How is Tata Tea coping?
Every company is working on its own strategy to cope with tough market conditions. Take the plantation aspect. As far as Tata Tea is concerned, we have adopted the strategy of establishing strong plantation marts for ourselves. We are developing our plantations to international specifications. Once that happens, the plantation becomes a brand by itself. You can say that our foundation is the plantation brand. Also, the acquisition of Tetley was very significant for us. This move gave us a steady foothold in the international market. It means growth is coming from the international market. What are the macro issues the industry has been beset with? And what could be the solution? Price realisations have been lower than production costs. There has been an oversupply of tea in the Indian market, caused predominantly by the loss of exports. Supply has been exceeding demand. The solution lies in building the export market again. Exports from India have fallen. Once the export market is up a
