Swot Analysis Of Tea

has invested an additional 10mn in the company in FY01. India is the largest producer and consumer of tea. Approximately 1.05mn acre of land in India is under Tea cultivation. More than 3/4th of the tea produced is consumed domestically, while rest is exported. Indian tea bushes are very old and therefore productivity is quite low. This leads to a higher cost of production as compared to the same in countries like Kenya, Srilanka and Malawi. Srilanka has emerged as a significant competitor in the export market. Tea production in 2000 registered a 2% yoy growth to 845mn kg as against 825mn kg recorded in 1999. Exports grew from 190mn kg in 1999 to 197mn kg in 2000. Consumption growth in the domestic market has been adversely affected

South Indian tea production declined by 8%, while in North India the company recorded a marginal increase in production. In the packet tea segment, the company registered a marginal volume growth and managed too maintain market share at 20% through aggressive merchandising and brand building. Packaged tea sales account for 70% of Tata Tea 's sales. Flagship brand Tata Tea is the country 's largest selling branded tea with a 7.5% market share. Agni is the other national brand, with a 3.5% market share. A major production restructuring initiative has been undertaken at its south India plantations. The company has identified production techniques, which has enabled it to manufacture high quality tea equivalent to Sri Lankan crop in its south India plantations. The produce from South will now earn significantly higher realizations. Losses of the south India plantation operations have been minimized and is expected to breakeven in FY02. The company has started producing Assam like superior quality tea in the south, which is being exported to Tetley for use in its brands. The company has exported 0.5mn kg of Tea in FY01 and expects to export 1mn kg of tea in FY02. New brands from the Tetley stable are also expected to be launched in

Brooke Bond Red Label, one of the oldest tea brands in the country and the largest selling one, celebrated Mother 's Day today by greeting and commending a cross section of mothers in the cities of Delhi, Mumbai and Bangalore. The mothers ranged from housewives to working mothers and even celebrities. Over 500 mothers in each of the three cities were pleasantly surprised when they were paid an unannounced visit by a Brooke Bond representative. Aimed at recognizing the tears and sweat that mothers go through to bring up their children and keep a happy home running, they were presented with flowers, cards and a sample product