1. Indian Tea Market
a snapshot presentation

2. Setting the context…
• The presentation aims at exploring the Indian
Tea Market
• Category size, growth
• Key brands and their share

3. MARKET SCENARIO

4. India – second largest tea producer in the
world…
China, 31%
India, 26%Kenya, 9%
SriLanka, 8%
Turkey, 4%
Indonesia, 4%
Vietnam, 4%
Others, 14%
Tea Production worlidwide - 2009
Source: World Tea Production – Tea Board of India

5. The Indian Tea Market…
Packaged tea market is 213 million kg in
volumes, and valued at Rs. 60 bn*
~231 thousand tons of tea sold in retail in 2008*
Urban: Rural split of tea consumption - 56:44#
*Euromonitor report April 2009, Figures in Rs.bn # Market Monitor Data 2008

6. The industry growing at a CAGR of ~54%
40 43
50
61
0
20
40
60
80
2006 2007 2008 2009
MarketValue (RetailSales)
Source :*Euromonitor report March 2010

7. Green tea has a higher growth rate of 6.5%
compared to black tea
Nascent category.
Negligible size
Tea
Black Tea Green Tea
57 bn 3 bn
3.2 6.4
Fruit/herbal
tea
Instant tea
2003-08 CAGR (%)
Retail Sales Value Rs.
Traditional Black tea dominates the
market with 93% share

8. A highly cluttered market with national and local players

9. KEY BRANDS

10. A fragmented market apart from players
like HUL and Tata Tea…
30%
25%
8%
3%
34%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Hindustan
Unilever
Tata Tea Duncan
Industries
Wagh bakri Others
Tea Company Shares (2009)
Source: Euromonitor International, March 2010

11. Tea Brand Shares – Packaged Tea
(By Value)
Brand Company 2009
Brooke Bond Hindustan Unilever Ltd 18.6
Tata Tea Tata Tea Ltd 17.9
Lipton Hindustan Unilever Ltd 6.2
Duncans Duncans Industries Ltd 6.2
Kanan Devan Tata Tea Ltd 3.5
Wagh Bakri Wagh Bakri Ltd 3.1
Goodricke Goodricke Group Ltd 1.3
Golden Tips Golden Tips Tea Co Pvt Ltd 1.1
Girnar Girnar Food & Beverages 1
Twinings Twinings Pvt Ltd 0.9
Jay Green Tea Jay Shree tea and Industries Ltd 0.7
Infinitea Gopaldhara Tea Co Pvt Ltd 0.5
Tetley Tata Tea Ltd 0.4
Others ~ 38.6
Source: Euromonitor International, March 2010
Market Share (%)

12. Packaged tea has more retail outlets in
rural areas and the North
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
Urban-Rural Urban Rural Metros Class I
Retailer Split by Town Class & Rural
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
North Zone East Zone West Zone South Zone Class I Others
Retailer Split By Zone
Source: Market Monitor, March 08

13. Indian Packaged Tea Market – Structure
Economy
48%
Mid Market
45%
Premium
10%
Leaf 65% Dust 35%
Rs. 40 - 50
Rs. 30-40
Rs. 50-55
Rs. 38-45
Rs. 30-35
Rs. 60
Price per 250 gm

14. From Peshwa