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Wagh Bakri Tea looks to expand footprint; launch more variants in health segment

Ahmedabad-dependent packaged tea maker Wagh Bakri Tea Team is hunting to bolster its distribution footprint and roll out more variants under the well being and wellness section to grow its product sales. The enterprise is also hunting to set up tea lounges throughout the region to maximize out-of-household tea use.

According to Parag Desai, Govt Director, Wagh Bakri Tea, 2020 was a instead “challenging” year as there was a mismatch amongst demand from customers and supply and that pushed up tea prices. Out-of-household use of tea was also impacted on the again of the Covid-19 pandemic.

“Our product sales were nearly stagnant because of to lack of availability of great top quality tea and the lockdown. So, we are expecting to conclusion the present-day fiscal more or considerably less flat. But matters are bouncing again, and if Covid-19 does not participate in out then we are hunting to grow by all over 20 per cent in 2021-22,” Desai informed BusinessLine.

As per manufacturing estimates obtainable on the Tea Board of India web-site, tea manufacturing in North India in 2020, which consists of the gardens in Assam and Bengal, was down by approximately 137.eighteen million kg (mkg) at 1,033.seventy three mkg, compared with 1,170.ninety one mkg in 2019. Since North India accounts for approximately eighty four per cent of the country’s complete manufacturing, any drop in manufacturing in the area adversely impacts the supply of tea in the method.

The drop in manufacturing pushed up prices. Having said that, it was not achievable to go on the entire price to shoppers.

“As an field, prices went up by approximately fifty per cent but we were equipped to go on only all over 30 per cent the rest we had to take in. But prices at the present-day degree are rather secure,” he reported.

With demand from customers reviving and with enhanced traction on the ground, the tea field should really be equipped to conduct far better during FY22.

Packet tea field


Bakri Tea, which has an approximated turnover of all over ₹1,five hundred crore, is deemed to be the 3rd-premier packaged tea enterprise in the region with above forty million kg of tea distribution.

The ₹10,000-crore packet tea marketplace accounts for approximately fifty per cent of the country’s complete tea use of just one billion kg. The section is currently dominated by makes this kind of as Tata Tea, Brooke Bond and Wagh Bakri.

Packet tea, which is primarily deemed to be worth-included tea, ensures larger margins compared to bulk tea.

According to a study performed by the Tea Board of India, the demand from customers for packet tea is on the rise — it is preferred by close to 80 per cent of city and all over 75 per cent of rural households. The perception that packet tea is adulteration-cost-free and has far better storage solutions are the important things driving its advancement.

Favourable demographic things this kind of as an maximize in disposable incomes and aspiration levels and climbing well being consciousness have contributed to the shift from loose tea to packet tea, the study reported.

Wagh Bakri, which currently has fifteen tea lounges, is hunting to include fifty more lounges in the upcoming fifteen months. These would be in the significant metro cities.

“We are trying to carry tea again in manner. Men and women have upgraded to larger top quality tea and are hunting for more worth-included offerings. We are preparing to include more solutions in our wellness range,” he reported.