India has a long history with tea production and was once the largest producer and exporter of tea. The document discusses the origins and major tea growing regions of India, the different varieties of Indian tea, and provides statistics on production and exports. It also analyzes the strengths, weaknesses, opportunities and threats facing the Indian tea industry, noting increasing competition from countries like Kenya, Sri Lanka, and China that have lower production costs. The key challenges for India include high costs, remote plantation locations, and declining market share in major importing countries.

1. TEA INDUSTRY

2. ABOUT TEA INDUSTRY
 Tea origin- China (4th Century A.D)
 In India, tea is about 240 years old.
 In 1780 for the first time tea cultivation was experimented in India.
 Robert Bruce in 1823 discovered tea plants growing wild in upper
Brahmaputra Valley.
 In May 1838, tea was sent to England for the 1st time from India
(Assam).

3.  Tea is located in rural hills and backward areas of Northeastern
and Southern States.
 Till 2004 India ranked 1st being the largest producer of tea.
 India Ranks 4th in terms of total tea exporters in the world.
 85% of household consume 81% of total tea produced in India.
 The best quality tea are CTC (Crush, Tear and Curl) and Orthodox Assam Tea.
CTC Orthodox

4. LOCATION MANUFACTURING HUB FOR
TEA
Tea in India is grown primarily in Assam, West Bengal, Tamil Nadu and
Kerala. India has a dual tea base, unlike most other tea exporting
countries. The three most distinct known varieties of tea in India are:
 Assam tea (grown in Assam and other parts of NE India):
1. Assam is known for black tea.
2. Specialty- Tea body, briskness, malty flavor, strong & bright color.
3. 2nd Commercial tea producing region.

5.  Darjeeling tea (grown in Darjeeling and other parts of West Bengal):
1. Darjeeling is known for white & oolong tea.
2. Specialty- Thin body tea, light colored.
3. Darjeeling tea cannot be grown or manufactured anywhere else in the world.

6.  Nilgiri tea (grown in the Nilgiri hills of Tamil Nadu):
1. Nilgiri is known for Dark tea.
2. Specialty- Intensely aromatic, fragrant and flavored.

7. WHICH STATE IS LARGEST
TEA PRODUCER?

8. SWOT ANALYSIS- TEA INDUSTRY
STRENGTH
 The diverse agro‐climatic conditions in India.
 Strong production base with 75% of the
production.
 High quality specialty teas.
 Emerging small grower sector with young
plantation profiles.
 Availability of training facilities for plantation
managers, supervisory staff and workers
WEAKNESS
 High cost of production.
 Remote location of plantations, difficulties in
transportation.
 Poor infrastructure.
 Difficulties in introduction of mechanization.
 Lack of quality monitoring mechanism.

9. OPPORTUNITIES
 Good awareness level: demand of health
quality teas such as organic teas, green
teas.
 Narrowing down of the gap between supply
and demand due to increased growth rate of
consumption.
THREATS
 Competitor such as Sri Lanka, Vietnam, etc.
 Low cost of production of teas from Kenya,
Vietnam and Indonesia etc.
 Younger age of bushes of other producing
countries.
 Consistency in quality commitment and high
service quality perception of exporters of
other countries.
 Better developed packaging and bagging
capacity of Sri Lanka.

10. INDIA’S TEA EXPORT FROM 1998-2008
YEARS QUANTITY(THSD KG) VALUE(THSD RS)
1998 86187 10153607
1999 79470 8861368
2000 75045 8274199
2001 51113 6971690
2002 38347 5418807
2003 43036 6058308
2004 38276 5675256
2005 49491 6149574
2006 30916 4763035
2007 20593 4013622
2008 23632 4981921

11. REASONS FOR THE DECLINE FOR THE
EXPORT
 Continuous price cut by the competitor countries.
 Absolute dependence on some specific countries for export.
 Low Infrastructural development and improvement in service
levels.
 Increase in the internal consumption.
 A very concentrated market.

12. PROMOTIONAL BODY OF TEA
 The Tea Board of India is an state agency of the Government of India.
 Established in 1953
 Headquarter- Kolkata
 Tea board is responsible for the Certification numbers to exports of certain tea
merchants.

13. Promotion activities:
 Tea Board to use Facebook, Twitter to promote tea consumption.
 Participation in Fairs and Exhibitions.
 Trade facilitation by way of arranging Buyer-Seller meets.
 Making all relevant information available to exporters/importers.

14. MAJOR IMPORTING COUNTRIES FROM INDIA

15. INDIA’S COMPETITOR IN TEA
KENYA
 India is in CTC teas and in that the competition is with Kenya.
 Kenyan teas coming from relatively younger bushes have quality that is better
suited for tea bags.
 Their labor costs are comparatively lower.
 The tea industry in Kenya is more competitive than the Indian tea industry as
is reflected by India’s diminishing leadership in key markets.
 Kenya has taken over India’s leadership position in almost all the key
markets.
 Indian firms are surviving mainly in the niche markets that are characterized
by imports in commodity form.

16. SRI LANKA
 Sri Lanka has a very strong presence in the tea bags segment.
 It has very successfully established two global brands that are well entrenched in the
markets for tea.
 During the last decade, large investments were made in producing quality teas and
machinery for tea bags.
CHINA
 China has a small share (around 8%) in black tea, it could make much more black tea.
 the market for green tea is expanding and that could affect to some extent the market
for black tea.

17. THANK YOU!
 Submitted by:
 Sachin Dubay- 1817
 Jeena Patel- 1840
 Krishna Patel- 1841
 Vatsal Patel- 1846
 Pruthvesh Rami- 1848
 Shail Rami- 1849