Tea Report Main

Index Sr no. 1. 2. 3. 4. 5. 5a. 6. 7. 7a. 7b. 7c. 8. 9. 10. 11.

subject

Page No. About Tea 2 History of Tea 3 Heritage of Indian Tea 6 Tea And Our Health 8 An Overview Of An Indian Tea Industry 11 Import And Export of Tea 14 Global Scenario of Tea Industry. 18 Type of Tea 20 According to State 21 According to Nation 23 According to Color 29 Major Market Player in Tea Industry 37 Consumer Behavior 46 Market Research On Consumer Behavior With Respect To 50 Tea Industry Bibliography

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.

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History of TEA 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 wasn’t 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 4

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 midnineteenth 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 heart’s 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. It’s 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. 11

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 world’s 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:India’s 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) North India South India All India

Jan-Apr 2005 Production Exports 94.1 20.2 55.7 32.6 149.8 52.8

Jan-Apr 2004 Production Exports 76.1 23.1 51.2 26.0 127.3 49.1

Source: Indian Tea Association

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% Production 23.7 8.8 17.7

Exports (12.6) 25.4 7.5

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 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 2004-05:Million kgs

YEAR

April-Oct 2004-05

April-Oct 2003-04

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 2005 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 2005. 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.

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Source: World Bank Development Prospects Pinksheet Note: International prices have been converted at an exchange rate of Rs43.66

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 2005. Indian exports in value terms grew by 7.8% yoy to Rs4.6bn during Jan-Apr 2005. 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) North India South India All India

Jan-Apr 05 2,448 2,136 4,585

Source: Indian Tea Association

Imports:16

Jan-Apr 04 2,568 1,684 4,252

Yoy (%) (4.7) 26.9 7.8

During Jan-Mar 2005, tea imports into India increased to 4.56mn kg from 2.91mn kg in JanMar 2004. Vietnam was the major exporter at 1.78mn kg. Tea imports into India:-

Countries Indonesia Nepal Sri Lanka Vietnam Kenya Others Total

Jan-Mar 05 (mn kg) 0.47 0.22 0.05 1.78 0.45 1.59 4.56

(Rs/kg) 58.42 55.55 92.74 36.44 68.95 50.08 45.53

Jan-Mar 04 (mn kg) 0.59 0.73 0.40 0.60 0.57 0.02 2.91

(Rs/kg) 62.88 50.47 97.72 26.88 80.98 N/A 59.39

Inc/Dec (mn kg) (0.12) (0.51) (0.35) 1.18 (0.12) N/A 1.65

Source: Indian Tea Association

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-à-vis the production contribution of 30% and 23% respectively. This is 17

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. 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 2005 (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 18

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, 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.

Type of tea

STATE Assam Tea

NATION Pu-erh Tea 19

COLOR White Tea

Darjeeling Tea

Nilgiri Tea

Red Tea/ Rooibus Tea

Green Tea Oolong Tea

Bubble Tea Black Tea

Scented Tea

Organic Tea

Instant Tea

Packed Tea

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 20

EXPLAINATION:-

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 Assam’s 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

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flush of Assam’s are, Napuk, displaying all the qualities of a well made Assam and Thowra, which has strong spicy liquor and lots of body.

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 Darjeeling’s 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 22

silvery tips. Again good examples of second flush Darjeeling’s are, Putt bong, which is one of the better second flush Darjeeling’s available, with a discernible muscatel flavor and Namring, a fruity balanced taste perfect for afternoon tea.

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 one’s 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 23

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 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, smoothbarked 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. 24

 In 1904, Benjamin Ginsberg, a Russian immigrant and pioneer whose family was involved in the tea industry, began trading and selling Rooibos.  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 Organization’s" award for The Best Woman Inventor of 1997.

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 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 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, peashaped 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. 26

 Have anti-spasmodic properties that help to relieve stomach and digestive problems like nausea, vomiting, constipation, heartburn and stomach ulcers.  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:27

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 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 bittercassava 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:-

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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.

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.

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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 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

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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.

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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 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.

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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 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'.

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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 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 Tata’s 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:34

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: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 38

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 Tea’s 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 Tea’s top brand commands market share of 7.4%, whereas HLL’s 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.  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.

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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.

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 company’s 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. It’s 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 Bond’s specialists work hard to scientifically process green leaf to cheer consumers. In the unique Tea Excellence Centre of Brooke Bond, tea is expertly graded, blended and tasted to get the perfect blend.

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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 relaunching 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 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.

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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 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 don’t have their own plantations. They buy the teas from Assam. 44

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; it’s 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 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.

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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 salesmen’s 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 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.

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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: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 not directly influence every member on his day to day purchases, his judgment on men and matters, facts and fashions are so respected by the group that his views and lifestyle influence their buying decisions. He is normally innovator in the group, who first tries new products and new ideas, and then he became the propagator of those products and ideas.

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(II) Influence of the broad social class:The social Class is a larger group than the intimate group. The constitution of social class is decided by the income, occupation, place of residence, etc., of the individual members. The members of a social group enjoy more or less the same community status and prestige. Each class develops its own standards of lifestyle and behavior patterns. And the members of the class normally select a product or a brand which cater to their group norms. 3. Religion and language:Every culture, religion and language group dictates its own unique patterns of social conduct. Within each religion, there may be a several sects and sub-sects; there may be orthodox groups and cosmopolitan groups. In dress and food habits, education or marriage- in almost all matters of individual life, religion and culture- exercise an influence on the individual directly or indirectly. The do’s and don’ts listed out by religion and culture, control significantly the individual’s lifestyle and buying behavior. 4. Concern about states:People are very much concerned about their image and status in society. It is a direct outcome of their material prosperity. Status is announced through various symbols like dress, ornaments, possessions, and general lifestyle. The value attached to these status symbols may change over a time. A car or a well furnished modern house may be a status symbol in a particular society. But it may not mean to another society or to the same society after a period of time. The desire for a self- expression and self advancement is however the common factor in all the ideas associated with status. For several people, status is a major motive force guiding and shaping their life. Their concept of status decides what material possessions they should have. Even if a product that constitute a status symbol is bound their immediate reach, their aspiration to possess it, will influence the decision making process.

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Market Research on consumer behavior with respect to Tea Industry Market research is normally done by conducting market survey. Survey is done on two bases; i.e. from customer point of view and retailer point of view.

From Customer Point of View:AGE GROUP:-

Age Group

16% 31%

15-25 26-35

20%

36-45 45 & above

33% As per the above pie chart it is said that 33% of people from age group 36-45 are know the most different type of tea available in the market. So any tea company needs to concentrate their marketing strategy to get their customer to know about their tea. They need to develop a good marketing skill so that they can concentrate on other segment also.

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OCCUPATION:-

60

54

50 40 31

30 20 10

10

5

0 Student

Working Woman/man

HouseWife

Business M en

As per the above diagram it is seen that most of the house wife know the various brands of teas even though they are not working. Companies who are want to enter into the tea market they should concentrate on the factor that how can they convert the other segment of occupation to used or to know about the tea. HOW MANY PEOPLE USED BRANDED TEA / UNBRANDED TEA:-

Unbranded Tea 24%

Branded Tea Unbranded Tea

Branded Tea 76%

According to survey, it is found that most of the people used branded tea i.e.76%. Those who are not used branded tea they prefer to use loosed tea which gave them a good taste, quality as per their views taken. There fore companies who want to enter into tea market or who are already there they should keep in mind that they should touch feelings of other people i.e.24% who are prefer to use unbranded tea and convert them in to use branded tea. 51

HOW MANY PEOPLE HEARD THE VARIOUS TEA BRAND:-

120 100 80 60 40 20 0

Line 1

Society T ea

T ata T ea

T etly T ea

T ata Gold T ea

98

94

46

69

B B Red T ata T aj T ea Lable T ea T ea Premiu 84

97

50

Agni Path

Sapat Parivar Chai

Wagh Bakri Chai

Girnar T ea

B B Red Lable Natural

42

67

49

80

59

As per the above graph, it is seen that most of the people heard the brands like society tea, Brook bond Red Lable Tea, Tata tea, Taj Tea, Girnar Tea, Tata Gold Tea, Sapat Parivar Chai. But in actual sense they use something else. Some companies like Tata, HLL (Unilever) brand Brook Bond Red Lable are concentrating on their major product and ignoring the other product in the same field i.e. tea. There fore every company should adopt such promotion strategy that they can get the people who at least know their products of tea.

HOW MANY PEOPLE SEEN THE ADVERTISEMENT:According to the survey conducted, every people said that they seen the advertisement on television of which they heard the name of tea. Most people like the advertisement. Just because advertisement is very nice people buy the tea. Advertisement should be more catching and convert the people from the watching, liking in to buy the particular tea.

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By concentrating on the advertisement companies can earn the more market share in the tea industry

WHICH BRAND HAS MOST ATTRACTIVE ADVERTISEMENT:-

2%

10%

17% Society T ea

5%

T ata T ea

1%

T etly T ea

3%

T ata Gold T ea 13%

T aj T ea B B Red Lable T ea tata T ea Premium

1% 24%

Agni Path Sapat Parivar chai

9%

Girnar T ea B B R Lable Natural Care

15%

As per the above chart, it is seen that most people like Brook Bond Red Lable i.e.24% after that Society Tea and Taj Tea i.e. 17% and 15% respectively. Other companies should concentrate on their advertisement because most of the people get the information about the tea through the television advertisement and they influenced to buy that tea. Companies also should used some catching and attractive slogan or punch line because of which people can like their advertisement and think to buy at least once.

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WHICH TEA IS MOST REGULARLY USE:-

22% 32%

Society Tea Tata Tea Taj Tea B B Red Lable Tea

11%

Tata Tea Premium Girnar Tea

3%

11%

Loose Tea

1%

20%

According to survey, it is found that Society Tea is used by more people i.e. 32%. After that loose tea is more used i.e.22% and then Brook Bond Red Lable i.e.20%.There fore other companies should published or telecast their teas advertisement and influenced people to buy tea. While using the advertisement they should adopt AIDA model i.e. (Attention, Interest, Desire, and Action). Because most attractive advertisement is not enough to captured the market. For example Brook Bond Red Lable Tea has good advertisement and people like their advertisement also but less people prefer to use this tea. So all company should concentrate on the AIDA model and can earn more market.

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HOW PEOPLE BECOME TO KNOW ABOUT THEIR TEA:-

3% 2%

40%

Word of mouth publicity Television radio Print Media

55%

From the above diagram, it is seen that most people come to about their tea through television i.e. 57% people know from it and then word of mouth publicity i.e.42% Other media such as radio, print does not have that much popularity. There fore company can introduced their product through these media. As it required cheap cost. Company also put their hoardings in the retail store as a print media. Because retailer can play a role to promote the tea which create a good awareness about the tea and can increased the publicity of the tea.

BASES ON WHICH PEOPLE BUY TEA:-

1% 16%

1%

Quality Quantity Price other

82%

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As per the survey conducted it is found that most of the people buy the tea on the quality bases irrespective of prices. 82% people want their tea should be qualitative instead of quantitative. People want quality in the tea it should contain good taste and flavored. There fore while processing companies should concentrate on the quality of tea. There are also some people looks into the prices, quantity but it because of they can not afford to pay high prices. Some people also think other factors such as attractive, safe and durable packaging.

HOW MUCH TEA PEOPLE BUY IN A MONTH:-

50 40 30 20 10 0 250 500 750 1 Kgs More Grams grams Grams Than 1 Kgs

Quantity of tea to buy from shop is mainly depending on the number of family member drink the tea. Normally people having family member not more than 6 they buy tea of 500 grams. How much to buy is totally depends on the number of family member drink tea. But if a company wants to launch a new product or renew the existing product then they should make available in a small sachet. It is also useful to those who consider price as a main factor while purchasing tea. People are also buy tea more than 1 Kg.

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PEOPLE SATISFY WITH THE PRICES:9%

Yes No

91%

According to survey taken it is found that 91% people satisfy with the prices of the tea. They don’t find prices are too high. But those think prices are not satisfying it because of their income level and they think that quantity is not as per the price.

PEOPLE WHO THINK QUALITY AS WELL AS QUANTITY GOOD WITH RESPECT TO PRICE:3%

Yes No

97%

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As per the survey conducted, it is seen that most of the people say that whatever they pay, they get in return in terms of quality and quantity. Around 97% people are satisfied and get a positive reply for paying on their own favorite tea. They said that while buying they did not take price into consideration because tastes, flavor, good feeling after drinking tea are important. But 3% people say, they need not received the quality and quantity as per the prices they paid, there fore these people are mostly use loose tea.

VARIOUS OTHERS SECOND PREFERENCES GIVEN BY THE PEOPLE:1%

Society Tea

21%

25%

Tata Tea Tetley Tata Gold Tea Taj Tea

3%

13%

1%

1%

6% 14%

4% 11%

B B Red Lable Tea Girnar Tea B B R L Natural Care Loose Tea Stick to one only Can't Say

It is found while doing survey, when people are given a chance to change their tea they are not willing to change their preference because they are too used to their favorite tea that they are not want to switch on to other tea. These are basically including 25% of people. There are also some people who are ready to change their own tea and used other tea. In this around 21% people are ready to change their own tea to Society Tea. After that they give preference to Brook Bond Red Lable Tea which has 14% of customer.

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From Retailer Point of View:HOW MANY RETAILER KEEP BRANDED TEA, UNBRANDED TEA OR BOTH:-

35% Only Branded Tea Branded & Unbranded Tea

65%

Some retailer keeps both kind of tea in their store which is branded and un-branded tea in their shops. Un-branded tea includes basically loose tea and this is preferred by most of customers for that retailer has to keep it. In un-branded tea there are number of tea which is very famous as this tea carrying some special feature and for that customer like to buy it and again retailer have to keep it. Some retailer likes to keep branded tea only.

RETAILERS KEEP THE FOLLOWING BRANDS IN THEIR STORE MOST:-

9%

11%

8%

9%

8% 10% 8% 1% 3% 1%

13%

7% 12%

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Tata Gold Tea Taj Tea B B Red lable Tea Society Tea Tata Tea B B R L Natural Care Wagh Bakri Chai Tetley Tea Sapat Parivar Chai Tata Tea Premium Agni Path Girnar tea Loose tea

According to the survey, it is seen that number of retailer keeps society tea in their retail shops. It is around 80% of retailer keep society tea. After that Tata tea is also available quickly in the retail shops and this is around 65%. In third position we have Brook Bond Red Label, loose tea and Girnar tea etc these tea are mostly every retailer has in major quantity and also as per the customer requirements. A retailer normally keeps the product in store which has demand in the market by the customers.

WHAT BASES RETAILER SELECTS THEIR PARTICULAR TEA FOR THEIR STORE:-

Quality 40% 46%

Quantity Price Other ( Customer demand)

7%

7%

While keeping any tea in the shop a retailer must take one thing into consideration that is customer demand for the particular tea and quality of that tea. It is the view of most of retailer that they like to keep those teas which normally demanded by most of customers as it is the customers who are going to buy that tea and this is beneficial for both customer as well as retailer. The companies also take one thing into consideration that quality of product is an important selling factor in any tea instead of prices of tea.

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BASES ON WHICH CUSTOMER BUY TEA:15%

5% Quality Quality & Price

55%

Quality, Quantity & price Quality & Other

25%

In survey it is also found that when customer feel to buy a particular tea that time he first think about the quality and test of that tea and after that customer decides to buy or not. And then customer concern about quantity, price, and brand image and company reputation. The company with a good reputation in the market should concentrate on the quality of tea and hence they can earn various market shares in the market.

HOW MANY RETAILER SEEN ADVERTISEMENTS ON TELEVISION:-

25%

Yes

No

75%

A retailer mostly sees advertisements on the television when they are free from their own work because most of their time is spend in their shops. 75% retailer who watches television likes advertisement and 25% retailer said that they are not watching television

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RETAILER LIKE THE MOST ATTRACTIVE ADVERTISEMENT IS:-

7% 7% Society Tea Brook Bond Red Lable Tea Taj Tea

27% 59%

Sapat Parivar Chai

As per the above graph 75% retailer who watch television like most attractive advertisement of Society Tea i.e.59% . After that, retailers like Brook Bond Red Lable advertisement very much i.e. 27%. TEA WHICH HAS MORE DEMAND:-

4% 4% 4%

Taj Tea

31%

Brook Bond Red Lable Tea Society Tea Tata Tea Loose Tea 57%

According to the survey it is seen from the retailer that society tea has more demand by the customer. Society has a demand of 57%. Customer likes the society tea very much even after a price of this tea is very high this feedback normally gets from the retailer. After society retailer have demand for the Tata tea in the customer market which is around 31%.

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WHETHER RETAILER GETS FEEDBACK FROM CUSTOMER OR NOT AND WHAT KIND OF FEEDBACK THEY GET:-

15%

Yes

No

85%

From the above chart it is seen that around 85% retailer get feedback from customers. These feedbacks is basically about the taste of the tea, quality, and brand image and also get extra information like some extra benefit received from the tea relating to health. And very less i.e.15% people are not used to give feedback. But most of the customers prefer to give feedback to their respective retailers.

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Conclusion As per the survey taken, it is found that most of the consumer like the advertisement of tea but they in actual sense use some other brand. It is also found that people are not interested in switching on the other brand. They give more preference to the brand which is use from beginning. Consumer heard about the brand but not use the same brand. In a survey it also found that consumer seen the advertisement and some time they like the advertisement also but not ready to buy the tea. There fore company which is into the tea industry, they should concentrate on the advertisement which turned the consumer mind set and induced them to buy the tea. They should come up with the small sachet because of which consumer can buy their brand at least once. Companies should come with the new ideas which give the information about the how tea is useful to our health and should concentrate on the quality of the tea. Companies should published their advertisement through other media also i.e. print media, radio as it required less cost and nowadays people are turning to this media also.

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Bibliography www.google.com www.indiainfoline.com www.altavista.com www.hll.com www.tatatea.com Marketing Management by Rama Swami.

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