A report on Tata tea

1. SEMESTER
PROJECT
Submitted by- Shivam Jadhav

2. SECTOR INFORMATION
 FMCG(FAST MOVING CONSUMER GOODS) IS THE 4TH LARGEST SECTOR IN
INDIA ECONOMY AND IS VALUED AT ABOUT US$ 52.8 AS OF 2017-2018.
 Segement of Fmcg-
 Household Care – (Fabric wash, House hold cleaners)
 Personal Care – (Oral care, Hair care, Skin care, perfumes, feminine hygiene, paper
products)
 Food and Beverages – (Drinking water, Fruit and vegetables, tea, coffee and dairy
products , chocolate and Ice cream)
19
31
50
FOOD AND BEVERAGES
HEALTH CARE
PERSONAL CARE AND HOUSEHOLD
%Share of each Segement in the Total
Production in FY 2018-19
%share of each segement in the total production in FY 2018-19

3. REASON FOR GROWTH
There are basically four factor affiliated to this.
Growing Demand-Rising incomes and growing youth population have been key growth
drivers of the sector.
Attractive Opportunity- Low penetration levels in rural market offers room for
growth.
Higher investment- (250-300 crore (US$ 38.79-46.55 million) in FY19), (Patanjali will
spend US$ 743.72 million in various food parks in Maharashtra, Madhya Pradesh,
Assam, Andhra)
Attractive opportunity -Investment approval of up to 100 per cent foreign equity in
single brand retail and 51 per cent in multi-brand retail. minimum capitalization for
foreign FMCG companies to invest in India is US$100 million.

4. PORTERS FIVES FORCE ANALYSIS OF
THE SECTOR

5. B. COMPANY INFORMATION:
“Making a lasting difference in tea, coffee and water, the world over
“
It is an Indian multinational non-alcoholic beverages company
headquarter in Kolkata, West Bengal, India and a subsidiary of the tata
group.
Tata Global Beverages focusses on branded natural beverages — tea,
coffee and water.
TGB is the second largest branded tea company in the world with a
presence in world with more than 40 countries around the world.

6. NEWS & COMPETITOR
TATA TEA GOLD IS OFFICIAL ‘BRAND PARTNER’ FOR IIFA 2019- AUG 2019
TATA GLOBAL BEVERAGES Q1 PROFIT RISES 10% TO RS 142 CRORE- JUNE 2019
TATA GLOBAL BEVERAGES AND TATA CHEMICALS ANNOUNCE TRANSACTION TO COMBINE
CONSUMER BUSINESSES TO CREATE A FOCUSED CONSUMER PRODUCTS COMPANY- MAY 2019

7. C. MARKETING
SWOT Analysis
STRENGHTS WEAKNESS
-ES
THREATS
OPPORTUN
- ITIES
• Brand image
• in house demand
for products
• surplus machine
capacity
• training
manpower
• packing
innovation
• underutilization
of capacity
• No supply in the
domestic market
• Rising labour
cost
• Rising
competition in
the market
• Administration
cost for
outsorcing rises
• Rising labour
cost
• Rising
competition in
the market
• Administration
cost for
outsorcing rises

8. STP OF TATA TEA
 SEGMENT-Geographic: Semi urban, City (Tier1, Tier2)
 Demographic: Income group- Middle class (18000-1,25,000)
 Age-20-40 years.
 Behavioral: Decision role- Buyer & Decider: Housewife.
 TARGET-Indian middle class and Upper middle class which accounts for nearly 300 Million
people
 Target the youth by social message
 like “Jaago re”
 POSITIONG- “Our Tata Tea Gold is the most aromatic tea among all premium tea brand
because 15% longer superior quality leaves”
 Most aromatic tea brand
 Superior quality tea leaves
 Socially responsible

9. PLC OF THE TATA TEA
 Introduction
Tata Tea began its journey more than 30 years ago, when the packaged tea market was dominated
 Growth
Tata Tea is India’s largest packaged tea brand. Today, 1 in every 3 Indian households consumes tea from
the brand’s extensive range of variants. With 4 national and 3 regional brands
 Maturity
Tata Tea goes beyond being just a cup of tea. In 2007, the brand brought in a wave of collective
consciousness and social awakening through its landmark ‘Jaago Re’ campaign - the No.1 corporate led
social cause brand on Facebook India. Decline
 Decline
Packaged tea major, Tata Tea, reported a 33.6% decline in net profit to Rs 19.3 crore, while revenues were
flat with a 0.6% increase to Rs 219 crore for the quarter ended March ‘06, mainly due to a stagnating tea
market.

10. D. FINANCIAL MANAGEMENT
Inventory Turnover Ratio (X) - 4.05
Turnover Ratio - 68.53
The formula for calculating the return on capital employed is:
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total
Assets – Current Liabilities)
Or for Tata Global Beverages:
0.065 = ₹6.2b ÷ (₹113b – ₹18b) (Based on the trailing twelve months to December
2018.)
Therefore, Tata Global Beverages has an ROCE of 6.5%
Solvency Ratio - 88.60

11. HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT

13. WHAT WE LOOK FOR (BEHAVIOR &
SKILLS)
 Passion to achieve
 Innovation and entrepreneurial spirit
 Seek answers, create solutions
 Self-awareness
 People orientation
 Looking at the big picture
 Ethics and integrity

14. ABOUT :
Company Name Tata Global Beverages
Website http://www.tataglobalbeverages.com/
Experience Required Freshers (2018, 2017, 2016, 2015, 2014 Pass outs)
Qualification Any Graduate / Any Post Graduate
Work Location Across India
Job Description Entry Level Engineer
Type of Industry Food & Beverages
Salary Offered Best in Market
 Product Engineer
 Sales Executive
 Front Officer Executive
 Marketing Executive
 Area Managers
 Field Officers
 Supervisors
 Safety Engineers
 Assistant Managers
 Civil Engineer
 Mechanical Engineer
 Electrical Engineer
 Communications
Engineer
 Software Engineer
 Application Programmer
 System Engineer
 Trainee Engineer
Job Openings

15. CONCLUSION
This study of Tata global beverages helped me to understand the various function
of an organization. Also helped me to understand the functioning of different
departments and how they are coordinated and managed to achieve a common
goal. It helped me to understand how the management principle are set in to
practice and also helped me to adapt with the challenges like difficulty and in
collecting and processing of raw data, non-availability of basic information,
constrains in time etc. I feel that new product development, concentrating on
corporate social responsibility, exploring new markets and providing more
customer satisfaction etc are the future prospectus of the company.