GUWAHATI: The total turnover of the tea industry in India is likely to jump to Rs 33,000 crore by 2015 from the current Rs 19,500 crore as it is growing at a compound annual growth rate (CAGR) of about 15 per cent with nearly six lakh hectares under tea cultivation.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM), in a study on ‘Indian Tea Industry’, has revealed these findings.
”India is world’s largest consumer, second largest producer and fourth largest exporter of tea after China and accounts for nearly 30 per cent of global output and nearly 25 per cent of tea produced worldwide is consumed in India,” a ASSOCHAM release quoted its general secretary Mr DS Rawat as stating.
”Branded market accounts for nearly 55 per cent of the total market and is growing at about 20 per cent while the unbranded market is growing at 10 per cent annually,” he added.
Nearly 35 lakh workers are employed in over 1,500 tea estates across India and about 65 per cent of these are employed indirectly.
Assam produces over half of India’s tea and accounts for over 12 per cent of annual global tea yield, according to ASSOCHAM.
According to an ASSOCHAM estimate, the tea production during the current year is likely to stay over 950 million kilograms as against 966.4 million kilogram in 2010.
”Awareness about health benefits associated with moderate intake of tea is another significant factor behind this upsurge in its demand as now more and more people are familiar with healing properties of tea,” said Mr Rawat.
Historically regarded as a hot beverage, the penetration of tea in the non-alcoholic cold beverage segment is another driving force for this industry owing to the rising affinity towards ice-tea which currently accounts for over five per cent of entire non-alcoholic beverage market in India, said ASSOCHAM.
ASSOCHAM has called for imparting proper marketing skills, research, training and technical know-how to tea cultivators and pluckers to further increase the yield and revenue.
Hindustan Unilever is the current market leader in terms of sales value with over 20 per cent share, while Tata Tea is the leader in terms of sales volume with nearly 20 per cent share. (UNI)