INDIAN TEA

INDIAN TEA

1. Related and supporting industries

   • Ethical Tea Partnership (ETP), Indian Tea Association (ITA) and Tea Research Association (TRA) have developed a cluster training programme for small tea growers.

2. Factor conditions

   • Primary
     • Tea is an agro-based commodity and is subjected to natural conditions. India produces both CTC and Orthodox tea in addition to green tea.
   • Advance
     • Human Resources: There are a variety of jobs to specialize. Tea tasting is one of the highly specialized area of work, also in research and plantation management
     • Knowledge resources: There are institutes that teach tea production, processing, finance and sales. Anyone with basic educational background can get into tea industry and pick up the skills required for the job. However, a degree in agricultural science, in botany, food science, horticulture or allied fields is preferred in today's world.

3. Demand conditions

   • India is one of the largest tea consuming countries with 80%-70% of its tea production for domestic consumption.
   • in 2016, India produced 1,267.36 million kg of tea, all being available for packaging.
   • In 2016, Indian tea exports represented 11% from the total of e¿tea exports in the world, with an export value of $728M..
   • Indian tea industry is made up of more than 1600 registered tea manufactures and 2000 tea exporters.

4. Firm strategy, structure and rivalry

   • Competitors: Tata Global Beverages - Tetley (since 1837), Hindustan Unilever Limited - Lipton Green Tea (since 1931) Wagh Bakri Tea Group (since 1892) Hasmukh & Co. (since 1933)

5. Chance

   • The key challenges facing the industry identified by the producers were: Pricing not keeping pace with rising costs, climate change, community development, Improving and integrating the rapidly expanding smallholder sector

6. Government

   • *Tea Board: a statutory body of the Central Government under the Ministry of Commerce.
   • The main functions of the Tea Board are: a) Rendering financial and technical assistance for cultivation, manufacture and marketing of tea. b) Export Promotion c) Aiding Research and Development activities for improve tea production and quality. d) Extend financial assistance e) Collection and maintenance of Statistical data and publication