Tata Tea Limited, also known as Tata-Tetley, is the world's second largest manufacturer and distributor of tea . Owned by India's Tata Group, the Tata Tea Limited markets tea under the following major brands — Tata Tea, Tetley, Good Earth Teas and JEMČA.
While Tata Tea is largest tea brand in India, Tetley is the largest tea company in the United Kingdom and Canada and the second largest in the United States by volume and JEMČA is Czech Republic's leading tea company. Tata Tea Limited along with its subsidiary companies manufactures 70 million kilograms of tea in India, has 54 tea estates, 10 tea blending and packaging factories, and employs around 59,000 people.The company owns 51 tea estates in India and Sri Lanka, especially in Assam, West Bengal and Kerala. The company is the largest manufacturer of Assam tea and Darjeeling tea and the second-largest manufacturer of Ceylon tea.
In the early 1980s, the tea industry in India was experiencing rising input and labor costs and dwindling margins as well as high taxes. India was facing competition on the world market not just from China, but other countries entering the business.
In 1983, Tata tea decided to move from the commodities business to consumer branding. The first brand Tata tea was introduced. This was followed by other brands like Kannan Devan, Agni, Gemini, and Chakra Gold. In spite of being the largest market in the world, the concept of branded tea took time to be accepted.
1990s – Exporting Branded tea
In the 1990s Tata decided to take its brands into the global markets. It formed an export joint venture with Britain's Tetley tea in 1992. Other new enterprises included a majority interest in Consolidated Coffee Ltd. (Tata Coffee Ltd.) and a joint venture to manage agricultural estates in Sri Lanka. Tata Tea Inc. in the United States processed and marketed Instant tea from its facility in Florida, based on sourcing of Instant tea products out of Munnar, Kerala
By 1999, Tata’s brands had a combined market share of 25% in India. The company had 74 tea gardens and was producing 62 million kilograms of tea a year, two-thirds of it packaged and branded. Towards the end of 1999, the tea business was hit by a drought in much of India. In addition, Russia, once the largest buyer of Indian tea, temporarily withdrew from the market.
The Indian tea industry being the second largest employer in the country has enjoyed the attention of the Indian Govt. For the last few years, the performance of Indian exports has not been encouraging. During these tough times, the govt. has been sympathetic to the demand of industry and cultivators. It has passed resolutions supporting the industry domestically and has also lobbied extensively with organizations like the WTO internationally.
1.Indian administration along with European Union and 6 other countries- Brazil, Chile, Japan, South Korea, and Mexico; filed a complaint with the WTO against Byrd Amendment formally known as Continued Dumping and Subsidy Offset Act of 2000 (CDSOA) legislated by the US.
The essence of this act was that non-US firms which sell below cost price in the US can be fined, and the money given to the US companies who made the complaint in the first place.
This act adversely affected the commodities business of the complainant states and has since been repealed after WTO ruled the Act to be illegal.
2.The Indian govt. took cognizance of the changed tea and coffee market and set up Inter-Ministerial Committee ( IMC ) to look into their problems in late 2003.The IMC has recommended that govt. share the financial burden of plantation industry on account of welfare measures envisaged for plantation workers mandated under the Plantation Labour Act 1951.IMC has also recommended to introduce means so that the Agricultural Income Tax levied by the state governments can be slashed and the tea industry be made competitive.It has recommended that sick/bankrupt plantation estates should be provided with analogous level of relaxation for similarly placed enterprises/estates as are available to industries referred to BIFR.
3.Special Tea Term Loan (STTL) for the tea sector was announced by the Indian govt. in 2004.
It envisaged restructuring/rephasing of irregular portion of the outstanding term/working capital loans in the tea sector with repayment over 5 to 7 years and a moratorium of 1 year, which was to be on a case to case basis for large growers. The STTL also provides for working capital up to Rs. 2 lakhs at a rate not exceeding 9% to small growers
4.Latest initiatives by the tea Board
The tea Board plans to launch a new marketing initiative, which will include foray into new markets such as Iran, Pakistan, Vietnam and Egypt. It also plans to renew its efforts in traditional markets like Russia, UK, Iraq and UAE. Noteworthy is its intent to double tea exports to Pakistan within this year.
Assam orthodox tea is all set to receive the Geographical Indications (GI) exclusivity. A GI stamp identifies a certain product as emanating from the territory of a WTO member or region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographic origin.
Cabinet Committee on Economic Affairs (CCEA) on December 29, 2006 to set up the Special Purpose Tea Fund (SPTF) under the tea Board for funding replantation and rejuvenation (R&R) programme.
The CCEA gave its approval for pegging the subsidy at 25 per cent and adoption of a funding pattern of 25 per cent promoter's contribution, 25 per cent subsidy from the Government and 50 per cent loan from the SPTF. Also banks have been instructed to increase the lending period to over 13 yrs.
While Tata Tea is largest tea brand in India, Tetley is the largest tea company in the United Kingdom and Canada and the second largest in the United States by volume and JEMČA is Czech Republic's leading tea company. Tata Tea Limited along with its subsidiary companies manufactures 70 million kilograms of tea in India, has 54 tea estates, 10 tea blending and packaging factories, and employs around 59,000 people.The company owns 51 tea estates in India and Sri Lanka, especially in Assam, West Bengal and Kerala. The company is the largest manufacturer of Assam tea and Darjeeling tea and the second-largest manufacturer of Ceylon tea.
In the early 1980s, the tea industry in India was experiencing rising input and labor costs and dwindling margins as well as high taxes. India was facing competition on the world market not just from China, but other countries entering the business.
In 1983, Tata tea decided to move from the commodities business to consumer branding. The first brand Tata tea was introduced. This was followed by other brands like Kannan Devan, Agni, Gemini, and Chakra Gold. In spite of being the largest market in the world, the concept of branded tea took time to be accepted.
1990s – Exporting Branded tea
In the 1990s Tata decided to take its brands into the global markets. It formed an export joint venture with Britain's Tetley tea in 1992. Other new enterprises included a majority interest in Consolidated Coffee Ltd. (Tata Coffee Ltd.) and a joint venture to manage agricultural estates in Sri Lanka. Tata Tea Inc. in the United States processed and marketed Instant tea from its facility in Florida, based on sourcing of Instant tea products out of Munnar, Kerala
By 1999, Tata’s brands had a combined market share of 25% in India. The company had 74 tea gardens and was producing 62 million kilograms of tea a year, two-thirds of it packaged and branded. Towards the end of 1999, the tea business was hit by a drought in much of India. In addition, Russia, once the largest buyer of Indian tea, temporarily withdrew from the market.
The Indian tea industry being the second largest employer in the country has enjoyed the attention of the Indian Govt. For the last few years, the performance of Indian exports has not been encouraging. During these tough times, the govt. has been sympathetic to the demand of industry and cultivators. It has passed resolutions supporting the industry domestically and has also lobbied extensively with organizations like the WTO internationally.
1.Indian administration along with European Union and 6 other countries- Brazil, Chile, Japan, South Korea, and Mexico; filed a complaint with the WTO against Byrd Amendment formally known as Continued Dumping and Subsidy Offset Act of 2000 (CDSOA) legislated by the US.
The essence of this act was that non-US firms which sell below cost price in the US can be fined, and the money given to the US companies who made the complaint in the first place.
This act adversely affected the commodities business of the complainant states and has since been repealed after WTO ruled the Act to be illegal.
2.The Indian govt. took cognizance of the changed tea and coffee market and set up Inter-Ministerial Committee ( IMC ) to look into their problems in late 2003.The IMC has recommended that govt. share the financial burden of plantation industry on account of welfare measures envisaged for plantation workers mandated under the Plantation Labour Act 1951.IMC has also recommended to introduce means so that the Agricultural Income Tax levied by the state governments can be slashed and the tea industry be made competitive.It has recommended that sick/bankrupt plantation estates should be provided with analogous level of relaxation for similarly placed enterprises/estates as are available to industries referred to BIFR.
3.Special Tea Term Loan (STTL) for the tea sector was announced by the Indian govt. in 2004.
It envisaged restructuring/rephasing of irregular portion of the outstanding term/working capital loans in the tea sector with repayment over 5 to 7 years and a moratorium of 1 year, which was to be on a case to case basis for large growers. The STTL also provides for working capital up to Rs. 2 lakhs at a rate not exceeding 9% to small growers
4.Latest initiatives by the tea Board
The tea Board plans to launch a new marketing initiative, which will include foray into new markets such as Iran, Pakistan, Vietnam and Egypt. It also plans to renew its efforts in traditional markets like Russia, UK, Iraq and UAE. Noteworthy is its intent to double tea exports to Pakistan within this year.
Assam orthodox tea is all set to receive the Geographical Indications (GI) exclusivity. A GI stamp identifies a certain product as emanating from the territory of a WTO member or region or locality in that territory, where a given quality, reputation or other characteristic of the good is essentially attributable to its geographic origin.
Cabinet Committee on Economic Affairs (CCEA) on December 29, 2006 to set up the Special Purpose Tea Fund (SPTF) under the tea Board for funding replantation and rejuvenation (R&R) programme.
The CCEA gave its approval for pegging the subsidy at 25 per cent and adoption of a funding pattern of 25 per cent promoter's contribution, 25 per cent subsidy from the Government and 50 per cent loan from the SPTF. Also banks have been instructed to increase the lending period to over 13 yrs.
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