Rs 100 crore Chamong Tee Exports is entering the packet tea business in a month from now with its 'Te' brand of tea bags by next month. | |
| The brand will be blended and packaged at Chamong's plant in Kolkata. |
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| Speaking to Business Standard, Ajay Kichlu, director of the company said, "The Indian tea bag market has been growing at 40 per cent so it makes sense for us to tap the segment." |
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| The company would launch five variants of Darjeeling tea under 'Te' brand. |
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| These would first be rolled out in Mumbai and Delhi, followed by all the other metropolitan cities within two months. |
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| The company intends to first roll out the brand in hotels and restaurants, followed by retail chains. |
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| The same varieties of blend would also be available in loose format for people who do not want to purchase packets. |
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| "We are looking at selling 5 tonnes of tea in the first year of the packet format roll-out," said Kichlu. |
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| The tea bags will be priced at Rs 10 per packet, which means it would cost around Rs 5,000 a kilogram, while the same in loose format will be priced at Rs 5,000 for a kg. |
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| The difference in pricing, according to Kichlu, is due to imported materials used in packaging. |
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| "Almost all packaging materials have to be imported, from nylon bags to the strings, including the machines, and hence packet tea prices shoot up," Kichlu explained. |
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| Chamong operates in the premium organic leaf tea segment, and earns 80 per cent of its turnover through exports to USA, Japan, Russia, UAE and European Union. |
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| The total tea production of the group is about 3050 M.T. annually and employs about 10,000 personnel of which approximately 7,000 are women. |
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