Newby Teas makes India foray, aims to tap premium segment

UK-based premium tea company Newby Teas today announced its foray into the estimated Rs 7,500-crore Indian branded tea market with plans to introduce about 150 varieties within the next three years.

The Indian arm of the company, Newby India has already invested about Rs 25 crore in setting up a research and packaging facility in Kolkata with a capacity of about 360 tonnes per day. It will be investing about Rs 20 crore next fiscal to ramp up its overall operations in India.

"In the first year, we will have presence in eight major cities and expand it to 15 in three years time," Newby India Chief Operating Officer Anirudha Sen told reporters here.

Sen said globally Newby has about 200 varieties of tea and the company plans to bring about 150 of them into India within the next three years.

"We are starting off in India with about 50 varieties of tea and the price of different tea in our entire portfolio could range from Rs 800 to Rs 25,000 per kilo," he said.

The company plans to enter through the Horeca (hotels, restaurant and catering sector) and then follow it up with retail presence in lifestyle chain but not value retail, he said, adding it plans to open its own tea boutique in future.

Sen said by June this year the company will have retail presence through some of the lifestyle chains in India, without disclosing details.

Asked about expected revenues, Sen said the company expects to have about Rs 3.5 crore to Rs 4 crore in the first year of operations.