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  • Analysis on Indian Tea Industry

    Management Research Project 1

    Submitted

    In the partial fulfillment of the Degree of

    Master Business Administration

    Semester III

    Submitted By:

    Khamar Bhaumik Vijaybhai (13044311033)

    Patel Donika Jayeshkumar (13044311067)

    Patel Parth Jitendrabhai (13044311096)

    Patel Twinkaleben Pravinkumar (13044311110)

    Patel Urmi Darsankumar (13044311111)

    Vaishnav Jigar Vasudev (13044311143)

    Under the Guidelines of:

    Prof. Harsha Jariwala

    V.M.Patel Institute of Management.

    Submitted To:

    V.M.Patel Institute of Management.

    Ganpat University,

    Kherva

    December, 2014

  • 1

    CERTIFICATE BY GUIDE

    This is to certify that the contents of this report entitled Analysis on Indian Tea Industry

    by Khamar Bhaumik (33) , Patel Donika (67) , Patel Parth (96) , Patel Twinkale(110) , Patel

    Urmi(111) , Vaishnav Jigar (143) submitted to V.M.Patel Institute of Management for the Award

    of Master of Business Administration (MBA Sem-III) is original research work carried out by

    them under my supervision.

    This report has not been submitted either partly or fully to any other University or Institute for

    award of any degree or diploma.

    Prof. Harsha jariwala V. M. Patel Institute of Management,

    Ganpat University, Kherva

    Date: 15/12/2014 Place:Kherva

  • 2

    CANDIDATES STATEMENT

    We hereby declare that the work incorporated in this report entitled Analysis on Indian Tea

    Industry in partial fulfillment of the requirements for the award of Master of Business

    Administration (Sem-III) is the outcome of original study undertaken by us and it has not been

    submitted earlier to any other University or Institution for the award of any Degree or Diploma.

    Khamar Bhaumik(33)

    Patel Donika (67)

    Patel Parth(96)

    Patel Twinkale(110)

    Patel Urmi(111)

    Vaishnav Jigar(143)

  • 3

    Preface

    This report owns its origin in the requirement of our subject Management Research Project I in

    the semester III of the Masters of Business Management course. In this report we have to make

    analysis of the particular Indian industry. For our report we have chosen Indian Tea Industry .

    This report will help us to know about the different aspects of the Indian tea industry. This report

    includes the introduction of Indian tea industry, the scenario of the Indian tea industry, the role of

    tea industry in national economy, the rivalry among tea industry etc.

    With the help of this report we will also be able to know about the different points of the tea

    industry like History of the industry, Market of the industry, Government policies and

    regulations etc.

    All this research work and study will be done on the bases of secondary data. So we are not

    going for field work and data collection.

    Thus this report will help us to know lots of things about the Indian tea industry and this will be a

    great experience of our life.

  • 4

    Acknowledgement Many people have guided and influenced us in preparing this project. First of all, we are grateful to Prof.

    Harsha jariwala , assistant professor for the MBA program at V. M. Patel Institute of Management for

    giving us an opportunity to experience the analytical way of working and in the process help us in

    learning.

    We are also thankful to all our faculty members who guided us throughout the project. Last but

    not the least, we would like to cite our beloved parents and all our friends for their and

    encouragement, support and blessings. These pages could scarcely have been written without

    their help.

    Submitted By:

    Khamar Bhaumik (033)

    Patel Donika (067)

    Patel Parth (096)

    Patel Twinkale(110)

    Patel Urmi(111)

    Vaishnav Jigar (143)

  • 5

    Executive Summary

    Our project title is Analysis on Indian Tea Industry . The project includes collecting information

    about Indian tea industry. In this report we have also tried to know about the global scenario of

    the tea industry. The idea for this project arises in my mind during the discussion with our guide

    Prof. Harsha jariwala, assistant professor for the MBA program at V. M. Patel Institute of

    Management.

    Our Project includes analysis of export and consumption of Indian Tea. It also considered Five

    Forces analysis, SWOT analysis, and PESTEL analysis to understand the Indian Tea Industry

    deeply. Also Industry financial analysis is done for identifying the financial strength. The

    forecasting is done by the trend analysis method it shows the future trend of the Tea Industry.

    India plays a significant role in world tea trade, being the world's largest producer, consumer and

    exporter. Hence fluctuations in India's tea production, consumption and exports are enough to

    disturb the international tea trade. The India is decreasing in export side at everywhere also in the

    percentage shares in total world export. It is now only around 11.90% which was 18.85% in the

    1991.

    India is the largest tea producing and consuming country in the world and Productivity and

    quality of tea, Labor intensity, Long gestation, Commodity nature of tea, Inconvenient but

    healthy drink, Tea organized industry etc are characteristics for industry.

    In India out of the 757 M.Kgs of tea consumed, around 41% is sold in the form of branded

    products

    The total net foreign exchange Rs. 1,847 crore, highest foreign exchange earning agriculture

    product of India and the global demand growth at around 2 per cent per annum will be easily met

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

  • 6

    The impact of WTO on Indian domestic industry will be negligible because of the re-export

    clause. Tariff reduction is likely to cause higher imports by Pakistan, Iran, Iraq, and Egypt.

    WTO, Tea board of India and the effect of other factors like health, price variability, FAO tea

    mark, Labor problems and also the domestic market consumption is on India Tea Industry.

    Agricultural industry plays a key role in the economies of many developing countries. The prices

    of exports have in the last two decades experienced considerable declines that have negatively

    affected the incomes and well being of producers. The expansion of consumption of tea in all of

    its many forms, black, green, soluble, tea bags, specialty etc, will lend underlying strength to the

    market and eventually benefit producers.

    Quality assurance is of the utmost importance, and ever more so among the health conscious

    consumers of the future and provides a great employment opportunity mainly for the backward

    classes and tribal. To improve the Indian economic position, Government should take

    appropriate steps.

  • No. Sub. No.

    CONTENTS Page No.

    Certificate by the Guide I Candidates Statement II Preface III Acknowledgement V Executive Summery VI Chap 1 INTRODUCTION 1-15 1.1 Introduction of Tea Industry 2 1.2 Global Scenario Of Tea 3 1.3 Indian Scenario 4 1.4 Industry Scenario 8 1.5 Industry Growth 9 1.6 Regional Differences 10 1.7 Consumption In Producing Countries Of Tea 11 1.8 Medium Term Export Strategy By Tea Board 12 1.9 Story Of Tea 14 1.10 Background Of Indian Tea Industry 15 Chap 2 Indian Tea Industry 16-23 2.1 Overview Of Tea Industry 17 2.2 Types Of Tea 19 2.3 The Competitors 23 Chap 3 Major Players In Tea Industry 24-26 Chap 4 Strategic Analysis Or Industrial Analysis 27-45 4.1 SWOT Analysis Of Tea Industry 28 4.2 Porters Five Force Model For Industry Analysis 30 4.3 PESTEL Analysis 38 4.4 BCG Matrix Of Tea Industry 43 4.5 Product Life Cycle 45 Chap 5 Financial Analysis 47-57 5.1 Trend Analysis 48 5.2 Ratio Analysis 57 Chap 6 Business Plan 69 6.1 Mission 70 6.2 Objectives 70 6.3 Key Of Success 70 6.4 Company Ownership 72 6.5 Market Segmentation 75 6.6 Sales Forecast 77

  • 6.7 Personal Plan 78 6.8 Financial Plan 78 6.9 Break Even Point 79 6.10 Projected Profit & Loss 80 6.11 Projected Cash Flow 81 6.12 Projected Balance Sheet 83 6.13 Business Ratios 84 Chap 7 Conclusion 87 Chap 8 Bibliography 89

  • 1

    CHAPTER 1 -

    INTRODUCTION

  • 2

    1.1 Introduction of Tea industry:

    The decade of Nineties has been quite depressing for the tea industry in India. First, it was the

    disintegration of the erstwhile USSR which was solidly a loyal market for the Indian teas. The

    USSR lifted huge volumes. In the mid 90s, when the