Packed Tea Industry

Industry overview :

• Tea isn’t simply tea in India but it is like a staple beverage here and a daywithout it is impossible and incomplete.

• Originally tea is indigenous to the Eastern and Northern parts of India, but thetea industry has expanded and grown tremendously over the years, makingIndia one of the largest grower and producers of tea in the world.

• The tea production in India was 979,000 tonnes as of 2010. In terms ofconsumption and export of tea, India is the second world leader. It accountsfor 26.5% of the global production of tea.

• India has retained its leadership over the tea industry for the last 150 years.The total turnover of this industry is roughly Rs.10, 000 crores.

• Since 1947, the tea production in India has increased by 250%and the land are used for production has increased by 40%.

• Even the export sector of India has experienced an increase inthe export of this commodity. The total net foreign exchange inIndia is roughly Rs.1847 crores per annum.

• The tea industry in India is labor intensive, meaning it dependsheavily on human labor instead of machines. This industryprovides employment to more than 1.1 million Indian workersand almost half the workforce constitutes of women.

• There is a wide variety of tea offered by India; from Green Teato CTC tea to the aromatic Darjeeling tea and the strongAssamese tea, the range of tea available in India is unparalleled.

• Tata Tea

• Tata Tea is the most popular tea brand in India and presently holds the maximum share of tea segment in India. Tata Tea is a tea brand of Tata Global Beverages Limited, a subsidiary of Tata Group, involved in production and distribution of non-alcoholic beverages.which was set up in 1962 as a joint venture of James Finlay and Company and Tata Sons. The company currently operates in all the continents of the world. Its other brands are mentioned below:

• Tetley

• Vitax

• Good Earth

• Jemca

• Brooke Bond Taaza

• Brooke Bond Taaza is a famous and popular tea brand from the British-Dutchconsumer care conglomerate called Unilever. Taaza is the name given to a newtype of tea introduced by the Brooke Bond tea company. The tea leaves of Taazaprovide a unique taste and the much-needed refreshment to the minds of people.

• Brooke Bond Red Label

• Like 'Taaza', Brooke Bond Red Label is also another popular tea brand from Unilever. It has been comforting the taste buds of millions around the world since 1869. It is a special tea processed from the tea leaves procured from Assam. The strong taste and the aroma of Red Label are simply unmatchable.

• Lipton Green Tea

• Lipton Green Tea is a Lipton product. The company was named Thomas J. Lipton Co. at the time of its inception in 1890. Its factory and head offices are in Hoboken, New Jersey, U.S.A. With people across the globe becoming more health conscious, the demand of green tea has gone up manifolds in the recent years. Consequently, Lipton introduced a green tea variant that became an instant hit amongst the green tea lovers.

23%

16%

6%

6%5%

44%

Top Five Tea Consuming Countries

India 23%

china 16%

Russia 6%

UK 6%

Japan 5%

Others 44%

• Tata Tea 19%

• Brooke Bond 18.1%

• Lipton 6.2%

Products :

Its other brands are mentioned below:

• Tetley

• Tata Tea

• Himalayan Water

• Joekels

• Grand

3- Lipton:

Products :

• Lipton Iced Tea

• Lipton Fresh Brew Iced Tea

• Lipton Tea & Honey

• Lipton Iced Tea Mixes

• Lipton Flavored Black Tea

• Lipton Black Tea

• Lipton Herbal Tea

• Lipton White and Red Tea

PORTER’S FIVE FORCES

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Threat of intense

segment rivalry• Taj Mahal

• Red Label Special

• Unbranded TeaThreat of supplier’s

growing bargaining

power• Large number of

producers

• Low switching costs

Threat of buyer’s

growing bargaining

power• Other options

available

• Product differentiation

• Large number of

consumers

Threat of new

entrants• FDI

• Untapped rural

markets

Threat of

substitutable

products• Coffee

• Aerated drinks

• Energy drinks