lower incidence of lung cancer.

Flavonoids are ubiquitous in the plant world, but tea is an especially rich source and tea

drinking can easily fit into a pattern of daily consumption. Its practically like eating fruits

and vegetables. Letting the tea steep for 3 to 5 minutes extracts 69 - 85% of the flavonoids.

Many of the studies showing that tea is protective against cancer were done in Asia where

people generally drink green tea; some research has shown that green tea has more of the

powerful flavonoids called catechins than does black tea.

3. Healthy Bones:-

Tea drinkers had significantly greater bone density measurements. These findings were

independent of smoking status, use of hormone replacement therapy, coffee drinking, and

whether or not milk was added to tea. When milk was added, BMD (bone mineral density)

was much higher. The study suggests that tea has components that weakly mimic the effect of

the female hormone estrogen which may be helpful to older women.

Tea drinkers appear to live longer after a heart attack; Drinking 3 cups of tea each day is

associated with 11% lower incidence of heart attacks; Smokers who drank 4 cups of decaf

green tea daily had a significant decrease in signs of damage to the cells and heart.

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An Overview of an Indian Tea Industry

The tea industry in India was created to satisfy England's desire for high quality black teas

without dependency on trade with China. First, the British East India Company's monopoly

of the tea trade and its dominance over India where the Company maintained the largest

private army in history had to be broken. At the same time growers and tea experts were

experimenting with seeds, plants and cuttings secured from China which they believed would

grow in India's climate. Notably, an indigenous strain of tea plant growing wild in India had

been discovered years earlier. The year 1838 marked the first Indian tea harvest, a mere 350

lbs., to be auctioned in London. It was greeted with much excitement and high reviews from

tea experts.

In 1858 the British East India Company turned its rule over India to Britain. The stage was

set for the rapid expansion of tea product. As it turned out the indigenous plants produced tea

far superior in quality to the Chinese transplants. And so the Indian tea industry was born.

Now India produces more tea than any other country.

The tea industry is also denied the benefit of deductions under section 80 HHC of the Income

Tax Act, 1961. Under section 33AB of this Act, assesses engaged in growing and

manufacturing tea are allowed a deduction limited to only 20 per cent of their profits. Other

industries are allowed 100 per cent deduction on profits from export production. (In Oct'98,

however, the union government granted this exemption to tea industry also.)

The tea industry in India was earlier suffering from stagnant production and low price

realizations. 1996-97 was a year of turnaround and 1997-98, a year for consolidation for the

tea industry. In these years almost all the tea companies in the country have witnessed

increase in sales and profits.

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The tea industry is also denied the benefit of deductions under section 80 HHC of the Income

Tax Act, 1961. Under section 33AB of this Act, assesses engaged in growing and

manufacturing tea are allowed a deduction limited to only 20 per cent of their profits.

The tea industry in India was earlier suffering from stagnant production and low price

realizations. 1996-97 was a year of turnaround and 1997-98, a year for consolidation for the

tea industry. In these years almost all the tea companies in the country have witnessed

increase in sales and profits.

The farmers invested more on fertilizers and upkeep of their plantations in 1997 and 1998

because of better price realizations which also resulted in better output in the following years.

According to the industry, subject to good weather conditions, the output in 1999 is likely to

touch still higher levels.

Indian Tea Industry at a glance:

Total turnover is approximately $2.25 billion.

Total Net Foreign Exchange earned is approximately is $413 million p.a.

Tea production, since independence has grown over 250%.

Generates income and livelihood for nearly 20 million people in the country.

Women constitute 50% of the workforce.

Tea trading in the domestic market is done in two ways- Auction and Private

Selling.

India is the largest producer and consumer of tea in the world.

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Notable Progress:-

Assistance is also being extended for establishment of a small Tea Research Field

Laboratory in Uttaranchal in order to develop a scientific package of practices

suitable for cultivation of tea in Kumaon region.

The project on application of Bio-technological tools in tea breeding which has

been coordinated by the Department of Bio Technology and partly funded by Tea

Board is in the final stages of completion.

A pilot plant has been set up at TRA Jorhat under the project on application of

electronic devices in tea manufacturing and automation which has been

coordinated by the Ministry of Information Technology.

With the establishment of pesticide residue testing laboratories in the North East

and South India, scientific data on residue in tea have been generated for

developing a national protocol which is now being considered by the Prevention

of Food Adulteration Authorities (PFA) and also Inter Governmental Group on

tea of FAO (Food and Agriculture Organization) towards harmonization of MRL.

The standards as stipulated in the European Commission and other countries are

also being circulated to the tea industry from time to time.

The National standard on quality of tea were revised and harmonized with the

International standards. Similarly the quality parameters of the International

standard ISO 3720 were also revised. The drafts for revised specifications for

green tea have been finalized for publication.

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Import and Export of Tea

The Indian tea industry is in a consolidation phase. Most branded tea players owning

plantations have been looking at divesting their plantation so as to focus on branding and

marketing. India continues to be the worlds largest producer and consumer of tea. Domestic

production as well as exports has been on a rise. However, due to stiff competition from

countries like Sri Lanka, Kenya, China, Bangladesh and Indonesia, and issues of quality,

realizations on Indian teas have been witnessing a downward trend.

Demand Supply Scenario:-

Indias tea production increased by 17.7% yoy to 149.8mn kg during Jan-Apr 2005.

Production in both the northern (up 23.7%) and southern (up 8.8%) regions witnessed an

upward trend. During the same period, total tea exports from India in volume terms grew by

7.5% yoy to 149.8mn kg. Exports from southern region grew sharply by 25.4% yoy however;

northern region registered the growth of 12.6% yoy in tea exports. Domestic prices (Kolkata

auctions) during May 2005 registered a decline of 5.6% yoy (8.9% mom) to Rs72.9 per kg

from Rs77.2 per kg in May 2004.

Tea production and exports

(mn kg) Jan-Apr 2005 Jan-Apr 2004 %

Production Exports Production Exports Production Exports

North India 94.1 20.2 76.1 23.1 23.7 (12.6)

South India 55.7 32.6 51.2 26.0 8.8 25.4All India 149.8 52.8 127.3 49.1 17.7 7.5

Source: Indian Tea Association

The estimated production of tea in India during 2003-2004 was 850.49 M.kgs as against

837.60 M.kgs in 2002-2003. However due to adverse agro-climatic conditions in the tea

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growing areas in North and South India during 2004-05, the total production is expected to

decline to reach 831 M. kg. With estimates of production from April to October being at

697.19 M.kgs

Production of Tea in India during 2011-12:-

Million kgs

YEAR April-Oct 2011-12 April-Oct 2010-11

North India 543.56 571.97

South India 153.63 161.53

All India 697.19 733.50

Tea Prices:-

In the last three months, tea prices have started declining at Colombo and Mombassa

auctions. Prices at Kolkata auction had shot up to Rs80 per kg in April 2012 however, in May

the prices have declined to Rs72.9 per kg. The average worldwide tea prices declined by

4.2% yoy and by 6.7% mom to Rs70.4 in May 2012. Tea prices at the Colombo auction fell

6.6% mom but are up marginally by 0.5% on yoy basis to Rs76.9 per kg.

Exports:-

India is the largest producer of tea and ranks fourth in terms of total tea exporters in the

world. Total world tea exports grew by 4.4% yoy to 230.2mn kg during Jan-Apr 2012. Indian

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exports in value terms grew by 7.8% yoy to Rs4.6bn during Jan-Apr 2012. Exports from

Southern region registered a strong growth of 26.9% yoy at Rs2.1bn while, exports from

Northern region declined by 4.7% yoy to RS2.4bn.

(Rs mn) Jan-Apr 12 Jan-Apr 11 Yoy (%)North India 2,448 2,568 (4.7)

South India 2,136 1,684 26.9

All India 4,585 4,252 7.8

Source: Indian Tea Association

Imports:-

During Jan-Mar 2012, tea imports into India increased to 4.56mn kg from 2.91mn kg in Jan-

Mar 2011. Vietnam was the major exporter at 1.78mn kg.

Tea imports into India:-

Countries Jan-Mar 12 Jan-Mar 11 Inc/Dec

(mn kg) (Rs/kg) (mn kg) (Rs/kg) (mn kg)

Indonesia 0.47 58.42 0.59 62.88 (0.12)

Nepal 0.22 55.55 0.73 50.47 (0.51)

Sri Lanka 0.05 92.74 0.40 97.72 (0.35)

Vietnam 1.78 36.44 0.60 26.88 1.18

Kenya 0.45 68.95 0.57 80.98 (0.12)

Others 1.59 50.08 0.02 N/A N/A

Total 4.56 45.53 2.91 59.39 1.65

Source: Indian Tea Association

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Global Scenario of Tea Industry

India and China rank as the largest and second largest, respectively, in tea production as well

as consumption. Together they account for around half of world's tea production. They export

about a quarter of their production. In global trade India's contribution is 17% while that of

China is 17.6% vis--vis the production contribution of 30% and 23% respectively. This is

because of high consumption of tea in both these countries. Other countries like Kenya, Sri

Lanka and Indonesia produce only 25% of world tea but control 50% of the global trade.

They export around 90% of their production.

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In 1999 the world's total tea produce was estimated at 2.83bn Kgs as compared to 2.96bn

Kgs in 1998. This production is expected to go up to 3.1bn Kgs by 2005. The consumption of

tea too is expected to increase by 3% per annum till 2012 (on base period 1993-95) to 3.0bn

Kgs Of this 3bn Kgs nearly 2.2bn consumption is going to come from developing countries

and rest from developed ones.

During the last four decades, Kenya has increased tea production by 25 times. Chinese tea

production has witnessed a 4.6 %. The production growth has been slower in India and Sri

Lanka at 2.3% p.a. and 0.9% p.a. respectively during the same period. The area under

cultivation, during the last four decades has gone up by 33% in India whereas in Kenya, it got

multiplied ten times during the same period. Tea production is concentrated in a few

countries due to suitable climate, soil and availability of cheap labor.

Tea consuming nations:-

Tea, as a beverage, is enjoyed by more than half of the world's population. Historically, tea

consumption has been very high in the U.K and Ireland. However, the consumption is

declining there. U.K. and Ireland accounted for one- third of the world's tea consumption in

1955. Their share in tea consumption currently is around 5%. In 1999 UK Tea popularity has

been growing rapidly in developing countries like India, China, Pakistan and the Middle

Eastern countries. Tea consumption is stagnant in other developed countries such as USA,

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Canada and Japan. Instant tea market is very small at 3.7mn kg. Major instant tea consumers

are U.S.A. and West Europe and major exporters are India and Kenya.

Commodity prices and outlook:-

Although, land is the limiting factor for increasing production, no tea shortage is likely in the

foreseeable future. The global demand growth at 2% p.a. will be easily met by rising

production from Kenya, Sri Lanka, Malawi, Indonesia and other countries. These countries

are foreign exchange starved and tea is a vital part of the economy. Their tea industry is

entirely export oriented. These countries lead a price cut if there is a surplus. On the other

hand, rising domestic demand in India and China will restrict their exportable surplus.

Pakistan is likely to emerge as one of the largest importers.

Weather changes from month to month. There have been occasions when shortfall of ten

months has been more than met in the last two months. Bad weather in some of the major

producing countries can lead to a significant price rise. However, that will be temporary.

Unlike coffee, (where Brazil is the dominant producer) tea production and exports are more

wide spread, reducing the possibility of wide swings in the prices as have been experienced in

the coffee trade.

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NATIONSTATE

Assam Tea

COLOR

Darjeeling Tea

Pu-erh Tea White Tea

Red Tea/Rooibus Tea

Green Tea

Type of tea

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There are various types of tea. Tea can be described on the following basis. These teas are

further explained below in each category.

A) STATE

B) NATION

C) COLOR

EXPLAINATION:-

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Nil iri TeaBubble Tea

Oolong Tea

Scented Tea

Black Tea

Or anic Tea

Packed Tea

Instant Tea

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A) STATE:-

State wise tea can be classified into main two parts and one more in the south India are very

popular tea.

1. ASSAM TEA:-

Assam is a major growing area covering the Brahmaputra valley, stretching from the

Himalayas down to the Bay of Bengal. There are 655 estates covering some 168,000

hectares. Assam tea has distinctive flecked brown and gold leaves known as "orange" when

dried. In flavor it is robust, bright with a smooth, malt pungency and is perfect as the first cup

of tea of the day. Such teas are used in everyday popular blends because of the full-bodied

richness. There is also an Assam Green tea with unusual light, almost sweet liquor.

First flush Assam

Assam tea bushes start growing in March and the first flush is picked for 8 to 10 weeks, first

flush Assams e.g. Bamonpookri, an excellent quality tea with a strong fresh flavor; are rarely

marketed in the Europe, unlike first flush Darjeeling.

Second flush Assam

The plucking of the second flush begins in June with most of the production taking place

from July to September. The second flush Assam is the best of the season and when brewed

give a rich aroma, a clear dark read liquor and a strong malt taste. Good examples of second

flush of Assams are, Napuk, displaying all the qualities of a well made Assam and Thowra,

which has strong spicy liquor and lots of body.

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2. DARJEELING TEA:-

Regarded as the "Champagne of Teas," Darjeeling is grown on 100 estates on the foothills of

the Himalayas, on over 18,000 hectares at about 7000 ft. Light and delicate in flavor and

aroma, and with undertones of muscatel, Darjeeling is an ideal complement to dinner or

afternoon tea. The first "flushes" (pluckiness) are thought to produce the best Darjeeling

vintage but all crops are of very high quality. Darjeeling Green is rare tea similar to Japanese

Sencha with an exquisite aroma and delicate taste.

First flush Darjeeling:-

The Darjeeling bushes' first new shoots - the first flush - are picked in April. These first teas

of the season are the finest and are much in demand, fetching incredibly high prices at

auction. Castleton First Flush has a perfect green-brown leaf and is from one of the most

prestigious gardens in the area. It gives an exquisite perfume and taste of green muscatel.

Bloomfield First Flush is again from a recognized garden and its subtle astringent flavour is

typical of Darjeeling first flush.

Second flush Darjeeling:-

Second flush Darjeelings are picked between May and June and produce excellent quality

teas that are considered by some to be better than the first flush as they have a fruitier, less

astringent flavor than the earlier teas. The leaves are darker brown and contain plenty of

silvery tips. Again good examples of second flush Darjeelings are, Putt bong, which is one

of the better second flush Darjeelings available, with a discernible muscatel flavor and

Namring, a fruity balanced taste perfect for afternoon tea.

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3. NILGIRI TEA:-

The Nilgiri region, situated in southern India, forms a high hilly plateau at the conjunction of

the Eastern and Western Ghat mountains. More than 20,000 smallholders grow and pluck tea

with some 37,000 hectares under cultivation. Most Nilgiri teas are used for blending, but

there is a rapidly growing demand for the specialty tea of the area. Nilgiri has a bright amber

color and a refreshing, bright and delicate taste. Nunsch is a typical Nilgiri tea, large-leafed,

which gives a fruity, bright and flavorful brew.

B) NATION:-

There are basically three types of tea which are more common in the world with different

names but they are specially produce or grown in particular region. They are as follow:

1. Pu-erh Tea:-

Pu-erh teas come from the Yunnan province in China and have a strong earthy flavor. Pu-erh

has been praised for generations for its flavor and health benefits. It's processed according to

an ancient technique (which used to be a state secret) that involves aging the leaves. It is

often formed into bricks and is one of the few teas that age well.

Pu-erh tea is moderate in taste, not as strong as black tea. It can cut grease, help digestion,

warm stomach, help produce saliva and slake thirst, dispel the effects of alcohol and refresh

ones mind. Pu-erh tea has functions of lowering the triglyceride, cholesterol, hyperuricemia

in the body.

Pu-er tea (also called Pu-er or Pu-erh) is an ancient and rare tea, much loved in China and the

only tea for some 'hardened' tea drinkers. The processes that go into making the classic puers

are closely guarded secrets. It is fermented, sometimes twice, and is often pressed into cakes

or bricks. This makes Pu-er especially easy to store and keep for long periods. Generally they

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are robust, earthy teas with a dark red or brown color and distinctive, mysterious aroma. Puer

is widely known in China to have major health benefits, especially in reducing cholesterol

and as an aid to digestion, which makes it the ideal after dinner tea.

2. RED TEA OR ROOIBOS:-

Growing on the slopes of the beautiful Cedarberg Mountains in the Western Cape of South

Africa, Rooibos is a natural herb that can be found only in this region, and very much

resembles a cedar bush in that it has fine needle-like leaves. Well known to the

indigenous Khoisan tribe, it has been used for a wide range of illnesses for centuries and has

literally exploded onto the tea market of today. Rooibos is a member of the Aspalathus plant

group, which is part of the legume family. It is a shrub-like bush with a central, smooth-

barked main stem, known to the locals as "red bush." Near the soil surface the stem

subdivides into a number of strong offshoots, followed by delicate side branches each

bearing, singly or in clusters, soft, needle-like leaves.

History of Rooibos:-

At the turn of the last century, local people harvested Rooibos by chopping the plants

with axes and bruising the leaves them with hammers, and then leaving them to

ferment in heaps where they dried in the hot sun.

In 1904, Benjamin Ginsberg, a Russian immigrant and pioneer whose family was

involved in the tea industry, began trading and selling Rooibos.

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In 1930, a Dr. P. Le Fras Nortier discovered the value of this plant as an agricultural

product. He inspired other farmers and cultivation began.

When the Rooibos market collapsed after the Second World War, the Clan William

Tea Cooperative was established in 1948 followed by the appointment of the Rooibos

Tea Control Board in 1954. The goals of the board were to regulate marketing,

stabilize prices, and improve and standardize the quality of the tea. This has been well

accomplished with the refinement of production methods and worldwide distribution.

In 1968 a Dr. Annique Theron became convinced that there were health and healing

properties in this plant, and so conducted independent studies reporting her findings in

a book called "Allergies: An Amazing Discovery". Until then, Rooibos was

considered just a local South African tea with limited export.

In the 1980's, Japanese scientists found a powerful and stable antioxidant called

super-oxide dismutase in Rooibos tea, and in 1992, Dr. Theron brought the story of

her amazing discovery to America.

In 1993 the industry was privatized allowing all growers to market the product on

their own.

An independent scientific study was undertaken in 1995 by Professor Daneel

Ferreira, Dr. Charlene Marais, Dr. Jacobus A. Steenkamp and Dr. Elizabeth

Joubert, which confirmed Rooibo, has many health benefits.

In 1997 at the International Inventions Exhibition in Geneva, Dr. Theron was honored

with the "World Intellectual Property Organizations" award for The Best Woman

Inventor of 1997.

Recent scientific research has added to the credibility of Dr. Theron's original findings

regarding the health and healing properties of tea. The most recent studies suggest a

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beneficial link between tea consumption and cardiovascular health, reduced risk of

certain types of cancer, and an increase in bone density.

Production of Red Tea:-

Rooibos is grown in an area with winter rainfall, so that its active growth can begin

in the spring and increase during the summer. It is covered with small, yellow, pea-

shaped flowers during October, each of which produce a small legume containing one

small, light yellow, hard-shelled, dicotyledonous seed. Seedlings are transplanted

between June and August, and the first crops reach maturity about 18 months

later. During harvesting, each bush is cut back to 35cm above the ground. After 3 to 5

harvests, plantations have to be re-established.

The harvested cuttings are tied into sheaves and taken to the processing yard; here

they are trimmed to a standard length and moistened to start the fermentation process.

The leaves change from green to the distinctive red-amber color and develop their

sweet aroma.

They are then bruised between rollers, and spread out on racks to dry in the sun.

Health Benefits:-

Contains antioxidants which limit the effects of free-radicals in the process of aging

and a declining immune system.

Helps prevent common infant ailments like colic and stomach cramps.

Completely pure, natural and contains no additives, preservatives or colorants.

Contains no caffeine and has a soothing effect on the central nervous system.

Have anti-spasmodic properties that help to relieve stomach and digestive problems

like nausea, vomiting, constipation, heartburn and stomach ulcers.

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Benefits the management of allergies like hay fever, asthma.

Has a soothing effect when applied directly to the skin as a tincture or can relieve

itching, rashes and sunburn when added to a bath.

Supplements the daily amounts of calcium, manganese and especially fluoride,

needed for the development of strong teeth and bones.

Contains zinc and alpha hydroxy acid, which promote healthy skin, and magnesium,

which is necessary for a healthy nervous system.

Low in tannin, a substance which affects the body's metabolism by interfering with its

ability to absorb iron and protein.

An ideal drink for anyone who is watching their weight because it contains no calories, it is

less bitter than regular tea and therefore needs no sweeteners and it is naturally calming.

Strongly recommended for people suffering with irritability, headaches, disturbed sleeping

patterns, insomnia, nervous tension, mild depression or hypertension, as it contains no

caffeine and has a soothing effect on the central nervous system.

Contains iron, potassium and copper - minerals which are essential for several

metabolic functions.

Contains magnesium - necessary for a healthy nervous system.

Contains no oxalic acid, so it can be drunk freely by people suffering with kidney

stones.

It is a pick-me-up in the morning, an excellent thirst-quencher during the day and at

night it helps you to relax and sleep well.

3. BUBBLE TEA:-

Bubble Tea is one of the newest trends in the tea market today. It originated at tea stands in

Taiwan in the 1980s, and has many other names - booboo tea, boba tea, tapioca tea, boba nai

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cha, pearl tea, pearl shake, tapioca ball drink, black pearl tea, milk tea, bubble drink, zhen zhu

nai cha, momi, momi milk tea and QQ. QQ means "chewy" in Chinese, referring to the

texture of the tapioca pearls which is the feature of this unusual drink. At first, the tea did not

contain tapioca, but was so called because of the bubbles formed after the shaking given to

mix the tea and flavoring.

Tapioca pearls are made mostly from tapioca starch, which consists of the tapioca or bitter-

cassava plant, sometimes called manioca or yuca. The plant is native to South America and

being brought to Asia in the 19th century. In 1983, a man called Liu Han-Chieh began adding

the tapioca pearls, mostly to cold infused tea. After the tea and flavor were shaken, the

tapioca rose to the top, emulating bubbles. They would then would sink back to the bottom,

so the idea of using a large diameter straw to reach them was born. It can also be made with

fresh fruits, milk, and crushed ice to create a healthy milk shake. It is certainly an acquired

taste; the consistency of the small marble sized tapioca pearls sits somewhere between jell-o

and chewing gum.... Depending on the ingredients of the pearl, the color varies, but the color

most often seen is black. Bubble tea is sweet, though it has less sugar than a typical soft

drink, and can include a variety of flavorings colors.

C) COLOR:-

In this category there are many types of tea comes. All these teas are basically related with

the color of the tea and fall under various name.

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1. WHITE TEA:-

White tea is similar to green tea, in that it's undergone very little processing and no

fermentation. But there is a noticeable difference in taste. Most green teas have a distinctive

'grassy' taste to them, but white tea does not. The flavor is described as light, and sweet. You

should steep white tea in water that is below the boiling point.

There is also considerably less caffeine in white tea than the other varieties (15mg per

serving, compared to 40mg for black tea, and 20mg for green). Some studies have also shown

that white tea contains more active cancer-fighting antioxidants than green tea.

As with all teas, there are many varieties of white tea, with poetic names such as: white

peony, golden moon, silver needle and white cloud. White teas are produced mostly in China

and Japan, but the Darjeeling region of India also produces some fine white teas.

2. GREEN TEA:-

Green tea is nothing more than the leaves of the camellia sinensis that have been processed a

certain way. Green teas, like white teas, are closer to tasting like fresh leaves or grass than the

black or oolong. They are also lower in caffeine and have higher antioxidant properties.

Preparation:-

First, the green leaves are seen how much oxidation should take place before drying them

out. Tea leaves have enzymes in their veins. When the leaf is broken, bruised, or crushed, the

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enzymes are exposed to oxygen resulting in oxidation. The amount of oxidation depends

upon how much of the enzymes are exposed.

Processing of Green Tea:-

The processing of green tea is similar to that of white tea in that it does not oxidize. After the

leaves are plucked, they are (sometimes) laid out to wither for about 8 to 24 hours. This lets

most of the water evaporate. Then, in order to neutralize the enzymes thus preventing

oxidation, the leaves are steamed or pan fried. Next the leaves are rolled up in various ways

and tightness. After that, a final drying takes place. Since no oxidation took place, the tea has

more of a green appearance. From there, it goes off to be sorted, graded, and packaged.

3. OOLONG TEA:-

Oolong teas are the most difficult of the four types of teas to process. The best way to

describe oolong tea is that they are somewhere in between green and black tea. This is

because they are only partially oxidized during the processing.

Oolong tea is gently rolled after picking allowing the essential oils to react with the air and

slowly oxidize. This process turns the leaf darker with time and produces distinctive

fragrances. When the leaf has reached the desired oxidation the leaf is heated, in a process

called 'panning', to stop the process. It's then rolled to form the tea into its final shape. The

resulting tea can be anywhere between a green and a black, depending on the processing

method. This tea is handcrafted, undergoing a labor intensive process. The tea maker must

carefully balance many elements in the critical few hours after the leaf is picked including

weather conditions, quality of the leaf, and the time the leaf oxidizes. The finest Oolongs are

often prepared and enjoyed Gung Fu style to savor their complex tastes and fragrances.

Processing: -

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The processing of oolong tea requires only a partial oxidation of the leaves. After the leaves

are plucked, they are laid out to wither for about 8 to 24 hours. This lets most of the water

evaporate. Then the leaves are tossed in baskets in order to bruise the edges of the leaves.

This bruising only causes the leaves to partially oxidize because only a portion of the

enzymes are exposed to air. Next, the leaves steamed in order to neutralize the enzymes and

stop any oxidation. Oolong tea can have varying degrees of oxidation. Some are closer to

black teas, and some are closer to green.

4. BLACK TEA:-

Black teas are the most consumed of the four types of teas. They are the highest in caffeine.

Black tea is the most popular tea in the world. It is the tea most widely used in making iced

tea and English tea. Since the process of making black tea consists of three main stages, cut,

torn and curled, it is also known as C.T.C tea. After cutting, the leaves are first spread on

shelves called withering racks. Air is blown over the leaves to remove excess

moisture, leaving them soft and flexible. These withered leaves are then crushed between the

rollers of a machine to release their flavored juices. In the tearing process the cells of the

leaves are exposed and the oxidation process begins. They are then taken to the fermenting

room where under controlled temperature and humidity, they change into copper color.

Finally they are dried in ovens, where they are curled by heat and become brownish black.

It is made by steaming the leaves in large vats. The steaming prevents the leaves from

changing its green color, hence the name. The leaves are then crushed in a machine and dried

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in ovens. It is produced by using many of the same techniques that were practiced centuries

ago.

Black teas are of two types i.e.CTC and Orthodox Tea

EXPLAINATION:-

Green tea leaf is converted into black tea through two processes which produce orthodox tea

and CTC (crush tear and curl) tea. In the production of orthodox tea the tea leaves are twisted

and rolled to produce a stylish product which contains a high percentage of leaf. This tea

produces lesser cups, but the prepared tea has higher aroma and lighter colour. In CTC tea

production the leaves are crushed and torn before curling which results in the production of

smaller size tea with higher dust content. This tea has poor aroma but stronger colour and

taste and yields more number of cups.

At present 88 per cent of the tea produced in India is of CTC variety and only 12 per cent

orthodox. The CTC tea has a strong color and strong taste while CTC tea is thin liquoring but

has strong flavor. From 1 kg CTC tea about 500 cups of tea can be made but from orthodox

tea only 250 cups are possible. In India, CTC tea has become more popular because of higher

cup page. In Kerala, where per capita tea consumption is 1.2 kg per person per year, against

an all-India average of 640 grams, the consumption ratio of CTC: Orthodox tea is 76:24.

5. SCENTED TEA:-

Scented or Flower tea is either green or white tea that has been infused with certain flowers,

which impart a delicate and interesting taste, and of course a wonderful aroma. As with black

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tea and milk or sugar, flowers were added to green tea originally to disguise a less than

favorable taste in the poorer varieties. This is still the case with many commercially produced

flower teas, which hide the taste of very cheap tea behind a strong flowery presence. Flower

teas, in particular the delicious jasmine, have gained such a following both in Asia and the

Western world, that many people only drink this variety. The Seven Cups jasmine teas

combine really fine quality green and white teas with a subtle but distinct jasmine flavor, and

are a real treat, especially for dedicated jasmine fans. They are the best jasmine teas we've

ever tasted.

6. ORGANIC TEA:-

In recent years, some planters in Darjeeling have started growing organic tea. At the end of

1997, there were 11 gardens here which produced 1.5 million kg organic tea. At present more

planters are interested in going for organic tea cultivation but there is a shortage of farmyard

manure or bio-mass. About 10 tones of bio-mass is required for every hectare of plantation

every year to produce organic tea. Though the yield in initial years falls it picks up and

stabilizes in 2 to 3 years.

The cultivation of organic tea can be taken up in regions like Darjeeling only. In Assam and

Dooars, the tea crop is often attacked by 'Helo Peltis', more commonly known as 'tea

mosquito'. Till now, no biocide has been developed which can combat tea mosquito. The

gardens in Darjeeling are not attacked by tea mosquito as it cannot survive in the colder

climates found at heights of 3,000 ft and above. In 1998, the Harrod's of London, one of the

world's most exclusive stores launched the sales of Indian 'organic tea'.

Harrod's has signed contracts with India's 4 best tea gardens Slimbong in Darjeeling,

Ambootia in Kurseong, Seeyok in Mirik and Banspatty in Karbi Anglong in Assam for

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supply of tea. The teas were approved after rigourous inspections and tests conducted by

Swiss based Institute of Marketecologie. Indian Organic Chemicals Ltd. Mumbai is

producing biofertilisers and biopesticides like Bactin, Phosphin, Natrin and Naemin which

are used by farmers cultivating organic tea and other crops.

7. INSTANT TEA:-

Indian producers of instant tea have failed to create any market for this product in India. At

present, instant tea is being used in soft drinks in some western countries and is consumed to

some extent in the South Asia Pacific Rim region. In India it is being produced by Tata Tea at

Munnar in Kerala, Nestle in Gudalur in Tamil Nadu, Hindustan Lever at Etah in Uttar

Pradesh and by Goodricke Group at Dooars in West Bengal. Tata Tea has a capacity of 2.27

million kg per annum. The other 2 companies having large capacity in the world are Lipton

and Tetley. The production of instant tea bagan in the world in 1962. Its commercial exports

started in 1967 to the US markets.

In late 1997, Tata Tea had captured 15-18 per cent of the US instant tea market. Snapple and

Coco-Cola, two beverage companies in the US were major users of Tatas instant tea in their

iced tea beverage. The company also exports instant tea to Europe, Japan and to a lesser

extent to Australia. At present there are only 12 factories in the world which manufacture

instant tea. Of these 5 are located in India alone (Tata, Nestle, Tetley, Lipton and Goodricke).

In the US iced tea is marketed in some 52 flavor and competes directly with cola. While the

market for iced tea is growing at 8-10 per cent that for cola is growing at the rate of only 1-2

per cent in the US. The world market for instant tea is estimated at 30 million lb of which, the

US alone accounts for 20 million and the Europe 4 million.

8. PACKED TEA:-

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In 1998-99 budgets, an excise duty of 8 per cent was levied on packet tea containing more

than 100 gm but less than 20 kg of tea. The consumption of packet tea in India was stagnant

for a number of years but since 1986 it started going up at the rate of about 7.2 per cent per

annum compared to 2.1 per cent of the loose tea. Tea is consumed in more than 50 per cent of

the households in India and 47 per cent of the households even in rural areas consume packet

tea. Even on the exports front, now 50 per cent of the tea exported from India is packet tea.

In 1985, the various brands of Lipton and Brooke Bond were enjoying 90 per cent share in

the packet tea market in India. Today their share has fallen to 40 percent. Tata Tea has a share

of 20 per cent and the rest is held by tea produced by AVT, Duncans, Society, and local

brands etc. Of the 640 million kg tea consumed in the domestic market, about 280 million kg

is packet tea and 360 million kg loose tea.

In packet tea Hindustan Lever has captured a market for 110 million kg., Tata Tea 50 million

kg, Duncans 20 million kg, Girnar 13 milliom kg, Wagh Bakri 13 million kg, Goodricke 10

million kg, Jaishree 7 million kg and the rest others.

According to the findings of an Indian Readership Survey, 45.3 per cent of households with a

monthly income of Rs. 3,001 or less and 69.4 per cent of households with a monthly income

between Rs. 3,001 to Rs. 5,000 per month consume packet tea. More than 46.3 per cent of the

rural households also consume packet tea. In 1997-98, the sales of packet tea in India rose

by 4 per cent in volume and 7-8 per cent in value. The volume growth in loose tea was 2.5

per cent.

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With the imposition of 8 per cent excise duty on branded tea in 1998-99, according to the

industry, the growth in sales for packet tea was likely to be negligible. In the 1999-2000

budgets, the 8 per cent excise duty on tea packets of 101 gm to 20 kg was abolished and a

duty of Rs. 2 per kg of bulk tea coming out from the factories was imposed.

Tata Tea has plans to increase its market share in the domestic packet tea market. The

company has launched several new tea brands in the market including 'Agni', Tata Tea',

'Chakra Gold', 'Kannan Devan', etc. In early 1999, the company had put more brands like

'Good Luck', 'Lucky Cup Tea', etc in the market.

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Major Market Player in Tea Industry

Tea has an enormous market. The world consumes approximately 3.5 billion cups of tea

daily. At an average of two cups a day per consumer, that is 1.75 billion consumers per day.

It is unlikely that any other beverage, other than water, is consumed to such an extent all

over the world.

The packaged tea market is highly consolidated in India, with Unilever and Tata Tea

accounting for almost half of retail value sales. Unilever (Brooke Bond and Lipton) is the

clear leader, holding over 30% of the market share, while Tata Tea (Tata) trails it with almost

20%. The remainder of the market is far more fragmented and shared between numerous

small players

Both Unilever and Tata Tea saw a fall in retail sales as a direct result of the drop in the price

of tea between 2000 and 2003. These mainstream players also saw their margin squeezed in

the face of increased advertising spends and competition from unpackaged tea.

Of the total Indian tea market, 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 the No. 2 with around 17-18% market share. Apart from these two players

and Duncans, the market is extremely fragmented with many smaller /regional players. There

is other market player who gave tough competition to the leading player. Though other

players are not very popular they have their limited market for their product. Some brand has

regional market for their product and gain profit out of it. The main market leaders are TATA

TEA LTD and HLL subsidies Unilever which has dominate the tea market

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Following are the some important market player in tea industry. They areas follow:

Assam Tea Company

TATA TEA LTD

Tetley Tea

HLL (Hindustan Lever Ltd) Unilever

Brook Bond Tea

Goodricke Group Ltd

Sapat Group

EXPLINATION:-

Assam Tea Company:-

The Assam Tea Company is the first tea company in India established 150 years ago . A

part of the UK based Duncan MacNeill Group; ASSA owns 28 tea estates in the North

Eastern part of the country. Besides bulk tea, the company sells packed tea under brands like

Regular, Jumbo, Premium and tea bags under the umbrella Assam Gold. The company also

has a large export market in Europe and is looking at expanding its presence in other

countries.

TATA TEA LTD:-

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Tata tea ltd set up in 1964 as a joint venture with UK-based James Finlay and Company to

develop valued-added tea, the Tata Tea Group of Companies, which includes Tata Tea and

the UK-based Tetley Group, today represent the world's second largest global branded tea

operation with product and brand presence in 40 countries. Among India's first multinational

companies, the operations of Tata Tea and its subsidiaries focus on branded product offerings

in tea but with a significant presence in plantation activity in India and Sri Lanka.

The consolidated worldwide branded tea business of the Tata Tea Group contributes to

around 86 per cent of its consolidated turnover with the remaining 14 per cent coming from

bulk tea, coffee, and investment income. The company has its headquarters in Kolkata, and

51 tea estates in the states of Assam, West Bengal, Tamil Nadu and Kerala and one coffee

estate in Tamil Nadu.

Products and brands:-

The company has five major brands in the Indian market Tata Tea, Tetley, Kanan Devan,

Chakra Gold and Gemini catering to all major consumer segments for tea. The Tata Tea

brand leads market share in terms of value and volume in India and has been accorded "Super

Brand" recognition in the country. Tata Tea's distribution network in the country with 38

C&F agents and 2,350 stockiest caters to over 1.7 million retail outlet in India.

The company has a 100 per cent export-oriented unit (KOSHER & HACCP certified)

manufacturing instant tea in Munnar, Kerala, which is the largest such facility outside the

United States. The unit's product is made from a unique process, developed in-house, of

extraction from tea leaves, giving it a distinctive liquoring and taste profile. Instant tea is used

for light density 100 per cent teas, iced tea mixes and in the preparation of ready-to-drink

(RTD) beverages.

With an area of 26,500 hectares under tea cultivation, Tata Tea produces around 60 million

kg of black tea annually.

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Exports:-

Tata Teas export volumes have risen through these years but realizations are at lower side.

There has been growth in exports of Sri Lankan high value teas in traditional Indian market.

This provides us an opportunity to recapture market share through quality up gradation

particularly from South India. South Indian teas are very similar to Sri Lankan teas.

Marketing Initiatives:-

Tata Teas top brand commands market share of 7.4%, whereas HLLs top brand

market share is 6.9%.

Agni brand from Tata Tea stable launched two years ago has garnered a market

share of 3.5%.

Tetley Group Ltd:-

It is Subsidiary of Tata Tea Limited.

A global player in tea: the world's Number 2 tea bag company, with a presence in

over 35 countries worldwide.

Market leader in United Kingdom and Canada, a vibrant player in other major tea

markets such as USA, Australia, Poland and France.

Pioneer in the tea industry, with an enviable record of developing some of the most

innovative concepts in the world of tea: soft packaging, perforated tea bags, round tea

bags and the Drawstring tea bags.

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Unmatched global tea buying and blending skills: among the most respected name in

the industry for its expertise in buying and blending, with nearly 100 years of

experience between senior tea tasters.

Unmatched global tea buying and blending skills: among the most respected name in

the industry for its expertise in buying and blending, with nearly 100 years of

experience between senior tea tasters.

HLL (Hindustan Lever Ltd) Unilever:-

Hindustan Lever Limited, 51.6% subsidiary of Unilever Plc, is the largest FMCG company

in the country, with a turnover of Rs118bn. The companys business sprawls from personal

and household care products to foods, beverages and specialty chemicals. The company has a

dominating market share in most categories that it operates in such as toilet soaps, detergents,

skincare, hair care, color cosmetics, etc. It is also the leading player in food products such as

packaged tea, coffee, ice cream and other culinary products.

HLL enters in Japan with tea bags. Its fast moving consumer goods major, has added Japan

as its new market for tea exports and some orders have already been dispatched. HLL has

also added to its customer base the US, Australia, China, Hong Kong, the Philippines,

Singapore, Vietnam and Thailand markets. HLL established a dedicated global sourcing base

comprising factories at Pune, Kochi, Etah and Kolkata. The brands exported are Lipton,

Lipton Yellow Label, Lipton Brisk, Brooke Bond, Brooke Bond Red Label, and Taj Mahal.

All of them are in the tea bag format, apart from the West Asia business where the format is

packet tea.In addition, HLL also exports instant Tea and Lipton 3-in-1 pre-mix (tea, milk and

sugar) to some of these countries.

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Brook Bond Tea:-

Brooke Bond cheers senses. Brooke Bond's heritage dates back to 1869. With its 130-year

experience in understanding tea and Indian consumers, Brooke Bond has been synonymous

with tea in India.

At Rs.1000 crores, Brooke Bond will emerge as the largest brand of Unilever in India, It will

touch the homes and hearth of over 500 million consumers -- one of every two Indians -- with

the largest footprint in the country.

Brooke Bond's logo shows green tea gardens transforming to the red liquor of tea, and a

multi-colored sun that stands for specific moments of tea consumption.

Brooke Bond Red Label Tea was launched in the year 1903, which makes it one of the oldest

brands of tea in the country. It also has the distinction of being the largest brand of tea in

India and has a truly national presence. For years, Red Label has stood for good quality tea

and it can be easily called as one of India's favorite tea brands.

The brand was re-launched in the year 2000 with a new product formulation, wherein long

Assam orthodox tea leaves were added to the base CTC (crush tear and curl) tea to deliver

enhanced taste.

The brand is backed by the Brooke Bond Tea Excellence Centre. Selecting the best teas from

the best gardens, Brooke Bonds specialists work hard to scientifically process green leaf to

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cheer consumers. In the unique Tea Excellence Centre of Brooke Bond, tea is expertly

graded, blended and tasted to get the perfect blend.

Goodricke Group Ltd:-

Goodricke Group Ltd (GGL) is a part of the UK-based Lawrie Group. GGL has a joint

venture tea company in Nepal named Himalaya Goodricke and a subsidiary, Tiru Tea. The

Goodricke Group is the leading producer of Darjeeling Tea and the third largest tea producer

in the country. The company manages 36 tea gardens spread all over India. Incorporating the

highest technological standards in its production of tea, the company is a symbol of

excellence giving a perfect blend of quality and care in every cup of tea. Today, with

worldwide acclaim, Goodricke group manufactures and markets a wide range of tea.

Primarily a seller in the auction market, Goodricke now has an equal proportion of sales in

the bulk and packet tea segments, besides a significant presence in the export market.

Tea major Goodricke Group Ltd, which is part of the UK-based Camellia Plc, has begun re-

launching all its packet tea brands. It also plans a new, exclusive brand for south India. To

start with, the company recently re-launched Goodricke Perfect packet teas across India. This

is a blend of 40 per cent Darjeeling and 60 per cent Assam CTC (crush tear and curl) teas.

Goodricke 3-in-1 would follow next and, later, the Zabardast brand. While Goodricke 3-in-1

is the main brand, Zabardast targets the mass segment. The company also had a soft launch

for Goodricke Premium late last year in Gujarat. This brand would soon be launched all over

India. Goodricke, which is mostly a bulk tea player, has been in the packet tea business for

over 17 years now. However, most of its packet tea sales are in the country's northern half. It

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enjoys good market share in Madhya Pradesh, Punjab, Haryana, West Bengal, Rajasthan,

Jharkhand and Uttar Pradesh. Goodricke's presence in south India, which is predominantly a

branded packet tea sector, is almost negligible.

Goodricke owns 10 gardens in Assam, 12 in Dooars and eight in Darjeeling. Its annual

production is 30 million kg. The company's instant tea plant, located in North Bengal, caters

to clients like Coca-Cola Ltd and Hindustan Lever Ltd. According to Grover, Goodricke's

packet tea business was growing 25-30 per cent per annum. In 2004, it sold six million kg

and expects to touch eight million kg in 2005. In the tea bag segment, the company sells

Assam CTC (crush tear and curl) under the Goodricke Fine Estate brand, mostly to

institutions such as the Indian Railways.

Sapat Group:-

The Sapat Group of companies founded in 1897, consists of diversified businesses in tea,

pharmaceuticals, real estate to Information Technology. The group has a strong presence in

India, as well as in North America. The various Indian manufacturing units are located in and

around Nashik, with its marketing office and IT facilities located at Mumbai. With innovation

strategies over the last decade the company has grown five times touching a turnover of

almost Rs100cr., making it the largest packet tea company in the Rs500cr tea market of

Maharashtra. Currently, Sapat has over 250 distributors in Maharashtra and plans to expand

to other tea drinking states.

The tea division which is the largest of the FMCG operations was based at Nasik and a very

strong regional brand with a very good franchisee. They started with the expansion on tea and

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that is being an area that they already had capabilities in. Sapat Tea is one of the top 10

companies in India today. Their Tea turnover is little more than Rs100cr. Last year,

according to some reports they were the fastest growing packet tea company in India. They

have presence in Maharashtra, large parts of MP, Chattisgarh and now we are setting up

distribution in top cities. They dont have their own plantations. They buy the teas from

Assam.

Parivar is the largest brand. Within Maharashtra in the leaf category the market share should

be somewhere between 20-25%. And in the Dust tea category they have Sapat Chaha / Sapat

Chai a popular dust. Dust tea is a very regional play, because the market and test varies from

district to district. So in the districts in which it is very popular; its almost 80% market share

kind of a product. Maharashtra is the largest Dust Tea market in the country. They will have

other brands as well but starting off with the focus on Parivar because there is still lot of

potential in that brand. They do have Sapat Chai under Sapat brand but it is limited to the

dust category. They plan to use Sapat more as an umbrella brand going forward. Parivar will

be about 60% of the total turnover of Rs100cr.

Export is a very small but a growing part of their turnover. A few years ago they were able to

start off with Masala Chai and they have been able to rope in the second largest distributor in

the US to carry out product. Tea Prices at the commodity level will be stable and are expected

to by and large remain low. They have some flavored teas, mostly in the export markets.

They are looking at that for the Indian market as well now. There is demand for it especially

at the higher end.

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Consumer Behavior

The consumer is a riddle. His needs and desires are innumerable; and they vary from security

needs to aesthetic needs. These needs and desires are at different stages of emergence and

actualization. The consumer has his own ways and means of meetings these needs. Some of

these needs are within his means; he can easily meet them. Some others may be beyond

realization.

The consumer is exposed to a word of information- about new product, new services, and

new uses for existing product, new ideas and new styles. He may ignore certain pieces of

information, whereas he may actively seek out some other information. He may read certain

messages but may not digest them. In other word, he filters the information in a rather

unconscious manner. His perception is selective in the sense that he perceive and retains only

what he would normally like to perceive and retain.

When a consumer takes a buying decision, there is no rigid rule to bind him, Sometimes; the

decision is taken on the spot. That does not necessarily mean that it is an irrational decision.

Sometime he may after a long search, after evaluating various alternatives available and

reassuring him with the opinion on those who have already purchased the product. Still he

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may feel later his purchase was impulsive. He may go to shop after having taken the decision

to buy a product; but he may not still buy.

The consumer is also influenced by the social environment in which he lives- his family, his

society, his neighbors, his friends, his job, and his colleagues. Every component of his social

environment leaves some imprint on him and influences him in his day to day life. They

influence his buying behavior too.

Factor influencing consumer behavior:-

1. Information from a variety of sources.

2. Socio- cultural Environment/ Group Influence Affecting Consumer Behavior.

3. Religion and language.

4. Concern about states.

EXPLAINATION:-

1. Information from a variety of sources:-

The consumer is exposed to a veritable Flood of information. There is a deluge of

information unleashed on him from different sources. These sources inform him about new

products and services, improved versions of existing products, new uses for existing products

and so on. The information sources that persuade people to try a product include: advertising,

samples and trials, display in shops and salesmens suggestions.

Each of these sources provides some information to the consumer about the products. When

the consumer sees an advertisement for a product, he is informed about the existence about

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the product. Later on he may develop a positive attitude towards the product or negative

attitude or he may remain neutral. In any case a piece of information about the product is

made available to him and it has some influence on his buying behavior.

The availability of the product in the shop by itself acts as an information source to the

consumer. The consumer may evince an interest in the product, he may inquire about it. The

product advertises itself.

2. Socio- cultural Environment/ Group Influence Affecting Consumer Behavior:-

The consumer living in a society, influenced by it and in turn influencing its course of

development. He is a member of several organizations and groups- formal and informal. He

belongs to a family, he works for a certain firm, he may be a member of a professional forum,

he may belong to a particular political group, or a cultural body.

Group influences are of two types, since there are two types of groups exercising influence on

consumer:

(I) Influence of the intimate group, and

(II) Influence of the broad social class.

Explanation:-

(I) Influence of the intimate group:-

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Examples of intimate group are family, friends, close colleagues, and small, closely knit

organizations. These groups exercise a strong influence on the lifestyles and buying patterns

of the members.

In any intimate group, there is likely to be an informal group leader. The group respects him

and look upto him. Though he may no