Indian Tea Industry to be worth 33k crores INR by 2015


Unorganized (non-branded) players account to 10% of the market

Indian Tea IndustryIt was during the trade periods of the East India Company of the British when the inception of tea plantation is trusted to begin. The company converted mass tracts of land into tea cultivation areas and this bought in large scale tea production which is majorly exported. However, the drink earned its fame by the mid 1950 as the advertising campaign conducted by the India Tea Board turned out to be a whopping success.  Breaking the Chinese monopoly in the global industry was the core reason for the British introducing tea in India, with a well spread area the country was found to be the best place to carry out the tea plantation activity. The rulers allotted cultivation areas and began awarding contracts to European parties who accepted the offer of planting, producing and exporting the beverage for the first time in the country.

Huge stretches of lands were offered in Assam to these parties for the activity and Maniram Dewan was the first ever Indian tree planter who observed the tricks of the plantation activity.

Today, India has over 6, 00,000 hectares of tea plantation lands and the industry is growing at a speedy rate of an average of 15% per annum. The Indian tea industry was valued to be around 20,000 crores INR by the end of 2011 and was the largest consuming country in the world. It stands as the second largest producer merely next to China accounting to almost 30% of the worldwide production. It consumes nearly 25% of the global tea production.

Watching the consumption trends within the country experts indicate that the sector is ought to develop at an unprecedented rate within the upcoming 3 to 5 years span. Alike all industries; the Indian tea industry also has two segments organized and unorganized better known as branded and non-branded. The branded holds majority share of the total that creeps up to about 55% and has a growth rate of 20% on a yearly basis. The entire industry comprising both branded and non-branded companies are pegged to be worth 33,000 crores INR by 2015.

The non-branded players hold a sizable market of 10% of the total in the country and are assumed to grow bigger as the demand levels are expected to shoot up in the near future. More than 35 lakh workers are employed into the industry and 65% of these are connected indirectly around 1.500 tea estates around the country. Besides the hot tea segment, there are others penetrating the market such as ice tea, green tea and other flavored tea sorts. A market research indicates that these varied segments hold more than 5% of the total consumption market in India. This percentage is sure to increase as tremendous health awareness campaigns are carried out by the manufacturers.

Tea is amongst the select few products in India that enjoys an uninterrupted demand both in the rural and urban regions making it a necessity product in the market. There is not much difference in its consumption rates and thus the market demand is growing with every passing quarter. Historically famous as a hot beverage, tea enjoys a great reception all around the nation. It’s also in demand as it has certain health awareness factors in its favor. Technological enhancements coupled with innovative marketing activities has up surged the Indian tea market to newer levels.

Tata Tea is the leader as per sales volume and Hindustan Unilever is placed as a leader with its highest sales value. These two manufacturers capture the major industry share in the country. However, the industry is facing a tough competition from nations like China, UK, Kenya, Japan and Sri Lanka.