Tata Tea

About The company

Along with its subordinate companies, Tata Tea manufactures 70 million kgs of tea in India, has 54 tea estates, ten tea blending and packaging mills and employs about 59,000 people. The company owns 51 tea estates in India and Sri lanka, particularly in Assam, West Bangal in eastern India and Kerlain the South. The company is the largest maker of Assam Tea and the second-largest maker of cylon tea

Set up in 1964 as a Joint venture with Ukbased James Finlay and Company to develop value-added tea, the Tata Tea Group has now merchandise and trade name presence in 40 states. It is one of India ‘s firsmultinational companies. The operations of Tata Tea and its subordinates focus on branded merchandise offerings in tea, but with a important presence in plantation activity in India and Sri Lanka.

The amalgamate worldwide branded tea concern of the Tata Tea Group contributes to around 86 per cent of its amalgamate turnover with the staying 14 per cent coming from majority tea, cofee and investing income. The company is headquartered inKolkatta. With an country of approx 159km? under tea cultivation, Tata Tea produces about 30 million kilogram of black tea annuallyInstant tea is used for light denseness 100 % teas, iced tea mixes and in the readying of ready-to-drink ( RTD ) drinks. Tata Tea owns five trade names in India – Tata Tea, Tetley, Kanan Devan, Chakra Gold and Gemini. The company has a 100 % export-oriented unit ( KOSHER and HACCP certified ) fabrication instant tea in Munnar, Kerala, which is the largest such installation outside the United States. Tata Tea has subordinates in Australia, Great Britain, United States, Czech Republic and India.

History

1980s

In the early 1980s, the tea industry in India was sing lifting input and labour costs and dwindling borders every bit good as high revenue enhancements. India was confronting competition on the universe market non merely from China, but besides from other states come ining the concern.

In 1983, Tata Tea bought the interest belonging to the James Finlay group to organize the single entity Tata Tea. In the same twelvemonth, the company decided to travel from the trade goods concern to consumer stigmatization. The first trade name Tata Tea was introduced. This was followed by other trade names like Kannan Devan, Agni, Gemini and Chakra Gold. In malice of being the largest market in the universe, the construct of branded tea took clip to be accepted. [ commendation needed ]

In 1987, Tata Tea set up a to the full owned subordinate, Tata Tea Inc. , in the USA.

1990s

In the 1990s, Tata Tea decided to take its trade names into the planetary markets. It formed an export joint venture with Britain ‘s Tetley Tea in 1992. Other new endeavors included a bulk involvement in Consolidated Coffee Ltd. ( Tata Coffee Ltd. ) and a joint venture to pull off agricultural estates in Sri Lanka. Tata Tea Inc. in the United States processed and marketed instant tea from its installation in Florida, based on sourcing of instant tea merchandises out of Munnar and Karalla. In 1993, they entered into a joint venture with Allied Lyons PLC in the UK to organize Estate Tata Tetley.

In the mid-1990s, Tata Tea attempted to purchase Tetley and the Lankan JVC acquired 51 % shareholding in Watawala Plantations Ltd.

By 1999, Tata Tea ‘s trade names had a combined market portion of 25 % in India. [ commendation needed ] The company had 74 tea gardens and was bring forthing 62 million kgs of tea a twelvemonth, two-thirds of it packaged and branded. Towards the terminal of the twelvemonth, the tea concern was hit by a drouth in much of India. In add-on, Russia, one time the largest purchaser of Indian tea, temporarily withdrew from the market.

2000s

An of import measure for Tata Tea was the acquisition of the Tetley Group ( based in the United Kingdom ) in 2000. It was a ?271 million ( $ 432 million ) leveraged buyout. Tata Tea reportedly outbid the American pudding stone Sara Lee in what was described as the largest coup d’etat of a foreign company by an Indian one to day of the month. At the clip, Tetley was the universe ‘s 2nd largest tea company after Unilever ‘s Brooke Bond-Lipton and had an one-year turnover of ?300 million. It was the market leader in Britain and Canada and a popular trade name in the United States, Australia and the Middle East.

Established in 1837, Tetley was the first British tea company to present the tea bag to the UK in 1953. The tea bag was followed by the first unit of ammunition tea bag in 1989 and the ‘no trickle, no muss ‘ drawstring bag in 1997. Tetley now contributes for around two tierces of the entire turnover of Tata Tea.

In 2005, Tata Tea decided to sell the Munnar Estate to its workers. Employee cost ( of the standalone entity ) dropped aggressively by about 40 per cent. They acquired the Good Earth Teas trade name, which has a important presence in the American forte market.

In 2007, Tata Tea launched the run Jaago Re! to rouse the young person to societal issues. The run was successful [ commendation needed ] and has been continued into 2008 as good. In 2009, their run revolves around the issue of corruptness with a new adline ‘Ab Se Khilana Bandh, Pilana Shuru ‘ .

Profile

Set up in 1964 as a joint venture with UK-based James Finlay and Company to develop value-added tea, the Tata Tea Group of Companies, which includes Tata Tea and the UK-based Tetley Group, today represent the universe ‘s 2nd largest planetary branded tea operation with merchandise and trade name presence in 40 states. Among India ‘s first transnational companies, the operations of Tata Tea and its subordinates focus on branded merchandise offerings in tea but with a important presence in plantation activity in India and Sri Lanka.

The amalgamate worldwide branded tea concern of the Tata Tea Group contributes to around 86 per cent of its amalgamate turnover with the staying 14 per cent coming from Bulk Tea, Coffee, and Investment Income. The Company is headquartered in Kolkata and owns 27 tea estates in the provinces of Assam and West Bengal in eastern India, and Kerala in the South.

Marketing scheme & A ; Report

In malice of a planetary presence, the trade names are distributed otherwise depending on the location. As Tata tea is far better known in India and a powerful trade name at that place, it is pushed on this market and states with a big Indian population. Therefore Tetley is the company ‘s planetary face and the largest markets focus on the Tetley trade name. Where both brands co-exist in one market, Tetley is positioned as the premium trade name.

EXECUTIVE SUMMARY { draw: frame } The major point in the comparative growing of Tata Tea is that of Efficient Brand Differentiation & A ; Strong Strategic Planning. The market portion of Tata Tea in comparing with HUL on the footing of the Value can be shown below: { draw: frame }

Analysis OF MICRO, MACRO AND GLOBAL ENVIRONMENT COMPETITIVE STRUCTURE The figure of houses in an industry or those providing replacement merchandises affects the strength of competition. The competitory construction in which Tata Tea is runing is Monopolistic Competition. Features of Monopolistic Competition construction are as follows: Many houses compete with one another. Each house has a comparatively little market portion. The tea market is extremely consolidated in India, with HLL and Tata Tea accounting for about half of retail value gross revenues. Harmonizing to the statistics available from varied different beginnings on cyberspace, HLL ( Brooke Bond and Lipton ) is the clear leader, keeping over 24.5 % of the market portion, while Tata Tea ( Tata ) trails it with about 20.5 % . The balance of the market is far more disconnected and shared between legion little participants. Sellers try to distinguish their offer from that of the rivals by changing their selling mix. Firms strive to do their merchandises and services appear alone to the clients. Harmonizing to Business Standard dated November 19, 2002, Tata Tea trade name underwent a makeover in the expression and feel sections, its polypack signifier, in which Tata Tea had been traditionally packed, sported a new metallic coating. There was a alteration in monetary value point excessively. Tata Tea sells different blends harmonizing to the regional gustatory sensations in India. Tata Tea ‘s merchandises are sold throughout India through a huge web of 600,000 mercantile establishments situated in larger small towns, towns and metropoliss. It launched a “video on wheels” plan ( a truck with a picture that moved through rural countries demoing commercials and selling package tea ) . Tata Tea is besides known for the genuine…

Government and the Tata Tea

The Indian tea industry as the 2nd largest employer in the state has enjoyed the attending of the Indian authorities. When the export gross revenues went down, the authorities has been sympathetic to the demand of the industry and its agriculturists. It has passed declarations back uping the industry domestically and has besides lobbied extensively with organisations like the WTO internationally.

The Indian disposal along with the European Union and six other states ( Brazil, Chile, Japan, South Korea and Mexico ) filed a ailment with the WTO against the Byrd Amendment which was officially known as the Continued Dumping and Subsidy Offset Act of 2000 legislated by the US. The kernel of this act was that non-US houses which sell below cost monetary value in the US could be fined and the money given to the US companies who made the ailment in the first topographic point. The act adversely affected the trade goods concern of the complainant provinces and has since been repealed after WTO ruled the act to be illegal.

Furthermore, the Indian authorities took awareness of the changed tea and java market and put up an Inter-Ministerial Committee ( IMC ) to look into their jobs in late 2003. The IMC has recommended that the authorities portion the fiscal load of plantation industry on history of public assistance steps envisaged for plantation workers mandated under the Plantation Labor Act 1951. Furthermore, IMC has recommended to present agencies so that the agricultural income revenue enhancement levied by the province authoritiess can be slashed and the tea industry be made competitory. It has recommended that sick or belly-up plantation estates should be provided with correspondent degree of relaxation for likewise placed enterprises/estates as are available to industries referred to BIFR.

A Particular Tea Term Loan ( STTL ) for the tea sector was announced by the Indian authorities in 2004. It envisaged restructuring of irregular parts of the outstanding term/working capital loans in the tea sector with refund over five to seven old ages and a moratorium of one twelvemonth, which was to be on a instance to instance footing for big agriculturists. The STTL besides provides for working capital up to Rs. 2 hundred thousand at a rate non transcending 9 % to little agriculturists.

In add-on to these steps, the Tea Board plans to establish a new selling enterprise, which will include raid into new markets such as Iran, Pakistan, Vietnam and Egypt. It besides plans to regenerate its attempts in traditional markets like Russia, the UK, Iraq and UAE. Noteworthy is its purpose to duplicate tea exports to Pakistan within a twelvemonth.

Assam Orthodox Tea is set to have the Geographical Indications ( GI ) exclusivity. A GI cast identifies a certain merchandise as emanating from the district of a WTO member or part or vicinity in that district, where a given quality, repute or other feature of the good is basically attributable to its geographic beginning.

The Cabinet Committee on Economic Affairs set up the Particular Purpose Tea Fund ( SPTF ) under the tea Board on December 29, 2006. The purpose is to fund replantation and greening ( R & A ; R ) programme. In the same twelvemonth, Tata Tea entered into an understanding to take over Jemca, which controls a 26 per centum market portion in the Czech Republic.

The CCEA gave its blessing for nail downing the subsidy at 25 per cent and acceptance of a support form of 25 per cent booster ‘s part, 25 per cent subsidy from the authorities and 50 per cent loan from the SPTF. Banks have besides been instructed to increase the lending period to over 13 old ages.

5 Annual Annual Report of Tata Tea

Mar ‘ 09

Mar ‘ 08

Mar ‘ 07

Mar ‘ 06

Mar ‘ 05

Other income

145.39

109.86

75.76

57.96

50.42

Stock accommodation

-18.67

18.39

-15.59

11.60

-29.33

Raw stuff

785.99

549.25

355.18

279.93

227.21

Power and fuel









Employee disbursals

91.75

71.83

179.15

167.86

255.12

Excise









Admin and merchandising disbursals





92.75

89.99

Research and development disbursals









Expenses capitalised









Other disbursals

367.67

337.65

261.18

256.88

304.44

Commissariats made









Depreciation

10.65

10.17

18.54

19.43

21.99

Tax

70.00

73.00

43.20

43.59

33.23

Net net income / loss

159.06

312.86

306.57

186.93

128.92

Extra ordinary point

-9.59

156.21

106.50

25.17

Anterior twelvemonth accommodations









Equity capital

61.84

61.84

59.03

56.22

56.22

Equity dividend rate









Agg.of non-prom. portions ( Lacs )

400.00

399.79

399.18

399.42

397.52

Agg.of non promotoHolding ( % )

64.68

64.65

67.62

71.05

70.71

OPM ( % )

11.06

15.29

18.47

17.90

15.81

GPM ( % )

16.35

18.98

22.84

21.61

19.38

NPM ( % )

10.43

24.77

26.75

17.97

13.57

5 Annual Gross saless of Tata Tea

Mar ‘ 09

Mar ‘ 08

Mar ‘ 07

Mar ‘ 06

Mar ‘ 05

Gross saless

1,379.25

1,153.43

1,070.35

982.05

899.63

Operating net income

152.51

176.31

197.68

175.79

142.19

Interest

48.60

46.35

11.63

8.97

8.47

Gross net income

249.30

239.82

261.81

224.78

184.14

EPS ( Rs )

25.72

50.59

51.93

33.25

22.93

Tata Tea becomes largest selling tea trade name

In the jammed tea section, Tata Tea, universe ‘s 2nd largest tea operation, has outplaced Hindustan Unilever to achieve the top topographic point in footings of gross revenues volume during June 2007.

Tata Tea ‘s portion base at 19.2 % in June as compared to 18.6 % of HUL. HUL has been a leader in the Indian organized tea market with successful trade names such as Taj Mahal, Brooke Bond and Lipton.

Tata Tea had been positioning its offering different and constructing a wider distribution web. It has witnessed strong growing in Tata Tea Premium and Tata Tea Gold and repositioned its Agni trade name.

It has besides forayed into new sections by establishing Tata Tea Lifewith natural herb tea infusions, Tetley Green Teaand a particular long foliage individual beginning teas in the premium section.

In 2002, HUL ‘s ( once HLL ) market portion was 26.1 % while that of Tata Tea was 16.3 % . But the spread has been contracting down since so and for the first clip in June HUL lost its pole place to Tata Tea.

The state ‘s largest merchandising branded tea and the company ‘s flagship trade name – Tata Tea – took a new enterprise to take its figure one place in the market to newer highs. The trade name has revamped its packaging and communicating.

The new communicating enterprises to specify and add significance to the company ‘s “ Bush to cup ” vision. It accent ‘s on the particularization and the R & A ; D attempts to guarantee the finest quality leaves, attesting the company ‘s passion for supplying the best value to its consumers. A committedness that is reflected in the consumer ‘s fancy and liking for the trade name across the state. A relationship that has been nurtured over the old ages through a consistent bringing of great gustatory sensation in every sip.

The communicating aligns the trade name with the modern twenty-four hours consumer by portraying vibrant, vernal and modern user imagination. While it cues upper in-between category personality to construct stronger aspirational values, it still retains an kernel which is relatable by the cross subdivision of its varied users.

Over the old ages Tata Tea has come to stand for trust coupled with a strong and believable plantation tradition.

The trade name enjoys strongest mind-share among tea labels ( 2001 ET-ORG study ) and has the highest incursion in assorted markets ( 2001 IRS study ) . Through its new communicating Tata Tea is hence truly puting claim on being the state ‘s first pick in tea.

For Tata Tea this is the right clip to re-energize itself and do a clear statement. There has been important eroding in the tea market due to the cyclical nature of the trade good. There has been an explosive growing in the figure of little regional participants offering mediocre merchandises but with the enticement of attractive publicities or really low monetary values.

Through the new communicating run Tata tea intends to set the largeness of the Tata Tea narrative in forepart of the consumer – largeness in footings of size and gustatory sensation ; largeness in footings of Tata Tea ‘s vision and committedness to bigness in footings of the enormous R & A ; D which goes into the merchandise. The re-launch platform is hence rooted in the “ figure one ” position of the trade name and the communicating seeks to convey out the breadth and deepness of the Indian consumer ‘s relationship with the gustatory sensation of Tata Tea.

To further beef up the Tata Tea platform, the packaging concept has been significantly upgraded for better barrier belongingss. The bundle artworks have been modernized and updated to associate better to the modern-day consumer. Pertinently, Tata Tea revolutionized branded tea retailing in India by offering the state ‘s first poly-packed tea in the eightiess.

Merchandises and Trade names

The company has five major trade names in the Indian market – Tata Tea, Tetley, Kanan Devan, Chakra Gold and Gemini — providing to all major consumer sections for tea. The Tata Tea trade name leads market portion in footings of value and volume in India and the Tata Tea trade name is accorded “ Super Brand ” acknowledgment in the state. Tata Tea ‘s distribution web in the state with 38 C & A ; F agents and 2500 stockists caters to over 1.7 million retail mercantile establishments ( ORG Marg Retail Audit ) in India.

The company has a 100 % export-oriented unit ( KOSHER & A ; HACCP certified ) fabrication Instant Tea in Munnar, Kerala, which is the largest such installation outside the United States. The unit ‘s merchandise is made from a alone procedure, developed in-house, of extraction from tea foliages, giving it a typical liquoring and gustatory sensation profile. Instantaneous Tea is used for light denseness 100 % Teas, Iced Tea Mixes and in the readying of Ready-to- drink ( RTD ) drinks.

With an country of approx 15,900 hectares under tea cultivation, Tata Tea produces about 30 million kilogram of Black Tea yearly.

Status of Tata tea in Tea Industry

Tata Teahas been listed among the top 100 trade names in India by Super trade names India, the Indian division of the globally renowned Super trade names Limited.

Tata Teawas selected over 711 taking Indian trade names across98 classs. Awarded by an independent Super trade names council, consisting of high professionals in selling and advertisement, Tata Tea will be featured as one of the strongest Indian trade names in the Super trade names volume to be printed in Italy.

Super trade names are known internationally as the ‘Oscars of branding ‘ . Harmonizing toSuper trade names, ‘A Super trade name offers consumers important emotional and / or physical advantages over its rivals which ( consciously or sub-consciously ) consumers want, acknowledge, and are willing to pay a premium for. The procedure circumvents any superior by market portions but focuses on the more lasting but harder to accomplish standards of trade name image and perceptual experience. Hence the choice influences were the trade names ‘ head laterality, good will, consumer trueness, trust and emotional bonding. ‘

Vivek Mathur, vice-president — selling, Tata Tea said “ This is the first clip that the Super trade names construct has been brought to India for backing taking consumer trade names. The Super trade names position vindicates our scheme of supplying best end cup experience to the client and puting behind trade name edifice. I am confident that Tata Tea will farther beef up its figure one place in times to come. ”

Anmol Dhar, main executive officer, Super brands India, said, “In a ferociously competitory and diverse market of tea, it is an accomplishment to do one ‘s trade name base out. Tata Tea seems to hold captured the kernel of the immense Indian tea market and Super trade names recognize it.”

Tata Tea Reasserts No. 1 Status

The state ‘s largest merchandising branded tea and the company ‘s flagship trade name – Tata Tea – took a new enterprise to take its figure one place in the market to newer highs. The trade name has revamped its packaging and communicating.

The new communicating enterprises to specify and add significance to the company ‘s “ Bush to cup ” vision. It emphasises on the particularization and the R & A ; D attempts to guarantee the finest quality leaves, attesting the company ‘s passion for supplying the best value to its consumers. A committedness that is reflected in the consumer ‘s fancy and liking for the trade name across the state. A relationship that has been nurtured over the old ages through a consistent bringing of great gustatory sensation in every sip.

The communicating aligns the trade name with the modern twenty-four hours consumer by portraying a vibrant, vernal and a modern user imagination. While it cues upper in-between category personality to construct stronger aspirational values, it still retains an kernel which is relatable by the cross subdivision of its varied users.

Over the old ages Tata Tea has come to stand for trust coupled with a strong and believable plantation tradition.

The trade name enjoys strongest mind-share among tea labels ( 2001 ET-ORG study ) and has the highest incursion in assorted markets ( 2001 IRS study ) . Through its new communicating Tata Tea is hence truly puting claim on being the state ‘s first pick in tea.

For Tata Tea this is the right clip to re-energize itself and do a clear statement. There has been important eroding in the tea market due to the cyclical nature of the trade good. There has been an explosive growing in the figure of little regional participants offering mediocre merchandises but with the enticement of attractive publicities or really low monetary values.Through the new communicating run Tata tea intends to set the largeness of the Tata Tea narrative in forepart of the consumer – largeness in footings of size and gustatory sensation ; largeness in footings of Tata Tea ‘s vision and committedness to bigness in footings of the enormous R & A ; D which goes into the merchandise. The re-launch platform is hence rooted in the “ figure one ” position of the trade name and the communicating seeks to convey out the breadth and deepness of the Indian consumer ‘s relationship with the gustatory sensation of Tata Tea.

To further beef up the Tata Tea platform, the packaging concept has been significantly upgraded for better barrier belongingss. The bundle artworks have been modernized and updated to associate better to the modern-day consumer. Pertinently, Tata Tea revolutionized branded tea retailing in India by offering the state ‘s first poly-packed tea in the eightiess.

Mention:

1. hypertext transfer protocol: //www.tatatea.com/careers.htm

2. hypertext transfer protocol: //www.labnol.org/india/corporate/tata-tea-becomes- largest-selling-tea-brand/993/

3. hypertext transfer protocol: //www.tatatea.com/no1status.htm

4. hypertext transfer protocol: //www.tata.com/company/releases/inside.aspx? artid=Q5bdBm qjAnQ=

5. hypertext transfer protocol: //www.business-standard.com/india/news/tata-tea-seeks-distribution-tie-ups-onglobal-scale/375024/

6. hypertext transfer protocol: //money.rediff.com/companies/tata-tea-ltd/12660006/results-annual

7. hypertext transfer protocol: //www.tatatea.com/comp_news4.htm