project report on milk

8/12/2019 project report on milk

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Tata Tea

Government First Grade College Shikaripura 2

INDUSTRY PROFILE

GLOBAL TEA OVERVIEW :

At the turn of the century (2000/2001) the global tea industry reached a crucial threshold.

In medium to long term projections, world tea production started outstripping world tea

consumption, which was not good news for tea industry players.

Global tea prices reached an unprotected peak in 1984, due to factors, such as the decline

in world output, and an export ban imposed by India. But in the last 17 years, world tea prices

have never reached that magic US $ 2.40 per k.g. mark whether at auction centers in Colombo,

Kolkatta, Mombassa, (or) any other production destination.

Demand and supply has more (or) less maintained equilibrium over the last decade, withan edge for production over consumption. Year on year performance fluctuated according to the

extent of crop success in individual countries, and import demands by major buyers.

PRODUCTION PATTERNS:

Global tea productions of black tea and green tea went up by about 60% in the last 20

years, from 1.85 billion k.g. In 1986, to almost 3 billion k.g. by 2006. All major world

producers increased output, except the former Soviet Union, which suffered a dramatic drop of

90%.

China doubled its crop, and Kenya increased its output threefold. Production in Sri

Lanka and India each grew by 50%. Sri Lankan gains were made since the 1992 privatization of

state owned plantations, and their dominant low grown tea shows great promise.

IMPORTS :

U.K. began the period as the dominant importer but lost the position to the Soviet Union

in 1980, the British purchased 210 million k.g. and apparently consumed about 180 million k.g.

while U.K. imports have diminished to 155 million k.g. Today, the former U.S.S.R. had

absorbed 192 million k.g. by 2000. The top 4 importersU.K., Pakistan, U.S.A., and Egypt

maintained intake at about the same levels, though rankings fluctuated. The other smaller

importing countries increased their total imports from 60 to 110 million k.g.


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Ignoring the Soviet Unions figures, where a domestic industry in decline forced

increased imports, the outstanding result has been Pakistans doubled needs. Since the 76

million k.g. purchase din 1986, Pakistan off-takes officially reached 111 million k.g.

EXPORTS :

Asia still dominates global tea, but their export share declined progressively. Tea exports

from Africa have moved up from 19-25% between 1986 and 1996, upto 26% by 2006. South

America and other regions have remained static at around 5-6%. Total world tea exports,

including green tea, were 852 million k.g. In 1986, rose to 1,077 million k.g. by 1996, and

further climbed to 1,322 million k.g. in 2006. Kenya almost doubled its export share with an

increase from 9-16%. Chinas share also grow from 11-17%, green tea being its main strength.

Sri Lankan and Indonesian market share have remained static at 21% and 8% respectively.

RETENTION :

As a percentage of the total world crop, the net volume retained for domestic

consumption by all producer countries in 2006 (1620 million kg) was 55%. In the last 15 years,

the total volume retained by growing nations as a percentage global tea output has changed little.

So, more than half the worlds tea is consumed in producer countries. Analysis predict that

domestic absorption in producer countries, such as India, China, Sri Lank, Bangladesh, and

Indonesia will grow faster in the next decade.

EXPORT REVENUE (VALUE)

Value for the last 15 years have Sri Lanka ahead, with significant margins over India,

Kenya, and China.

Runner up Kenya short from US $ 198 million to 545 million between 1987 and 2003.

However, the Kenyan total export value declined to US $ 49.9 million by 2005.

In 2003, Sri Lankan total exports were 265 million k.g. compared with 263 million k.g.

Exported by Kenya. Although export volumes of both countries were similar, Sri Lankan

earnings were higher at US $ 747 million than Kenyas US $ 545 million returns. It proves the

strength of Sri Lankan value added tea exports (bags and packaged), where were higher than all

other producer nations.


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COMPANY PROFILE

TATA Tea Ltd., is one of the largest integrated tea companies in the world and is among

the best performing companies in the corporate sector in India. The company has achieved its

current position of leadership through several innovative measures in its plantations, factoriesand the market place. The name TATA is well trusted by one and all and had established itself

as a symbol of world class service, quality and reliability.

TATA Tea has a 100% export oriented tea company, which is the largest outside the

U.S.A. TATA Tea also operates as a blender marketer in the domestic packet tea market. The

company also has a significant presence in spice and coffee. The company is recognized for

pioneering the introduction of several enlightened labour management practices in the tea

industry. The company is organized into several profit centers, each of which operates as an

independent division.

The packet tea division of the company is located at Yeshwanthpur. The packet tea

division is in the business of marketing various brands of teas in an immensely competitive

packet tea market. The packet tea division buys in the necessary teas for its teas, packs them at

its factory and markets them in several states primarily in South India, Central and Western

India.

.BACKGROUND OF THE COMPANY :

The TATA group entered the packet tea business in 1961-62. It started of as a joint

venture with James Finlays of Scotland, who owned and managed several tea plantations in India

at that time. The company started out with an instant tea factory at Munnar, Kerala and a

blending and packaging unit at Bangalore.

Sir. Johnmuir, Chairman of James Finlay, inaugurated the packet tea division at

Bangalore on 4th

March 1964. But the operations of blending, packing and marketingcommenced only in mid 1964.

Initially the company went through a difficult phase, as consumers no readily accepted its

products. The years 1965-66 saw drastic reductions in the labour force and also the divisions

loser rapidly eroded its capital bas.


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The situation stabilized in 1967-68 as the company received export orders from Iran, Iraq

and Middle East countries. Domestic operations also began displaying an upturned and all

accumulated losses were slowly but steadily offset. In 1972 the company received an export

award form the Government of India for its outstanding performance on the export front.

In 1983, the TATA group under the leadership of Mr. Darbari Seth acquired the tea

plantations and other related interests of James Finally in India. Thus was born TATA Tea Ltd.,

a 100% Indian owned company. The Bangalore unit has never looked back since then and has

moved from strength to strength.

TATA Tea was the first tea company in India to set up processing and packing facilities

at the tea estates itself. The company has a fully automated advanced tea factory at Madupatty in

Munnar. This instant tea manufacturing facility for exports, located at Mannur, is the largest

instant tea factory outside USA. Tata tea also has a factory at Chundavurri in Mannur, which is

the largest Orthodox tea factory in the world. At the movement, tata tea is the leading

plantation company in India and also perhaps the largest integrated tea producer in the world

with more than 50 tea estates across the country. In fact, in the year 2005 the company produced

approximately 58.5 million kilograms of tea. It was also in the same year that the company

acquired the entire share holding (worth 271 million) of the worlds secondlargest branded tea

company. Tetley group limited through its subsidiary, tata tea limited. The company expects to

foreign markets following the acquisition. This take over has gained international recognition for

the tata tea. The combined turnover of TATA and Tetley brands is expected to be 2800-2900

crores. Tetley Tea brands has over 22% share in the Canada Tea market.In the packed branded

tea segment, Tata tea now is the second largest player in the country with 22 percent market

share. The company has stated focusing on branded tea and has a number of regional brands in

its portfolio. The acquisition of Tatley tea brands will surely make tata tea, a gain in the world

tea market. The company is now considered introducing products under the Tetley brand name

in India as part of expansion.

VISION AND MISSION :

VISION:Be an exemplary corporate citizen, upholding tata values with total commitment to our

customers and all stakeholders for sustained growth.


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integrity. Tenacity, team work commitment to society and environment the basic purpose of Tata

Company, set in the context of the tata groups leadership with trust will guide all the activities

that tata under take in order to achieve our goals.

THE VARIOUS BRANDS OF TATA TEA LIMTIED :

TATA Tea Brahmaputra Chakra Gold Kannandevan Gemini Leo Lucky cup Agni Tata Tetley Temptation

THE MAIN COMPETITORS OF TATA TEA LIMITED :

Brooke Bond Lipton India Limited Duncan Kasturi And others.

FINANCIAL REPORT OF THE COMPANY :

A Tata company shall prepare and maintain its accounts fairly and accurately in

accordance with the accounting and financial reporting standards which represents the generally


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accepted guidelines, principles, standards, laws and regulations of the country in which the

company conducts its business affairs.

Internal accounting and auditing procedures shall fairly and accurately reflect all of the

companys business transactions and disposition of assets. All required information shall beaccessible to company auditors and other authorized parties and government agencies. There

shall be no will full omissions of any company transactions from the books and records, no

advance income recognition and no hidden bank accounts and funds.

TATA TEA SENIOR MANAGEMENT :

Name Designation

Mr. P. Siganporia Managing Director

Mr. V. Venkiteshwaran Executive Director

Mrs. S. Talwar Executive Director

Mr. L. Krishnakumar Sr. Vice PresidentFinance & IT

Mr. D.K. Sen Vice President & Company Secretary

Mr. D. Borah Vice PresidentNIPO

Mr. S. Swaminathan DirectorSpecial Projects

Mr. K.N. Desai Vice President Tea buying and Blending and

Bulk Tea Sales

Mr. A. Sengupta Vice PresidentHR

Mr. A. Hazarika C.E.O., Tata Tetley, Cochin

Mrs. A. Madeka General ManagerFinance

Mr. B. Bordoloi General ManagerGuwahati Branch


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Mr. P. Dant General ManagerSales & Mkts, Bangalore

Mr. John Mathai Chief Internal Auditor

Mr. R. Sunder Corporate Quality Head (CBE)

Mr. S. Ravi General ManagerITO

PRODUCT PROFILE

INTRODUCTION :

Tea is a beverage, produced by steeping top leaves and buds of the tea plant in freshlyboiled water.

Tea is consumed as either a hot (or) a cold beverage by about one half of the worlds

population. Yet it is second to coffee in commercial importance, largely because a significant

portion of the worlds tea crop is consumed in the growing regions.

Today tea is a grown and exported principally by India, Ceylon, Indonesia, and the

central African countries. Smaller quantities are produced in Formosa, Brazil and Argentina.

There are also some countries that produce large quantities of tea but use practically all they

produce, so they have little to export. Among them are China, the Soviet Union, Japan, Pakistan

and Turkey.

Tea is used as a beverage in practically all the countries of the world. The United

Kingdom is by far the greatest consumer. It imports more than fifty pound crore a year. This is

almost four times as much as that imported by the United States, the second largest importer.

Tea discovered possibly more than four thousand years ago, has become a drink known and used

today in practically every comer of the globe.


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company. While a major portion of the produce was exported, in 1916 the surplus tea from the

Kanan Devan Hills started being distributed in south and central India through the local tea sales

department. A network of dealers was set up to distribute the tea, a major portion of this network

is still intact in Kerala and others states.

The Finlay and major company held control over most of estates till 1964 when James

Finlay entered into collaboration with the TATAs for setting up an instant tea factory in Kanan

Devan Hills. In 1976. The Tatas took over the tea production and marketing operations of

James Finlay and a new company Tata Finlay Ltd., was born. Today 23 estates from the home

of Kanan Devan Tea a heritage brand of Tata tea. Specifically soured from the Kanand Devan

Hills, Kanan Devan tea is characterized by its unique taste preferred throughout south India. It is

also perhaps Indias only single source Tea much akin to a fine single malt. The Kanan Devan

USP. Today the brand is a leader in its own right throughout south India selling about 7 million

kgs of tea.Kanan Devans market share in the south zone is 9.8% and the brand sells in Kerala,

Karnataka, Tamil Nadu and Goa.

C) TATA TEA PREMIUM :

Tata Tea, the flagship brand of our company, was launched in 1987. The brand promises

a cup of tea that gives asli taazgi (real freshness) to the consumers. Tata tea used tea leaves

picked from our own gardens, packed then and there at the gardens, thus sealing in the real

freshness of the gardens. The bagano ki taazi (Garden freshness). Proposition appealed greatly

to our consumers and made our brand a huge success.

Tata tea still maintains and delivers on its promise of bringing a refreshing cup of tea to

the consumers, from the choicest tea leaves.

Real freshness, Real fun :

Through the years Tata tea has managed to communicate the freshness that it promisesthrough the pep and zeal of its advertising campaigns. Catchy ad lines and memorable jingles

have always been the hallmark of our communication with the consumers. In 2005, Tata tea has

successfully positioned itself on the `asli taazgi, asli mazaa (real freshness, real fun) plat form.


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Freshness in a new pack :

In 1999 Tata tea changed its pack to make it more youthful and vibrant and launched the

green polypack that it is currently available in Tata tea is sold in both the leaf and dust variants.

The dust variant is sold in red poly packs in some regions. It is retailed in 1 kg jars, 500 and 250gm jars/ poly packs, 100gm, 50gm, and 1 Re poly packs.

Tata Tea - where it stands today :

The target group for Tata tea cuts across all socio economic classes. High quality product

offering at reasonable prices coupled with an effective communication strategy with the

consumer has won the brand several thousand loyalists across the country. Little wonder then,

that tata tea is today the single largest national tea brand in the country with a market share of

7%. The brand it self harmonized to stay contemporary and relevant through continuous efforts

to rejuvenate it. This is corroborated by the annual brand equity study of the most admired

brands in the country which ranks tata tea first among all tea brands and 30 thover all, across the

all categories.

D) CHANDRA GOLD BRAND :

Golden taste :

Chakra Gold tea is a blend of high quality Assam CTC Dust Teas. Chakra Gold is a

strong No.2 bran din the high quality and high priced premium dust tea market of south India.

The consumer communication of the brand centered on the Golden moments in the consumers

life has been well received and the same theme of Golden touch and Golden woman have

inspired millions of consumers across south India to be loyal consumers of Chakra Gold, Golden

Taste. Consumer promotions have been an important part of the brand communication. The

promos of Chakra Gold were unique. Starting from the school time table promo to golden future

promo etc. The brand was promoted through many innovative activities geared towardsbringing in more and more trials and visibility and loyal customers. Chakra Gold is available to

household consumers in a sleek, trendy and extremely attractive, international guill packaging.


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E) AGNI BRAND :

Agni was launched in the economy segment of the packet tea market and within a few

months of launch over took the market leader, to become the undisputed No.1 brand in this

segment. To meet the expectations of the economy segment consumers who wanted a strong cupof tea, Agni was positioned as Josh Se Bhari, Daam Me in Khari; Asli Kadak Chai (full of

strength at an unbeatable prices, the real strong tea). All the packaging elements were

accordingly designed to reinforce the positioning of strength, namely; the brand name Agni, the

pack colour red, and the pneumonic of tea leaves bursting into flames. Agni was launched in leaf

form (in north, east and west India) as well as dust forms (south India and Maharastra).

The brand positioning of Agni was epitomized through Sridevi, the actress, as the brand

Ambassador. The Agni woman, as potrayed by Sridevi, was of one who wanted only the best

for her family and one who was in command of her life. The association between Agni and

Sridevi is so strong that even today, amongst many consumers, the 2 names are synonymous

with each other.

The launch advertisement campaign for Agni was unleashed amidst a high impact media

blizkrieg in December 1998. The impact fully TV commercial (TVC), backed with extensive

press releases and road shows created tremendous awareness. These were extensively supported

with below the line activities and the brand becomes a runaway success over night. The impact

of this launch was so high that the TVC not only registered the highest awareness levels among

consumers, it also ranked as the most liked commercial of the tea category. Agni was tata tea

limits (TTLs) largest nationalbrand launch, after the successful launch of tata tea, the flagship

brand, in the 1980s today Agni is the 2ndlargest brand in TTLs portfolio in volume terms, with

an all Indian market share of 3.4%.

F) TEMPTATION BRAND :

Tata tea is now offering consumers great value with the launch of Tata tea temptation a

premium, orthodox leaf tea. Temptation will offer tea connoisseurs a rare flavor of Assam leaf

that delivers a unique taste and aroma.

Tata tea temptation is the first among many new products to come from Tata tea limited

and can be attributed to the companys sharply focused philosophy. The customer is


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sovereign. The customer defines what they want, we refine it, keeping in line with this

commitment towards consumers, Tata tea has always strived to give its consumers the tea they

desire.Further, in keeping with this philosophy, the company also studies in depth the

preferences of people in different regions and introducer new blends to satisfy varied regional

tastes.Tata tea temptation is a superior blend of finest orthodox teas from select gardens in

Assam. This process retains the leaves unique balance of taste and aroma. The company is

convinced that tata tea temptation will fulfill the discerning consumers search for a tea that

offers this perfect balance in their choice of brand.

G) TATLEY BRAND :

On 10thTatley is the second biggest tea bag brand world wide, with sales in a number of

key markets across the globe. Tatley is a brand leader in both the UK and Canada, is a well

established major brand within both the USA and Australian tea markets, and has a developing

presence in France, Poland and Russia, Tatley also holds brand leader ship (or) significant

shares within a number of other world tea markets.

The Tetley group has around 1100 employees world wide. Tetley currently has one

manufacturing site in the UK, one in Australia, and two in USA and one, together with our joint

venture partner, Tata tea limited, in India. For the year to March 1999 the Tatley group

generated operating profit before exceptional restructuring charges of $25 m on (pounds) a

turnover of L 323 m. March 2006 the sales of the Tetley group to Tata tea limited, one of the

worlds largest integrated tea business was completed.

H) TATA TEA LIFECup of life:

The TATA tea company recently introduces a new product i.e., TATA tea life it is purely

flavoured tea, the ingredients used are Tulsi, Brahmi, Cardamom, Mint and Ginger.

This new product was introduced by Executive Director Sangeeta Talwar, and Tata TeaManaging Director, P.T. Siganporia to the market on March 12 th2007 with a hope of meeting

customer expectations.


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BIBLIOGRAPHY

News papers

THE HINDU BUSINESS LINEReports and Records of the Dealer

Websites

www.tatatea.com www.tatateaindia.com www.google.com


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Balance Sheet of Tata Tea ------------------- in Rs. Cr. -------------------Mar'13

Mar '12 Mar '11 Mar '10

12

mths

12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 25.94 25.94 25.94 25.94 Equity Share Capital 25.94 25.94 25.94 25.94 Share Application Money 0.00 0.00 0.00 0.00 Preference Share Capital 0.00 0.00 0.00 0.00 Reserves -3.19 -1.89 -1.39 -2.20 Revaluation Reserves 0.00 0.00 0.00 0.00 Networth 22.75 24.05 24.55 23.74 Secured Loans 0.00 7.23 4.00 0.00 Unsecured Loans 9.00 0.00 5.00 0.00

Total Debt 9.00 7.23 9.00 0.00 Total Liabilities 31.75 31.28 33.55 23.74

Mar

'13Mar '12 Mar '11 Mar '10

12mths

12 mths 12 mths 12 mths

Application Of FundsGross Block 87.41 90.15 93.13 88.82 Less: Accum. Depreciation 75.24 73.01 78.95 76.24 Net Block 12.17 17.14 14.18 12.58

Capital Work in Progress 4.79 0.00 0.05 0.00 Investments 0.00 0.00 0.00 0.00 Inventories 7.36 17.29 22.93 14.52 Sundry Debtors 24.26 7.57 12.91 9.07 Cash and Bank Balance 7.49 0.21 5.42 5.90 Total Current Assets 39.11 25.07 41.26 29.49 Loans and Advances 7.68 7.32 5.63 4.49 Fixed Deposits 0.00 0.00 0.00 0.00 Total CA, Loans & Advances 46.79 32.39 46.89 33.98 Deffered Credit 0.00 0.00 0.00 0.00 Current Liabilities 30.96 16.12 25.22 20.55

Provisions 1.04 2.12 2.33 2.27 Total CL & Provisions 32.00 18.24 27.55 22.82 Net Current Assets 14.79 14.15 19.34 11.16 Miscellaneous Expenses 0.00 0.00 0.00 0.00

Total Assets 31.75 31.29 33.57 23.74

Contingent Liabilities 2.06 2.00 2.02 2.08 Book Value (Rs) 8.77 9.27 9.47 9.15


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