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Tea Industry in India

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Tea Industry in India , IIML Page 1



Snehal Zarekar



February10, 2013


Prof. M.K. Awasthi

(Associate Professor)

Indian Institute of Management Lucknow, India

Sir, enclosed is the project report on "Tea Industry in India",

which you authorized me to prepare for Agribusiness

environment Course in Term 3.

Sincerely Yours,

Ms. Snehal Zarekar




 Introduction

 Different types of tea

 Prominent regions growing tea in India

 Production of tea

 SWOT Analysis of Indian tea industry

 Tea Industry and its Crisis

 Ethical Tea Partnership

 Environmental and energy issues in tea industries

 Environment pollution-Tea Industry

 Pollutants from Tea industry

 Meeting challenges of the tea industry

 Indian tea markets

Tea Exports from India

Exports Share from South and North India

Trend of Export to Various Destinations:

Major Determinant Factors of Export from India


Tea isn't simply tea in India but it is like a staple beverage here and a day without it is impossible

and incomplete. Indians prefer their steaming of tea because for them it acts as an energy booster

and is simply indispensable. It has a lot of health benefits too as its antioxidants help to eliminate

toxins and free radicals, from blood. Originally tea is indigenous to the Eastern and Northern parts

of India, but it has expanded and grown tremendously over the years, making India the largest

grower and producer of tea in the world. It accounts for 31% of the global production of tea. The

total turnover of this industry is roughly Rs.10, 000 corers. Since 1947, the tea production in India

has increased by 250% and the land are used for production has increased by 40%.

Different Types of Tea

All the tea that we drink comes from the Camellia Sinensis plant. There are three different varieties

of tea in the world the three main varieties are the India the China and the hybrid tea respectively.

From these the different types of tea like the green, black, white and herbal tea and oolong tea are


Fig: Different types of tea.

There are variety of tea offered in India; from Green Tea to CTC tea to the aromatic Darjeeling tea

and the strong Assamese tea.Indians take a lot of pride in their tea industry because of the preeminence

of the industry as a significant earner of foreign exchange and a significant contributor to

India's GNP.

Prominent regions growing tea

The three prominent tea-growing regions in India are Darjeeling, Assam and Nilgiri. While

Darjeeling and Assam are located in the Northeast regions, while Nilgiri is a part of the southern

region of the country.The process starts with the plucking of tea leaves in the tea estates by women

employees carrying a basket over the head and ends with the production of the ultimate tea.

Production of tea

There are mainly two ways of producing tea in India 1.CTC production 2. Orthodox production.

CTC is an acronym for crush, curl and tear. The tea produced by this method is mostly used in tea

bags. The production method consists of five stages, rolling, withering, fermentation, and drying

finally storing. It is not always possible to compare the two varieties because their quality depends

on factors such as rainfall, soil, wind and the method of plucking of tea leaves and both possess a

unique charm of their own.

Fig: Production of tea

SWOT Analysis of Indian tea industry


1) The agro-climatic conditions prevailing in the tea growing areas of India lend themselves to the

production of a wide range of teas - black, green teas and organic teas.

2) Strong production base with 75 per cent of the production being by organised sector covering

1,600 gardens owned by 1,100 entities.

4) Competent managerial manpower.

5) Strong research backing from well established research institutions.

6) Availability of modernised and upgraded manufacturing facilities.

7) Small grower sector with young plantation profiles.

9) Availability of training facilities for supervisory staff, plantation managers and workers for




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