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Ahmedabad Mirror - Tie Entrepreneurship Challenge

Ahmedabad Mirror, June 18, 2010

TEAMS RETURN WEALTHIER, WISER

The 36-hour entrepreneurship challenge ended on Thursday, with all the four teams showing profit. Everyone was a winner as apart from learning art of making money, they gained valuable field experience.



Click here to read more.

A lot can happen over a cuppa: Wagh Bakri brew gets stronger

The Economic Times, February 10, 2010
Shramana Ganguly Mehta, ET Bureau

AHMEDABAD: During the peak of Greg Chappell and Sourav Ganguly controversy there was one regional brand that was secretly attempting to get them together over a cuppa. The brand, afterall, stood for bringing rivals together, and even its name was carefully chosen to represent the philosophy. While the coach-captain meet that did not materialise, it was around the time when Wagh Bakri, the Rs 400-crore brand synonymous with tea in Gujarat, decided to take a plunge in the national arena to compete with heavyweights including Tata and HUL.

Wagh (tiger) Bakri (goat), the tea brand that today sells 25 million kg of tea annually against HUL and Tata who have a share of about 80 million kg each, was set up in 1925. Unusual as it may seem, but the brand actually projects a tiger and goat sharing a saucer of tea, perhaps a reflection of the times in pre-independent India when harmony was of prime importance.

Today, for 11 million tea cups that are sipped everyday across the country, there is one man in Gujarat who smiles as many times. Piyush Desai, the CMD of Gujarat Tea Processors & Packers Ltd that promotes the Wagh Bakri tea brand is gung-ho about reaching out to as many Indians as possible with his tea brand even as it jostles for space in the national arena with the biggies including Tata Tea , Brooke Bond, Red Label, et al.

"Although WB is small compared to the biggies and is number three in the market, the word-of-mouth publicity by its consumers will help the brand stand the mights of Tata & HUL. Our unmatched flavor and consistency will help us find new customers in new markets," Desai believes. Mahesh Manjawala, executive director, Triton Communications, who has been associated with the brand since last five years now, believes the brand is the one of the most respected brands that the region has ever seen. "Its loyalists cut across all class of the society & consistency in its taste has helped it be the market leader," he remarks. The reason why WB scores over others is because of the efforts that go behind selecting and blending the best teas from Darjeeling tea estates, Assam and Nilgiri. A seasoned tea taster himself, Desai and other company directors have taken upon themselves the task to select the best tea from numerous samples that come to their tea tasting room every morning. "We have been able to maintain consistency in our tea by ensuring that it reaches the customer within one-and-half month from date of production," Desai explains. With vast experience of blending and tasting, the company has mastered the skill of blending 25 to 40 varieties of tea.

As WB gains foothold in Maharashtra which has equally strong regional players like Society, Girnar & Sapat, its competitors have pulled up their socks. Says Harendra Shah, director of Girnar Food & Beverages Pvt Ltd, "We see no threat from WB considering 60% of our turnover comes from exports & do not see our loyal customers leave us. However, we have recently ventured in Gujarat market with two retail outlets and expect to grab a share of the market eliminating the weaker players of the region." Shah says unlike the Maharashtra market where there are multiple players (which might make the journey difficult for WB), Gujarat has just one market leader in tea business.

From a modest beginning in 1919 when Late Narandas Desai (Piyush Desai’s grandfather) set up a small retail outlet The Gujarat Tea Depot Co. in Ahmedabad. WB, the brand, was born was born in 1925. "He owned a tea estate in South Africa but made India his karmabhoomi upon a call from Mahatma Gandhi after facing racial discrimination," Desai says. The brand is the uncontested market leader in Gujarat selling about 15-18 million kg of tea annually (of the 70 million kg per annum consumed here) and has been able to withstand competition from the big layers owing to the strong brand loyalty of its customers, says director Parag Desai. The 36-year-old who handles sales, brand marketing and exports has taken the brand to MP, Rajasthan, Maharastra, Goa and recently launched it in Delhi, with about 1,70,000 retail outlets stocking it.

While the brand has attempted to educate the Mumbai consumer about tea through a WB Tea Lounge and claims to have covered 90% of the Maharashtra market already, it confesses to facing competition from regional brands like Society, Girnar & Sapat in the state.
 

Wagh Bakri to use Delhi as gateway to go national
Business Standard New Delhi , 30 Aug, 2009
Shahana Joshi
The century-old Wagh Bakri tea group has decided to start its operations in North India and plans to use Delhi as its gateway to setting up a national footprint. “People in Delhi certainly love their tea — more than what we see in Mumbai and other cities. Quality tea and consistency is what this brand promises,” said Parag Desai, CEO of the Wagh Bakri group, who also plans to open a tea lounge in this city.

The company’s advertising and promotion is being handled by Triton and Percept. And, in another six months, India can expect to see Wagh Bakri’s first television and print advertisements. Which will be mainly female-centric, as women are about 60 per cent of their customers, notes Desai. He says there will be no filmstars or famous brand ambassadors to promote the product.

However, the Rs 400-crore company, which is aiming at a five per cent market share in North India by 2010, has many hurdles to cross. Wagh Bakri tea, a family-owned regional company, is the leader in Gujarat, where it has a 50 per cent market share.

The group also has operations in Madhya Pradesh, Maharashtra and Rajasthan.

   

The North Indian market, though, is dominated by national brands like Tata Tea and Brooke Bond. Tata Tea’s executive director, marketing, Sangeeta Talwar, adds, “Competition from domestic brands is a possibility but it would take a long time.”

Three cups of tea a day 'can cut heart attack risk by 70%'

By Daily Mail Reporter
Last updated at 12:01 AM on 22nd May, 2009

Drinking three cups of tea a day can ward off heart attacks, a dietician has claimed.

The beverage could even have anti-cancer properties, a review of previous research suggests.

The link between coronary heart disease and tea has been the subject of a large number of studies.

Dr Carrie Ruxton, a member of the Tea Advisory Panel, analysed some of these, which highlighted the effectiveness of naturally occurring compounds called flavonoids in combating heart attacks.

One Finnish study found men who drank more than two cups of tea a day had a 21 per cent reduced chance of stroke.

French research showed that women who drank more than three cups a day had a 32 per cent lower risk of blocked arteries.

Dr Ruxton said the research showed at least three cups of tea a day can lower the risk of a heart attack by up to 70 per cent.

 
















Tea could prevent heart
attacks, thanks
to flavonoids -
naturally occurring
compounds - which may
control inflammation
She said: 'We are not sure of the exact mechanism, but it is thought that tea flavonoids could be involved in controlling inflammation, reducing thrombosis, promoting blood vessel function and helping to limit furring up of the arteries.'

The studies found tea may be 'a useful addition to an anti-cancer diet', she added, but further research was needed.

Dr Ruxton said: 'Tea may be a national favourite but it also has health benefits thanks to its high flavonoid content.
 

Global tea shortage estimate raised to 100 million kg

Business Standard Kolkata, Apr 22, 2009
Ishita Ayan Dutt

Global tea shortage has risen to unprecedented levels. The deficit is being pegged at 80-100 million kg for the three major producing countries — India, Sri Lanka and Kenya.

These three countries account for 80 per cent of the total black tea production. The last major shortfall took place in 1999, which also recorded peak prices, but that was restricted to India.

Taking the pipeline deficit and crop loss into account, the scenario could be worse for India.

The country has started the season with a pipeline deficit of nearly 25 million kg and taking into account the shortage of further 20 million kg this year, it would be nearly 5 per cent of India’s crop. This is alarming for India, which is a net exporter of tea.

Industry sources said, this was the first time that the shortage was across all tea producing countries.

According to estimates for 2008 for India, production is pegged at 960 million kg, exports at 200 million kg, imports at 20 million kg and consumption at 825 million kg.

Azam Monem, former chairman, Calcutta Tea Traders Association (CTTA), the only licensed and official organiser of public tea auctions in Kolkata, said, the shortfall in April in north India alone was to the tune of 15-20 million kg, which was around 40-50 per cent lower than normal production in the same period.

Taking the pipeline deficit of 25 million kg into account, the deficit in north India comes to around 45 million kg. In south India, the shortfall in March was to the tune of 14 million kg.

Ullas Menon, secretary general, United Planters’ Association of Southern India (UPASI), said, the shortfall was around 14 million kg up to March, down 35 per cent and this would be carried forward into April.

India alone is staring at a initial shortfall of around 60 million kg. Industry representatives said, for north India, the crop loss in March and April was unlikely to be covered in the following months.

Monem said, “This cannot be covered in May-July. The only period when it can be covered is October-December.”

Not surprisingly, prices were up in the market. Prices for Dooars teas were higher by Rs 25-30 to Rs 125-140 per kg, while Assam tea was selling higher by Rs 20 to Rs 120-145 per kg. South Indian tea prices were higher by Rs 8-9 per kg.

The shortage on account of global warming is also acute in Sri Lanka. In the first two months of the season, production has dropped to a 10-year low at around 25 million kg.

For Kenya, the drop is around 5.6 million kg, but the country is carrying a deficit of 30 million kg into the year, on account of last year’s drought.

Monem said, the second flush of prices in May would be very strong on account of the shortage.
 

Darjeeling tea industry hit by drought

Business Standard Kolkata, Mar 19, 2009

Severe drought conditions have adversely affected Darjeeling's tea industry, which was earlier hit by an ongoing struggle for autonomy in the region.

Darjeeling Tea Association President Sanjay Bansal told PTI that although the garden unions owing allegiance to the Gorkha Janmukti Morcha had unconditionally withdrawn their demands on March 14, the drought conditions may hit the output.

Although there was no embargo on movement of tea in Darjeeling at the moment, the drought could ruin the crop prospect.
 

Dry spell delays tea crop

Business Standard Kolkata, Mar 19, 2009
Ishita Ayan Dutt

The new tea crop is delayed by about two weeks because of an unusual dry spell in the tea growing areas of Dooars in north Bengal and the northern bank of Upper Assam, indicating that the crop may actually be lower than the projections.

Since November, Dooars, Cachar and the northern bank of Upper Assam have had no rains, resulting in a near drought-like situation. The northern bank of Upper Assam was the only region to have received rains and the only first flush tea came from the region.

However, industry representatives said, even the northern bank was now high and dry. “Normally there are continuous rains after the first shower, but that has not happened,” said sources.

As of now, the industry was expecting the new crop to hit the market two weeks from now. Basudeb Banerjee, chairman, Tea Board of India, said that the board would wait till April 15 and then decide whether it was necessary to revise crop projects. The projections for 2008 are production of 962 million kg, exports of 200 million kg, imports of 20 million kg and consumption of 825 million kg.

Azam Monem, former chairman, Calcutta Tea Traders Association, the only licensed and official organiser of public tea auctions in Kolkata, said that last two auctions were dropped as there were no new arrivals and old teas.

December production, were dearer by Rs 3-5 per kg, over the last sale at the auctions, and Rs 15-20 per kg higher than the same period last year.

Tea produced in December were averaging at Rs 90-95 a kg for Dooars and Assam teas. Last seasons started with a shortfall of six million kg and this season was expected to start with a 20 million kg shortfall.

However, if the dry spell continued, then the shortfall could climb.

Monem said that the situation was pretty much the same for south India. “Africa has also not received rains and it seems that there is a global climatic change,” he said.

Some of the industry representative said that unlike last year when any tea was being sold for very high prices, the desperation this time was not at the same level. “One reason could be that people had planned for the shortage,” said representatives.
 

Assam plans relief for dry spell losses

The Economic Times Kolkata, Mar 19, 2009
Bikash Singh

THE state government is busy readying a relief package as Assam is witnessing unprecedented dry spell for the past four months. The package will be sent to the Election Commission (EC) for clearance as model of code is in place.

Tea bushes across the state are taking a beating owing to scanty rainfall. In many places, planters have resorted to artificial irrigation. The first flush of tea that was expected this month, may get slightly delayed, fear planters. The dry spell is likely to affect rabi crops and boro paddy. The fall of ground water level will also affect summer crops.

Assam chief minister Tarun Gogoi on Wednesday said the state is working on relief measures to fight the situation.

If cleared by the EC, the measures will include supply of drinking water and irrigation facilities.
“I am hopeful that the EC will clear the same. The meteorological predications are not very encouraging. This is a case of climate change. Dry spell, however, is not going to impact the polls,” said Mr Gogoi.

Guwahati is facing an acute water shortage. Craters have developed on agricultural land in several places. The state has asked deputy commissioners to prepare a report on the damages suffered by farmers.

Assam government has identified rampant felling of trees and cutting of lush hill-sides as some of the major factors that have contributed to this situation. Mr Gogoi said the government has already initiated steps to protect large natural water bodies. The government is likely to come up with a law to deal with the menace of hill cutting in Guwahati.

 

Hill unrest to cripple tea industry: Govt

Hindustan Times Live Kolkata, Mar 18, 2009
Pramod Giri

WEST BENGAL chief secretary Ashok Mohan Chakravarti on Tuesday said the tea industy in Darjeeling hills is going through a very serious crisis following the Gorkha Janmukti Morcha's (GJM) threat to collect taxes from gardens. The GJM has also demanded that Darjeeling tea packages be labelled as produce of Gorkhaland.

Chakravarti who was here on Tuesday to attend police and administration meeting said if the Darjeeling Terai Dooars Plantation Labour union (DTDPLU) affiliated with the GJM imposes its agitation then the entire tea industry in the Hills would suffer a heavy loss including the possibility of closure.

Addressing a news conference after the meeting at the circuit house, the chief secretary said tea planters who met him are worried as they cannot send their first flush tea. which fetches highest price at the market.

The problem created by the DTDPLU has dealt a serious blow and if the tea does not come to the market in a day or two many gardens would be closed throwing more than 50,000 workers out of job, he said. Without naming DTD­PLU. the home secretary said, "Trade unions have a right to carry out an agitation but their demands should not be illegal and unreasonable."

The labour union's charter of demands include tea tourism to be run by locals, locals to be recruited for managerial posts and tea produced in the Hills be labelled as a produce of Gorkhaland. The GJM had also threatened to collect taxes from tea gardens. The DTDPLU has temporarily suspended its agitation till the Lok Sabha elections are over.

Chakravarti said the state government is also concerned about the recent poolitical troubles including ethnic tension in   Siliguri   and   Dooars. "Though the situation in the Dooars is peaceful, the police have been clearly instructed to ensure that there is no fur­ther trouble in the area during the elections." he said.

Tha chief secretary added that the state has requisitioned 230 companies of central paramilitary forces for the ensuing polls. Chakravarti also made it clear that it is not possible for the state to meet i he four point demands of Akhil Bharatis'a Adivasi Vikash Parishad (ABAVP) by March 31.

Speaking about closed tea gardens. Chakravarti said the state wants to open closed units. However, this cannot be done unless the lease of the tea garden is cancelled and transferred to another owner.

He added that though the process for reopening ol Samsing tea estate is on. no time frame could be fixed.

The chief secretary also met temporary employees of the Darjeeling Gorkha Hill Council demanding their regularisation. When asked about their demand. Chakravarti said the process would be speeded up after polls.
 

Tea output dips on warm weather

The Financial Express Kolkata, Mar 18, 2009
Rajesh Ravi

After North Bengal, now the tea producers of southern India are bearing the brunt of early onset of summers. Scanty rains in the first two months of the current year have pulled down tea production in South India by 30%, the United Planters' Association of South India (UPASI) sources said.

Production in Nilgiris was constrained in December due to the frost and then the continuous drought in the following months saw production coming down rapidly. "Absence of rain and dry heat in the plantation regions of South India saw lesser availability of tea leaves forcing many tea factories to cut down production shifts," sources said.

Production is reported to be down in January by 2.5 million kg in South India Upasi sources said.

In February, the production dropped by more than 39%, which is around 5-6 million kg lesser than last years production of 16.4 million kg. For the whole of India, production fell nominally from 21.62 million in January 2008 to 21.52 million kg in January 2009. "The arrivals in auctions were affected by the shortfall in production. The impact was felt more in the export category where demand is felt for the leaf variety," Ajith MK of Cochin Tea Buyers Association said.

The India Meteorological Department (IMD) centre in Trivandrum has reported that the mean temperature in Kerala has recorded an increase of 2-3 degree Centigrade in February over the previous year.

Wayanad and Idukki did not receive any rains in January and February. "The production will recoup the shortfall in the coming months," N Sriram, Contemporary Tea Auctioneers. Many parts of the Niligiris received rains during the second week of March. "The arrivals will take time to recoup the shortfall. Supply will be back to the normal level by the third week of April given that the production areas receive adequate rains in March," Ajith said. "The market has also firmed due to the shortfall by 25-30%," he added.

"Higher auction rates for tea are seen affecting the export market as Kenyan crop is reported to be better than the previous year," Sriram said.

According to the Tea Board, exports declined to 12.69 million kg in January, compared with 16.89 million kg in the year-ago period. In value terms, the shipment has declined by about 9% to Rs 150.78 crore against Rs 165.12 crore in the review period. Sriram sees the export market regaining the lost shares in the coming days with more volumes exported to Egypt and Pakistan.

India produced 981 million kg of tea in 2008 when compared to 945 million kg in 2007. Exports touched 196 million kg for the year as compared to 179 million kg of the previous year. This year exports are expected to just rise marginally to 200 million kg, down from the earlier estimate of 205 million kg.
 

India trims tea exports target by 5%

The Economic Times Kolkata, Mar 18, 2009

INDIA has pruned its tea exports estimate for this fiscal by 5% to 200 million kg citing poor supply from the southern region but expects the output to meet forecast.

“We think tea exports may touch just about 200 million kg as compared to the earlier projection of 210 million kg. But production may touch the target of 960 million kg,” Tea Board chairman Basudeb Banerjee said.

India, the world’s second largest tea producer, shipped 157.78 million kg of tea abroad till January this fiscal, while the production was 912.45 million kg. The country exported 179 million kg of tea in 2007-08 and produced 945 million kg.

Tea exports already have come under pressure with shipment in January slumping by 25% to 12.69 million kg compared to 16.89 million kg in the same period last year, according to the data available with the Kolkata-based Tea Board.

The decline in the availability of tea from the southern part of the country impacted exports especially in January, even as output did not decline accordingly. Usually the supply from the northern region declines towards January and shipment hinges upon that from the south, Mr Banerjee said. However, an industry official said even the new target of 200 million kg is hard to meet as supply from southern India is set to be low till the end of this fiscal.

Earlier, the board had expected the exports to touch 210 million kg this fiscal aided by the resolution of trade-related disputes with Iraq, a major importer and a decline in output in the largest exporting nation Kenya.

India had expected to export around 20 million kg of tea to Iraq this fiscal and expected to cash in on the shortfall of around 40 million kg in tea production in Kenya. India is the largest producer of black tea in the world though China remains the top tea producer with an estimated output of 1,094 million kg in 2007.

Kenya is the third largest tea producer in the world with output pegged at 369.61 million kg in 2007. However, it led the pack of exporters with an estimated exports of 345.88 million kg in 2007-08 due to less domestic consumption. India remained at the fourth position in 2007-08, behind Kenya, Sri Lanka and China.
 

Wagh-Bakri Group to buy 4 tea plantations for Rs 50 cr

The Hindu Ahmedabad, Dec 10, 2007
Virendra Pandit

With the aim of expanding its market and increase its current turnover of Rs 260 crore to Rs 375 crore by 2010, the Wagh-Bakri Tea Group is planning to expand capacities and buy four tea plantations for nearly Rs 50 crore in the near future.

The third largest tea manufacturer in the country is also launching three varieties of ready-to-drink ice tea packs on lines of packed fruit juices, priced at around Rs 12 a pack, by mid-2008,
Mr Piyush Desai, Chairman and Managing Director, Gujarat Tea Processors and Packers Ltd, which owns the Wagh-Bakri brands, told reporters here.

Whole night tea parlours

The century-old company is also launching a chain of 10 tea parlours, known as “Whole night tea parlours,” at select places in Ahmedabad to popularise and sell quality tea and biscuits for Rs 5
a cup from 10 p.m. to 8 a.m.

Currently, the Wagh-Bakri brand is sold mainly in Gujarat, Rajasthan and Madhya Pradesh. It recently launched ‘Perfect,’ a premium brand, in Mumbai which would be sold in other parts of Maharashtra soon. “By the end of 2008, our brands will be available in more than 20 towns and cities of Maharashtra.”

At Wagha Border

Mr Desai said the company, which procures raw material from a number of sources and blends and packs them at their plant in Dholka, Ahmedabad district, is also toying with the idea to set up a national-level tea production unit at the Wagha Border to promote harmony between India and Pakistan.

To make tea sold by roadside stalls hygienic, Mr Desai said, Wagh-Bakri and tea other companies had suggested to the Centre to legally ensure that tea is sold in quality paper cups.

He said the Indian tea industry has grown 21 per cent during 2007. The company, having a production capacity of one lakh kg (10 lakh packets) per day, sells around 180 lakh kg annually. The company is planning to expand its production and round-the-year storage capacity also.

Wagh Bakri enjoys a 50 per cent market share in Gujarat, 20 per cent in Rajasthan and 10-15
per cent in Madhya Pradesh. The brand has a global presence in more than 32 countries,
Mr Desai added.

 

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