tea industry india presentation 17.11.14 final eco
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- 1. TEA INDUSTRY IN INDIA Pooja Kathwadia Chirag Patel Shweta Patel Jay Gadhia
- 2. AGENDA INTRODUCTION HISTORY OF TEA IN INDIA MARKET SCENARIO MARKET BRANDS MARKET SHARE ANALYSIS INDUSTRY FROM ECONOMIC POINT OF VIEW GOVERNMENT POLICIES AND REGULATION BARRIERS GROWTH FORCAST REFERENCE
- 3. INTRODUCTION Tea is one of the most popular and widely consumed hot beverage worldwide. Commonly prepared by pouring hot or boiling water over cured leaves of the tea plant. After water, tea is the most widely consumed beverage in the world. It has a slightly bitter, and astringent flavor that many people enjoy. Tea is consumed in both hot & cold ways
- 4. HISTORY IN TEA IN INDIA More than 30 countries grow tea. Indian Tea Industry is about 172 years old. Tea is the country's primary beverage, with almost 85% of total households in the country consuming tea. Tea Industry has seen a lot of changes in the past few years. Despite its fluctuating position in the world market, India is a key source for tea as well as the largest market.
- 5. MARKET SCENARIO Some of the worlds finest teas are produced in India. India accounting for around 12-13% of world tea exports. Assam teas are famous for their strong, brisk and full bodied liquor. Certain varieties of tea (for example Darjeeling) are grown only in India. All Darjeeling teas possess the lightness of flavour and fine colouring that set them apart from all other teas. Production of the famous Darjeeling tea is aided by the low temperature in the hills of Darjeeling. Indian Tea Industry is one of the largest in the world with over 13,000 garden.
- 6. MARKET BRANDS
- 7. MARKET SHARE ANALYSIS TOP TEN LEADING COMPANISIS IN INDIA Hindustan Unilever. Tata Tea Ltd Ducans Industries Wagh Bakri Ltd Goodricke Group Ltd Hasmukhrai & Co Girnar Food & Beverages P Ltd Sapat Packaging Industries.
- 8. TEA INDUSTRY FROM ECONOMIC POINT OF VIEW The labor cost is the largest cost overhead accounting for about 60% of the total cost of production. Tea production units in India are not just economical units but rather social institutions. It controls the lives of the work force to a large extent. Apart from employment, the plantations are also responsible for providing house, water, welfare and many other facilities to the workers. Their livelihood is directly linked with the prosperity of the tea industry. The industry faced steep decline in prices during 1999 to 2006. This fluctuating trends of pricing are due to agricultural nature of the operations, eg. long gestation periods, dependency on rainfall etc.
- 9. GOVERNMENT POLICIES AND REGULATIONS The additional duty excise of Re. 1 per kg on tea has been withdrawn in the Union Budget for 2005-06. Subsidy for the production of orthodox teas. Assistance to the two tea Research and Development Institutions. A Special Tea Term Loan (STTL) for the tea sector was announced. Implementation of a price sharing formula between small tea growers and manufacturers of tea. Reduction in the import duty on items of machinery used to improve productivity and quality of tea.
- 10. BARRIERS Inadequate Land Different Climatic conditions Unskilled labor Lack of mechanization Lack of infrastructural facilities in terms of power Erratic supply of inputs such as fertilizers, gas etc. No control over price realization
- 11. GOWTH FORECAST According to ASSOCHAM ,the apex industry body the total turnover of the tea industry in India is likely to reach Rs 33,000 crore by 2015 from the current level of about Rs 19,500 crore. Tea industry is growing at a compound annual growth rate (CAGR) of about 15%. Estimate the tea production during the current year is likely to stay over 950 million kilograms as against 966.4 million kilograms in 2010. With rapidly changing market scenario and technological advancement in agri business there is tremendous scope and potential for growth and development of tea industry Health benefit associated with tea is a very significant factor in increasing the demand of tea.
- 12. REFERENCE THE ECONOMIC TIMES (2006), Indias Global Tea Trade, IIM Ahmedabad. www.google.com http://www.tea.in/industry http://en.wikipedia.org/wiki/History_of_tea_in_India
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